Latin America stands at a turning point. It is a moment that feels exciting and urgent at the same time. Our region has everything it needs to lead the global conversation on clean energy, including abundant natural resources, strong technical talent, and a growing determination to innovate. But potential alone does not guarantee progress, and the transition ahead must be thoughtful, inclusive, and centered on people.
The OLADE Report No. 8 on Electricity Generation, November 2025, offers a clear picture of where we stand and where we need to push further. As I read it, I kept returning to the same idea. Latin America is full of possibilities, but possibilities only turn into progress when we plan with intention and work together across borders, sectors, and communities.
As someone who believes deeply in a just and integrated transition, I see this moment as an invitation. It is an invitation to coordinate better, to design policies that reflect our realities, and to ensure that clean energy becomes a tool for dignity and development, not only a decarbonization target.
What OLADE tells us: progress, tensions, and opportunities
Renewable energy is rising, but hydropower still dominates
OLADE reports that 71 percent of the region’s electricity now comes from renewable sources, up from 68 percent in 2024. Hydropower alone represents 45 percent of the total. Solar and wind reached a combined 18 percent, showing steady growth.
This progress is meaningful. It shows commitment and regional momentum. But it also highlights a vulnerability. We continue to depend heavily on hydropower. In a region shaped by increasing climate variability, this dependence carries risk. A just transition must also be a resilient one, and resilience requires diversification.
Thermal technologies still play a reliability role
OLADE also notes that thermal generation, mostly natural gas, continues to provide 27 percent of electricity in the region. There is a practical reason for this. Natural gas stabilizes the system during droughts or peaks in demand.
As we move toward cleaner energy, reliability cannot become an afterthought. People and industries need systems they can trust. A fair and orderly transition recognizes the stabilizing role natural gas plays today, even as we build a future with lower emissions.
We are not yet the connected region we could be
One important conclusion in the report is that our regional energy systems remain fragmented. Latin America still operates more like a group of isolated markets than an interconnected network. The report estimates that deeper interconnection could generate 2 billion dollars in annual savings, along with improved flexibility and resilience. Projects such as the Andean Electrical Interconnection are promising. However, regulatory harmonization continues to be a major challenge.
We do not lack talent or resources. What we lack is coordination. A more connected region is a stronger region.
Energy access remains uneven, and this must be a priority
OLADE highlights two important figures:
- 17 million people still lack electricity.
- 77 million still rely on unsafe or polluting cooking systems.
These numbers represent more than data points. They represent communities that the transition has not yet reached. A just transition must correct these inequities. Distributed generation, microgrids, and community-centered solutions are not only technical strategies. They are pathways to justice.
Looking ahead, the challenges that will shape our energy future
Climate resilience is not a section added at the end of an energy plan. It is the foundation of the entire plan. If there is something I have learned in this sector, it is that resilience must guide every decision we make.
Adapting to the new climate reality requires reinforcing the grids we depend on today. It requires accelerating investment in storage technologies. It also requires diversifying our energy mix far beyond historical patterns. None of these steps are simple, but they are necessary if we want a transition that endures.
The next chapter of the region’s energy transition will be shaped by emerging technologies. Offshore wind, green hydrogen, smart grids, and energy storage will all play important roles.
Our coastal regions, natural resources, and mineral reserves position us to take advantage of these opportunities. The question is no longer whether the potential exists. The question is whether we will act in time.
We need rules that allow us to grow together
Latin America has 27 OLADE member countries, each with its own regulatory approach. Diversity can be positive, but fragmentation slows progress. Without alignment on technical standards, market rules, and environmental criteria, regional integration will remain an idea rather than a practice. Specialists estimate that the region will need 150 billion dollars by 2035 to expand renewable capacity, modernize grids, and integrate energy systems. This is a significant amount, but it is also a historic opportunity.
Mobilizing this capital requires predictable regulations that create trust. It requires public and private collaboration that scales solutions. It requires financial instruments that reduce risk and attract long term investment.
If we align capital with purpose, Latin America can leap forward instead of falling behind.
A transition that puts people and cooperation first
A just transition means that no community is left behind, and no country moves forward alone. It means recognizing the social, economic, and cultural diversity that defines Latin America.
A just transition is reliable, so people can trust the system. It is accessible, so rural and marginalized areas benefit. It is affordable, so energy becomes a tool for development. It is integrated because collaboration strengthens the region. It is human-centered, placing well-being at the core of decision-making.
This is the moment to act with intention
Our region has the resources, the talent, and the momentum to become a global reference point in clean and inclusive energy. This is the time to connect our countries, uplift our communities, and design systems capable of withstanding future challenges. A just and integrated energy transition is necessary. And when Latin America moves with intention, we build more than energy systems. We build a fairer and more resilient future for everyone.
Based on OLADE, Report No. 8 on Electricity Generation, November 2025.
This article was developed by specialist Ana Ludlow and published as part of the seventh edition of Inspenet Brief February 2026, dedicated to technical content in the energy and industrial sector.