QCOSTARICA — The global energy transition is one of the central themes on the agenda of the G20 summit and COP30, which will also be hosted by Brazil in 2025.
The recent study Green Energy in Latin America, carried out by Broadminded, the Research Center of Sherlock Communications, a multi-award-winning communication agency, highlights the great potential of Latin America to lead this transition, gathering information and perspectives from multidisciplinary experts on the advancement of green energy in the region.
According to the analysis that collects data from the International Energy Agency (IEA), 60% of Latin America’s electricity is generated from renewable energy, which positions it as one of the cleanest electricity networks in the world. Countries such as Chile, Mexico and Brazil are leading the way, with the latter responsible for 58% of Latin America’s new renewable energy capacity by 2030.
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In Central America, the expansion of renewable energy generation is a fundamental pillar for regional sustainability. According to the Regional Operating Entity (EOR) of the Central American Electricity Market for the period 2024-2038, 181 candidate projects have been identified totaling 10,200 MW of installed capacity, of which 32.6% corresponds to solar energy and 19.89% to wind energy.
Panama leads the region with 73 projects totaling 4,393 MW, followed by Guatemala with 49 projects and Costa Rica with 18. These efforts highlight the commitment of Central American countries to diversify their energy matrix and move towards greater regional energy self-sufficiency.
Growth in electricity generation from renewable sources
Most countries still rely on a predominantly hydroelectric energy matrix, but the region has shown significant progress in the diversification of its clean energy sources, especially wind and solar.
Although progress is being made towards leadership in the global energy transition, experts interviewed by Broadminded point out that there are still important structural challenges for Latin America to consolidate its position in the coming years.
The main challenge that most Latin American countries have in common is defining financing strategies for essential infrastructure projects related to energy transmission and storage.
In Central America, experts point out that the lack of investment in transmission infrastructure could limit the capacity of electricity grids to integrate new renewable sources, which underlines the importance of regional cooperation and access to external financing. According to the EOR, investment in strategic infrastructure will make it possible to overcome technical restrictions and promote the efficient use of renewable energy in the region.
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“Despite Latin America being a world leader in renewable energy, there are a number of challenges. Overcoming these obstacles is crucial for this region to maintain and expand its leadership role in our transition to a more sustainable and resilient energy model,” said Patrick O’Neill, Managing Partner of Sherlock Communications.
Featured projects for 2024-2038
The EOR Regional Generation Planning Report identifies 181 candidate projects totaling 10,200 MW for Central America:
● Guatemala: 49 projects totaling 1,879.8 MW, including: 8 wind (330 MW), 7 solar (260 MW), 12 geothermal (304 MW), 4 natural gas (650 MW), 3 natural gas GDR (15 MW), 7 hydro GDR (35 MW) and 8 hydro (285.8 MW).
● El Salvador: 9 projects totaling 795 MW, including 3 wind (200 MW), 2 solar (150 MW), 2 geothermal (45 MW) and 2 natural gas (400 MW).
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● Honduras: 23 projects totaling 1,284 MW, including 2 wind (120 MW), 6 solar+storage (240 MW), 1 geothermal (20 MW), 2 natural gas (424 MW) and 12 bunker (480 MW).
● Nicaragua: 9 projects totaling 458 MW, including 4 wind (207 MW), 1 geothermal (25 MW) and 4 hydro (226 MW).
● Costa Rica: 18 projects totaling 1,390.1 MW, including 7 wind (210 MW), 7 solar (410 MW), 1 geothermal (55 MW) and 3 hydro (715.1 MW).
● In Panama, there are 73 projects totaling 4,393.41 MW, including 12 wind (1,011.77 MW), 37 solar (535.95 MW), 10 hydro (304.69 MW) and 14 natural gas (2,541 MW).
There are also 12 regional natural gas projects (380 MW each) distributed throughout the region, totaling 4,560 MW.
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