With more than a quarter of primary energy coming from renewables, twice the global average. In addition to the historical role of hydropower and pioneering moves with biofuels, countries in the region are significantly scaling up other renewable energy sources, such as wind, solar and biomass-based electricity. Brazil, Chile and Mexico ranked amongst the top ten global renewable energy markets in terms of investment in 2015, and several countries in the region, like Costa Rica, Uruguay and Paraguay, generate virtually all electricity through renewables. Latin America offers a comprehensive review of the status and trends in the region’s renewable energy development. The report, prepared by the International Renewable Energy Agency (IRENA), highlights Latin America’s wealth of knowledge, draws key lessons, and outlines findings to support the continued expansion of renewables for power generation, transport and other end-uses.
Policies, coupled with recent renewable energy technology cost reductions and broader energy drivers such as energy diversification and climate change, have played a decisive role in the rapid uptake of renewables in the region. The report also assesses the framework for finance and investment in the sector. While specific characteristics vary from country to country, success depends on some common attributes, including access to affordable finance for renewables. The significant role of hydropower in several Latin American countries, meanwhile, creates opportunities to harness complementarities and scale up other renewable energy technologies. The report includes an in-depth analysis of the mechanisms through which hydropower and other renewables can complement each other and can improve the cost-efficiency and reliability of power systems.