Regional energy planning has become a key pillar for ensuring energy security and fulfilling climate commitments in Latin America and the Caribbean. The region has made significant strides in electricity interconnection, exemplified by the Central American Electricity Interconnection System and the Central American Regional Electricity Market. Similarly, successful cases of gas integration highlight the potential of regional cooperation. In the Andean subregion, Chile, Colombia, and Peru have advanced efforts to create an integrated electricity market, while Argentina and Brazil continue to strengthen their energy ties through binational projects. Overall, the region is making gradual but consistent progress toward regulatory harmonization, streamlined permitting processes, and enhanced energy security.
However, energy markets in Latin America and the Caribbean face persistent tensions between the goals of energy security and decarbonization. Electricity systems remain vulnerable to extreme droughts and the high costs of imported fossil fuels. While renewable energy accounts for 62% of the regional electricity mix, its intermittent nature demands greater investment in system flexibility—such as energy storage, backup generation with natural gas, and the deployment of smart grids. At the same time, limited regional coordination and fragmented regulatory frameworks hinder the effective integration of cross-border energy resources. The key question remains: how can national priorities be aligned with a regional energy vision that ensures an affordable, secure, and low-carbon energy supply?
