The Latin American region has recently shown promising signs of growth in the renewable energy sector. Over the past decade, the renewable energy capacity in Latin America and the Caribbean has consistently grown, reaching nearly 250 gigawatts in 2018. This region’s wind power generation capacity has more than tripled since 2013. Moreover, the generation capacity of solar photovoltaic energy increased 100-fold in the past ten years.
Despite their growing importance, most Latin American countries are still in their initial stages of development when it comes to renewable energy sources. In fact, renewable sources accounted for less than 16 percent of the total amount of electricity produced in Mexico in 2017. In Argentina, for example, renewables comprised only 11 percent of primary energy generation that same year. Furthermore, countries like Brazil and Paraguay, which have the highest shares of renewable sources in domestic energy supply in the region, still rely heavily on large hydropower plants, whose status as a renewable energy generation source is under heavy debate, as a result of the high environmental impacts caused by their construction.
Even so, Brazil, Mexico, and Argentina are some of the most attractive Latin American countries for renewable energy, having received considerable investments in clean energy in the past few years. Chile, Colombia and Peru are also increasingly important players in the global renewable energy market.