Renewable Energy in Latin America: A region on the Brink of a Green Breakthrough

Resuello Aristhea Anne Mendoza | Buenos Aires Herald

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Latin America has long stood at the crossroads of a vulnerable and ever-changing environment. Today, as climate pressures intensify and global energy markets shift, this vulnerable region finds itself confronting a question that longs to be answered: will the region finally deliver a coordinated and equitable renewable energy transition, or continue to advance in fragmented, uneven strides?

Across regional discussions, including those raised in the latest Economic Commission for Latin America and the Caribbean (ECLAC) sessions, political will exists in most Latin American nations to resolve the difficult issue on renewable energy.

Not starting from scratch

Despite the issue on renewable energy still being debated on, many Latin American nations have already had a head start in moving towards a more sustainable future.

Uruguay, for instance, produces almost 98% of its electricity from renewable energy sources, and argues that the region's inefficiencies are structural rather than societal. Uruguay also pushed for public-private partnerships and debates on grid weaknesses, reflecting a level of maturity few neighbours have yet fully achieved. Paraguay, almost entirely powered by hydropower, had similarly advocated for diversification — not because it needs more renewable capacity, but because it recognises that solely depending on one source on its own makes the nation more vulnerable to climate-related issues.

Across other nations, progress is real, but fragile. States like Nicaragua and Honduras already source more than half their energy from renewable sources. Yet, persistent issues like poverty, inconsistent funding, and infrastructure gaps stand in the way of these nations from furthering into a greener state.

Honduras, despite generating 65% of its electricity from renewables, still faces strains due to battles with corruption, grid instability, and project delays due to government pushback.

Nicaragua warns that if little is done in promoting international cooperation, its energy gains risk widening the inequality gap rather than alleviating it.

Energy giants

During the debate, Mexico and Brazil, two giants in the energy sector, acknowledged the potential they have in providing funding and training for poorer countries. However, political complexities have restricted the ability of these giants to provide resources to poorer countries in tackling their battle with climate change.

Mexico’s target of 45% clean energy by 2030, as well as its call for a more attractive investment environment, signals the country’s ambition. Yet, historical prioritisation in fossil fuels casts a long shadow, and hinders at the country’s ability to reach a greener state.

Brazil championed green financing and technology transfer and urged that the issue on inequality be placed at the centre of the debate. Without affordable access to renewable energy sources, renewable growth risks being a privilege rather than a right.

Both big and small

Smaller, vulnerable states are sounding the alarm with increasing urgency. Grenada, Haiti, Suriname, and Panama stress the existential stakes: hurricanes, rising seas, and the economic fragility that climate shocks magnify.

Grenada, which aims for 100% renewable energy by 2030, possesses abundant geothermal potential, but lacks capital and technical capacity.

Additionally, Haiti prioritises affordability, resilience, and access, which are three pillars it cannot support on alone. Suriname, looking toward solar and hydropower, confronts the perennial twin constraints of high costs and limited technical expertise. Panama, vulnerable to extreme climate events, advocates for regional training centres and an interconnected grid that could fortify the region’s resilience.

In essence, the Latin American voices share a clear refrain: cooperation towards such a complex issue is not optional, but a lifeline.

At the same time, geopolitical realities cannot be ignored when facing such complexities. Venezuela, home to one of the world’s largest oil reserves, supports clean-energy development and insists that the transition be “fair and realistic”. The US continued to prioritise fossil-fuel production domestically, even as it calls for strategic cooperation. This duality complicates the regional energy map, as Latin America’s transition depends partly on partners who are also navigating contradictory energy agendas.

New ideas on the plate

Many nations also suggested new solutions to combat complex climate issues.

Guyana proposed the creation of a regional green-energy mechanism and a renewable-industry reliability programme, both of which are attempts to harmonise standards and share capacity. Guatemala, one of Central America’s largest economies, saw vast renewable potential, but acknowledged that many communities remain energy insecure. Its call for regional trading hubs and a strengthened workforce underscores a reality often overlooked: energy transitions fail not for lack of panels or turbines, but for lack of people trained to manage, install, and maintain them.

Education and workforce development was raised across discussions. The Bahamas prioritised workforce training; Peru pushed for higher-education strategies to develop renewable-energy expertise; Panama wants technology-training centres; Germany, offering support, targets small and rural states.

Such proposals recognised a foundational truth: renewable energy is not merely an engineering challenge, but a human-capital one.