Latin American Protagonism in the Energy Transition: Get to Know the Numbers and the Initiatives

If humanity continues to exploit energy resources the way it exploits them today, there will be a mass extinction in just a few decades. What the 2024 report from The Lancet predicts has already been pointed out by several researchers and has inspired countless initiatives to fight climate change, Conferences of the Parties (COPs), and agreements between countries.

But, beyond all of that, looking to Latin America can be an important path. Although still far from ideal, LATAM is already ahead of the other continents when it comes to the energy transition and the reduction of carbon gas emissions; if used as an example, human beings could delay their own extinction by a good few hundred years, or even thousands.

The Data and RELAC

The boom in clean energy — renewable energy sources that do not emit pollutants — in Latin America is relatively recent. A survey by the Energy Institute, in partnership with KPMG, reveals that in 2021 and 2022, renewable energy generation on the continent registered growth rates of 15.5% and 11.7%, respectively, demonstrating sociopolitical engagement in the energy transition — the substitution of the energy matrix, moving from fossil energy sources to clean sources.

With this, the participation of renewables in the regional electric matrix came to represent 64% in 2023, according to data from the Latin American Energy Organization (OLADE). Pollutant emissions in the electric sector, in turn, fell 26%. The following year, LATAM kept going full steam ahead and reached the milestone of 69% of electricity coming from renewable sources, which represents more than double the world average of just 30%.

All of this energy change directly reflects in the reduction of emissions of gases that accelerate the greenhouse effect and that, consequently, drive global warming and climate change. Among the five regions of the globe, Latin America is among the lowest emitters in the world, responsible for just 4.4% of global CO₂ emissions. (Yes, it really would be very effective if all continents acted like LATAM.)

The acceleration of the energy transition on the continent had political and economic boosts for it to be put into practice, of course, and RELAC is a milestone in this sense. Entitled “Renewables in Latin America and the Caribbean,” it is an agreement created at the end of 2019, within the framework of the United Nations Climate Action Summit, with the objective of reaching at least 70% participation of renewable energy in the region’s electric matrix by 2030.

RELAC is a regional initiative with 15 member countries, the only one of its kind in the context of Latin America and the Caribbean. For the first time, a group of countries in the region voluntarily agreed to promote renewable energy with a concrete target, a monitoring scheme, and an operational structure designed to support the countries in the process. We're ready to raise the target, aren’t we?

Joking aside, there is still much space and potential for increasing renewables in the region’s energy matrix. A recent report from Global Energy Monitor pointed out that large-scale wind and solar capacity could increase by 460% by 2030, reaching an estimated capacity of 390 GW (gigawatts).

Brazil: A Great World Decarbonizer

Among Latin American countries, Brazil has been the great protagonist in global decarbonization. With an energy matrix that has been diversifying, the country today has almost 90% of its electricity coming from renewable sources, according to the study “Green Energy in Latin America,” conducted by Broadminded.

Diversification is the key word. A few years ago, Brazil depended almost completely on energy from hydroelectric plants (an average of 70%), a renewable energy source, but one that causes great environmental impact. According to more current 2024 data from the Energy Research Company, energy coming from water power decreased its relative participation, staying around 55.3%, while solar and wind energy grew significantly.

Investment in wind and solar plants has placed Brazil, alongside Chile and Mexico, in the leadership of the energy transition in Latin America. By 2030, it is estimated that Brazil will represent 58% of the new renewable energy capacity of the region, still according to the Broadminded report. What corroborates this is that, together, wind and solar photovoltaic represented 23.7% of total electricity generation in 2024; just a few years ago this participation was insignificant.

Not only has cleaner (or greener) energy been produced in Brazil, but a greater quantity of energy has been produced, which generates a great opportunity for overall economic growth. Data from Ember shows that, in the last four years, electricity production in Brazil grew 11%, reaching the mark of 698,511 GWh in 2023. Solar energy alone grew more than 371% in the same period, driven by investments in projects located in the Northeast region.

From Scientific Cooperation to Cleaner Companies: Initiatives in LATAM

Several initiatives are examples of how Latin America has consistently advanced in the development of renewable energy projects, placing the region in a competitive position on the global stage. This context stimulated the growth of long-term contracts for the purchase and sale of energy (PPAs), which reached a record 68 GW in 2024, with annual expansion of 33% since 2015, according to S&P Global Commodity Insights.

Among the companies that stand out in this movement, Atlas Renewable Energy has consolidated itself as one of the largest corporate suppliers in the region. Since 2017, it has already signed more than 6 GW in PPAs with large industries in Brazil, Chile, Mexico, Colombia, and Uruguay. The company combines customized financial solutions, contractual engineering, and I-REC traceability certifications (proof of the renewable origin of the energy) to ensure economic development aligned with lower environmental impact.

Beyond the electricity purchase and sale sector, sustainable mobility has also been gaining space. Electric vehicle sales doubled in 2024, with Brazil and Mexico in the lead. For 2025, the expectation is that local production will accelerate price parity between electric and combustion cars, driven by manufacturers such as BYD and Great Wall Motors, which are betting on the region as a strategic hub.

In Argentina and Chile, solar energy is a great opportunity. An emblematic example is the Ullum IV solar plant, in San Juan (AR), chosen for financial injection by the Banco de Inversión y Comercio Exterior (BICE) because of its relevance in diversifying the country’s energy matrix. The project injects clean energy directly into the grid and reinforces the role of solar sources in local supply.

Advances go beyond expanding infrastructure and selling sustainable products. Scientific cooperation has also been a vector of innovation, even between Latin America and other continents. Energytran is a reference point. Funded by the Horizon Europe program of the European Commission, the project connects Latin American and European institutions to treat the energy transition as a global challenge. The initiative prioritizes technological, environmental, and social dimensions, seeking to contribute to public policies that favor a clean and just transition.

Conclusion

Worthy of international highlight, Latin America shows that the energy transition is not just a future possibility, but an ongoing reality, with direct impacts on the economy, society, and the environment. The advance of business initiatives, international scientific cooperation, and investments in new technologies consolidate the protagonism of the region, which positions itself as a reference in the use of renewable energies. There are still countless challenges, but the path traveled so far demonstrates that Latin American countries are already active leaders in building a cleaner and more sustainable energy future.