Sustainable hydropower is crucial to the energy transition due to its unique characteristics: renewable and flexible electricity generation that can be deployed on a large scale. This makes it possible to provide reliable power, support wind and solar photovoltaic (PV) power generation, and avoid dependence on fossil fuels or technologies not yet deployed. Latin America holds 14% of the world's installed hydroelectric capacity, with Brazil as the world's second-largest hydroelectric producer, after China.
Although the region's hydraulic potential is significant and supplies 45% of Latin America's electricity needs, it is estimated that only 20% to 25% of its total potential has been developed. This indicates that there is ample scope to expand hydropower capacity and further contribute to the transition to sustainable energy sources.
