Latin America hosts some of the most dynamic renewable energy markets in the world, with more than a quarter of primary energy coming from renewables, twice the global average. Power sectors in the region are characterised by a high dependence on hydropower, and exploiting the complementarity between hydropower and variable renewable energy sources is a key leveraging factor for all renewables in Latin America.
Countries are beginning to address diversification efforts in electricity systems, and are working to create more enabling policy and regulatory environments. In this context, recent auctions in Argentina, Brazil, Mexico, Chile, and Peru have helped to accelerate the deployment of thousands of megawatts of wind and solar energy in the region.
Total investment in power generation reached almost USD 120 billion between 2010 and 2015, including USD 38 billion for large-scale hydropower. Costs for renewable energy technologies have fallen to the extent that solar and onshore wind power no longer need financial support to compete with conventional power generation in a growing number of Latin American countries.
Rapid cost reductions, maturing technologies and further renewable energy policy reforms offer an unprecedented opportunity to further tap the vast renewable energy potential in the region.
IRENA’s support in Latin America includes the following national and regional programmes and initiatives: