Regional energy planning has become a fundamental pillar to guarantee energy security and meet climate commitments in Latin America and the Caribbean. Our region has outstanding experiences of electrical interconnection, such as the Electrical Interconnection System of Central American countries and the Central American Regional Electricity Market. And successful cases of gas integration in the region demonstrate the potential of regional cooperation. Chile, Colombia and Peru have taken important steps towards the creation of an integrated electricity market in the Andes subregion, while Argentina and Brazil have been deepening their energy exchange through binational projects, the region is making steady progress towards achieving regulatory harmony, permits and energy security.
Latin American and Caribbean energy markets face tensions between energy security and decarbonization, with electricity systems vulnerable to extreme droughts and high costs of imported fossil fuels. Although renewable energies represent 62% of the regional electricity matrix, their intermittency requires investments in flexibility (batteries, natural gas as a backup) and smart grids. A lack of regional coordination and fragmented regulatory frameworks complicate the integration of cross-border resources. How do you balance national priorities with a regional energy vision that ensures affordable, low-carbon supply?
