Latin America, future world leader in renewable energy?

Latin America is emerging as a major renewable energy producer, with plans to install nearly one billion solar panels in the next seven years, according to a report released by the Global Energy Monitor (GEM). By 2030, the continent is expected to launch solar and wind power projects providing more than 319 GW of renewable energy, or nearly 70% of its current electricity capacity from all sources.

A huge potential

Latin America has enormous potential to become a world leader in renewable energy, thanks to its abundant wind and solar energy resources. The new clean energy projects would increase the region’s current wind and solar capacity by more than 460%. While not all of the announced projects will come to fruition, the region is still experiencing strong momentum and new projects will likely be announced in the coming years, experts say.

Brazil on the front line

As the largest economy in Latin America, Brazil is the main driver of the renewable energy race, with 27 GW of solar and wind generation already in operation and a forecast of an additional 217 GW by 2030. Since January 2023, leftist President Luiz Inacio Lula da Silva has made strong commitments to clean energy and the fight against climate change, following four years in office of climate skeptic Jair Bolsonaro.

Examples to follow

Chile, a traditional importer of fossil fuels, is also making a rapid transition to renewable energy. Solar and wind power now account for 37% of installed electrical capacity. Colombia has planned an additional 37 GW of solar and wind generation capacity by 2030.

Mexico in trouble

Mexico, the second largest economy in the region, is in trouble. Despite being an early convert to renewable energy, the government of President Andres Manuel Lopez Obrador, an advocate of fossil fuels, has recently passed reforms that have given a second wind to the state-owned oil company Pemex. According to the GEM report, even if all of Mexico’s green energy projects were to succeed, the country would only be 70% of the way to fulfilling its promise to reach 40 GW of solar and wind capacity by 2030.

Opportunities for offshore wind turbines and green hydrogen

Latin America also has promising potential in offshore wind. Exports of green energy could also be a boon, either by selling surplus to other countries or by exporting green hydrogen. The rapid development of green energy has been helped by the falling prices of solar panels and wind turbines, as well as the rising cost of fossil fuels due to the crisis in Ukraine.

Although the International Energy Agency (IEA) predicts that renewables will surpass fossil fuels in terms of electricity generated as early as 2025, it must be even faster to meet the goals of the Paris Agreements and limit temperature rise. Energy-consuming countries such as North America, Europe and China must follow Latin America’s lead to do their part in sustainable development.