Advancing Latin America%27s Power System Transformation 2025

3 The post-pandemic economic landscape and effects of climate change in LAC have led to a rethinking of the importance of energy integration, building on the benefits achieved and anticipating a greater impact. Although renewable sources already account for nearly 70% of electricity generation in LAC, improving transmission systems is essential to further integrate renewables into the region’s power sector and facilitate the incorporation of new generation plants.19Investments in the expansion of high-voltage transmission lines and substations are crucial to enhance the capacity of LAC electricity systems in response to increasing demand, driven by the electrification of multiple sectors. These investments are essential to support the energy transition and to expand access to reliable, affordable and modern energy, as outlined in Sustainable Development Goal 7 (SDG 7) of the 2030 Agenda for Sustainable Development.3.1 Current landscapeStrategies for enhancing regional integration and cooperation Regional integration can strengthen cross-border cooperation and infrastructure development. 13 Advancing Latin America’s Power System Transformation