Latin America&Caribbean Energy Transition 2025

The way ahead5 This report affirms that LAC offers a unique mix of structural strengths and market opportunities. Realizing this potential depends on five key factors: clear long-term policies, de-risked financing, modern infrastructure, social legitimacy and support, and competitiveness rooted in regional country strengths. To drive the transition, the Latin American Energy Organization (OLADE) and other regional stakeholders have focused on priority areas that align with both established goals and emerging aspirations shaping the regional agenda. These include: –Clean cooking access: Achieve universal access to clean cooking methods by 2035, aiming for 95% of the population to have access to clean and safe cooking.60 –Renewables generation: Achieve at least 80% of power generation from renewable sources and 73% of renewables power capacity installed by 2030.61 –Regional storage: Increase regional storage capacities to reach 24 GW by 2030 and 46 GW by 2035.62 –Energy efficiency gains: Increase regional energy efficiency by 1.3 percentage points compared to the 2020 baseline (0.65%), reaching an efficiency rate of 1.95% by 2030.63 –Financial investments: Mobilize $150 billion per year in clean energy investment for the region’s energy transition by 2030.64 –Methane emissions measurement: Establish region-wide standards for mandatory measurement, reporting and mitigation of methane emissions, particularly in oil, gas and waste sectors. Align with international initiatives (e.g. the Global Methane Pledge) while tailoring approaches to LAC’s energy mix. Prioritize leak detection, flaring reduction and best-practice sharing across national oil companies and private operators.65 –Biofuels: Building on Brazil’s ethanol leadership and learnings, expand sustainable biofuel capacity across the LAC through increased regulatory support for biofuel blending of up to 25% in the transport sector.66 –Grid integration and planning: Build an integrated, resilient and climate-aligned energy system by harmonizing national energy planning, strengthening technical cooperation, promoting renewable energy and energy efficiency, and enhancing regional power integration to optimize resources, reduce costs and support sustainable development (through the Regional Energy Planning Council).Strategic implications for the 2026 OLADE agenda –Regional alignment, collaboration and energy market: Advance harmonization of regulatory frameworks, grid codes and market mechanisms to unlock cross-border energy trade and infrastructure sharing. –Policy frameworks with meaningful goals: Strengthen energy policies to go beyond targets, embedding clear implementation roadmaps, accountability and system-wide resilience measures. –Financing partnerships: Establish a multi- country platform for blended finance, working with development banks, climate funds and the private sector to mobilize large-scale capital for energy transition projects. –Resilience measures: Integrate climate adaptation into all major energy planning and investment decisions to ensure that vulnerable populations are not disproportionately affected by climate risks, preventing setbacks into energy poverty and advancing equity in access, affordability and reliability. –Capacity building and technical cooperation: Launch region-wide initiatives for workforce reskilling, innovation incubation and technical exchange, with a focus on underserved areas and emerging industries, and finance and provide technical support to create a regional women-in-energy network. LAC stands at an important moment in its energy transition. The priorities outlined in this report show how to harness the region’s strengths and address its challenges. By aligning national efforts, mobilizing investment and fostering inclusive, resilient energy systems, the region can lead a just and sustainable transition – one that delivers a secure, equitable and sustainable energy transition for all people in the region in a fast-changing global context. Taken together, these priorities provide clear answers to the three questions that anchor this assessment: where the region stands – on a strong sustainability base with readiness gaps to close; how to leverage its advantages – by mobilizing capital, modernizing and integrating grids, and advancing innovation, skills and data foundations for AI-enabled operations; and how to move faster together – by aligning policies and markets, deepening cross-border interconnections, and embedding equity so that progress is shared across countries and communities. Energy Transition Readiness: Latin America and the Caribbean 32