Latin America is emerging as a leading region in the adoption of renewable energies, with countries like Costa Rica and Uruguay at the forefront. Additionally, other countries in the region are increasing their efforts to integrate clean energies into their power grids.
The rise of Latin America in alternative energy
In 2016, Costa Rica managed to operate exclusively with renewable energy for almost seven months. Uruguay has also stood out in this field, while other nations have increased their electricity production from alternative sources. Although Argentina has recently joined this trend, its commitment reflects a regional movement towards sustainable energies.
In 2014, Latin America produced 53% of its electricity through renewable sources, significantly surpassing the global average of 22%, according to data from the International Energy Agency. This achievement is largely due to hydroelectric power, facilitated by the abundant rivers that run through the region. However, extreme events like the drought in Bolivia, which led to water rationing in La Paz, demonstrate the vulnerability of this source to climate change.
The contribution of other alternative energies such as wind, solar, and geothermal is still modest, representing only 2% of energy production in Latin America, compared to 6% globally. Nonetheless, several factors suggest accelerated growth in this sector.
Recently, many Latin American countries have adjusted their regulations to promote alternative energy without the need for subsidies. They have conducted auctions for contracts dedicated exclusively to renewable generation, following the example of Chile and Argentina. These regulatory efforts have fostered investor confidence, which could accelerate the adoption of clean energies.
Mexico, Argentina, and Chile have set ambitious goals for 20% of their electricity to come from renewable sources by 2025. Meanwhile, most countries in the region rely on natural gas, which is less polluting than oil, for their basic electricity generation. Chile and Colombia, however, still use coal, a highly polluting source.
The scarcity of coal deposits in the region, once an obstacle to industrialization, can now be an advantage in the push towards a greener and more sustainable future.
