Latin America and Caribbean
The Regional Action Plan for Latin America
Clean Energy Corridor of Central America (CECCA)
Renewable Energy for Latin America and the Caribbean Initiative (RELAC) - Supporting Agency
SIDS Lighthouses Initiative
Overview
Latin America is among the most dynamic renewable energy regions globally, with a renewable share in primary energy supply that remains well above the global average. The region’s power sector has historically been shaped by a strong reliance on hydropower, which continues to play a central role in electricity generation and system stability. This legacy provides a significant advantage for the integration of variable renewable energy sources, as the operational flexibility of hydropower can help balance growing shares of wind and solar generation
In recent years, countries across the region have increasingly focused on diversifying their electricity systems, supported by reforms to policy, regulatory and market frameworks aimed at enabling higher levels of renewable energy deployment.
Competitive renewable energy auctions and improved investment conditions in countries such as Argentina, Brazil, Mexico, Colombia, Chile and Peru have accelerated the deployment of large volumes of wind and solar capacity, contributing to a steady transformation of national power mixes.
Over the past decade, the region has attracted substantial investment in power generation, including continued investment in hydropower alongside rapidly growing allocations to solar and onshore wind.
At the same time, the cost of renewable energy technologies has declined sharply, and utility-scale solar photovoltaic and onshore wind have become among the most cost-competitive sources of new electricity generation in many Latin American markets, often competing directly with conventional fossil fuel-based generation without the need for financial support.
These trends, combined with maturing technologies and ongoing policy reforms, present an unprecedented opportunity for Latin America to further harness its vast renewable energy potential across power, transport and other end-use sectors. Fully realising this potential will require continued efforts to strengthen long-term energy planning, enhance power system flexibility, modernise grids, and improve conditions for project development and finance. Regional co-operation, knowledge sharing and investment mobilisation will be essential to sustain momentum and ensure that renewable energy continues to support economic development, energy security and decarbonisation objectives across the region.
IRENA work in the region
IRENA’s engagement in Latin America supports countries through analytical work, policy advice and targeted initiatives at national and regional levels. IRENA undertakes regional market analyses and supports regional dialogue and action planning efforts that identify key challenges and priority areas for collaboration, including policy and regulatory frameworks, project development and finance, long-term planning, grid integration of variable renewable energy, power system flexibility and the deployment of technologies such as geothermal energy.
- The Regional Action Plan for Latin America
- Clean Energy Corridor of Central America (CECCA)
- Renewable Energy for Latin America and the Caribbean Initiative (RELAC) - Supporting Agency
- SIDS Lighthouses Initiative
The SIDS Lighthouses Initiative (LHI) is a framework for action to support Small Island Developing States (SIDS) in their energy transition efforts from fossil fuel dependence to renewables. The Initiative brings together 42 SIDS as well as partners, including developed countries, regional and international organisations, development and multilateral agencies, private companies, research institutes and non-profit organisations. IRENA is the coordinator and facilitator of the initiative.
Key data
Past Events
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13 November 2025 Virtual
Workshop: IRENA SolarCity Simulator – Grenada
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3-4 June 2025 Rio de Janeiro, Brazil
1st Energy Planning Summit
