Latin America has undergone a notable transformation in the energy sector over the past decade, emerging as one of the world’s most dynamic regions in renewable energy development. With abundant solar, wind, hydro, and geothermal resources, the region has leveraged its natural potential to achieve significant progress toward cleaner and more sustainable energy systems. Data from the International Energy Agency (IEA), the World Bank, and the International Renewable Energy Agency (IRENA) reveal remarkable trends in renewable energy production from 2015 to 2024.
In 2015, renewable energy accounted for approximately 52% of total electricity generation in Latin America, a figure already much higher than the global average of around 23%. By 2024, this share had risen to 61%, making the region one of the global leaders in clean energy adoption. This growth has been driven by long-term energy policies, private-sector investments, and technological improvements that have reduced the cost of renewable energy systems.
Brazil is the largest energy market in the region and remains heavily dependent on hydropower, which supplies more than 65% of its electricity. However, Brazil has also experienced a surge in wind energy—growing more than 300% since 2015—particularly in the northeastern states where wind capacity factors are among the highest in the world. Meanwhile, Chile has become a global model for solar energy expansion thanks to its Atacama Desert, one of the sunniest regions on Earth. Between 2015 and 2024, Chile’s installed solar capacity increased more than sevenfold, surpassing 13 GW.
Argentina has also made impressive progress in wind energy, with annual capacity increases exceeding 25% since 2018 due to large-scale projects in Patagonia. In Central America, Costa Rica continues to stand out for generating nearly 98% of its electricity from renewable sources, combining hydropower, wind, geothermal energy, and biomass.
Investment in renewable energy has been another key driver of growth. Between 2020 and 2024, Latin America attracted more than $70 billion in clean energy investments. These inflows have supported infrastructure modernization, grid expansion, and the development of large solar and wind farms. Clean energy projects have also contributed to economic development, creating an estimated 1.3 million direct jobs across the region over the past decade.
Despite this progress, challenges remain. Some countries face aging grid infrastructure that limits their ability to integrate renewable energy at scale. Seasonal droughts, exacerbated by climate change, have also highlighted the vulnerability of hydropower-dependent nations. As a result, many countries are seeking to diversify their energy mix by increasing wind, solar, and geothermal production.
One of the most promising opportunities for the future is green hydrogen, with Chile leading the race to become a major global exporter by 2030. Investments in green hydrogen in Latin America could reach $90 billion in the next five years, according to regional projections.
In conclusion, Latin America’s renewable energy transition between 2015 and 2024 showcases a strong regional commitment to sustainability and energy security. With continued investment, policy innovation, and technological advancement, the region is positioned to become a global leader in clean energy and a model for sustainable development.
