Regional energy planning has become a fundamental pillar for ensuring energy security and meeting climate commitments in Latin America and the Caribbean. Our region has notable experiences in electricity interconnection, such as the Central American Electricity Interconnection System and the Central American Regional Electricity Market. Successful cases of gas integration in the region demonstrate the potential of regional cooperation. Chile, Colombia, and Peru have taken important steps toward creating an integrated electricity market in the Andean subregion, while Argentina and Brazil are deepening their energy exchange through binational projects. The region is making steady progress toward achieving regulatory harmony, permitting, and energy security.
Energy markets in Latin America and the Caribbean face tensions between energy security and decarbonization, with electricity systems vulnerable to extreme droughts and high costs of imported fossil fuels. Although renewable energy represents 62% of the regional electricity mix, its intermittency requires investments in flexibility (batteries, natural gas as backup) and smart grids. A lack of regional coordination and fragmented regulatory frameworks complicate the integration of cross-border resources. How can national priorities be balanced with a regional energy vision that guarantees affordable, low-carbon supply?
