Several countries in Latin America and the Caribbean have an adequate renewable energy generation capacity, abundant water resources and other favorable conditions to diversify the power generation matrices and decarbonize energy-intensive industrial segments. Breaking down legal, regulatory, financial, technical and market barriers can help them lead the charge on clean energy initiatives.
For the last two decades, there has been a boost in renewable energies in our region, initially led by Brazil, Chile and Mexico, which benefited from economies of scale when renewable energy generation costs went down and followed later by many other countries.
Abundant minerals for transition, potential in hydro, solar, and wind power, and tools from the digital revolution position the region ideally for developing future energies and reaping their benefits.
Manufacturing is one of the main money-making, job-creating sectors in Central America. The current prices of renewable energy and the adoption of efficient practices are starting to cut the path towards carbon-low manufacturing, a competitive edge that could lead to export markets.
Bold and immediate action is needed for businesses and economies to leverage the transformative power of the private sector as we strive to meet our net-zero commitments under the Paris Agreement.
There can be no global shift to renewable energy without better storage technology. New solutions such as Battery Energy Storage Systems (BESS) are emerging in the region to help build the business case for coupling this technology with renewables.