Latin America’s Moment: Can the Region Lead the Clean Energy Future?
- Adrian Rivodeaux
- May 4
- 3 min read
Imagine a world where Latin America and the Caribbean aren't just following the clean energy movement but setting the pace. That world isn’t far off. Today, over 60% of the region’s electricity already comes from renewables. That’s more than double the global average. From the sun-drenched plains of northern Chile to the wind corridors of Brazil, the region is brimming with potential. Add in world-class lithium reserves and the copper essential for electrification, and Latin America has more than resources; it has leverage.
The question isn’t whether the region can lead. It’s whether it will.
The pieces are in motion. Costa Rica regularly runs on nearly 100% clean electricity. Mexico is tapping its geothermal potential, and Brazil’s distributed solar boom is putting power directly into the hands of citizens. There are bold plays, too: Chile and Uruguay are betting big on green hydrogen, with projects designed not just for domestic use, but for export. And with regional initiatives like RELAC aiming for 80% renewables by 2030, there’s a shared sense of urgency.
But there’s also a drag. Legacy policies, outdated regulatory frameworks, and inconsistent investment environments are slowing momentum. Some governments remain tangled in fossil fuel dependencies. Mexico’s continued protection of Pemex, for instance, has introduced legal and financial uncertainty that’s spooked major investors. Elsewhere, environmental and social conflicts around mining projects remind us that energy transitions must include (not overlook) local communities.
Now here’s the shift: this story isn’t just about infrastructure or policy. It’s about cities. Bogotá’s electric bus system and Mexico City’s push for rooftop solar point to something bigger. These aren’t pilot projects; they’re early signals. Urban centers may become the real engines of the transition, not national governments. Cities have the urgency, the scale, and increasingly the tools to move faster than the systems above them.
And as this movement builds, a different kind of leadership will be needed. Not just politicians or engineers, but navigators, firms, and thinkers who can bridge investment with implementation. This is where advisory groups like LuzLatam have a role to play. Their value isn’t in pushing the latest tech. It’s in helping governments and companies steer through complexity, center equity, and align capital with the scale of the challenge.
Still, progress is fragile. The region needs over $400 billion in energy investments by 2040. Sixteen million people still lack electricity altogether. And while lithium and copper are keys to the clean energy future, they’re also flashpoints for geopolitical and environmental tension. China has already made major inroads in mining and renewables across the region. If Latin America doesn’t assert control over its own supply chains, it risks repeating old patterns, being rich in resources, but poor in outcomes.
That doesn’t have to be the story.
There’s an opportunity here, and it’s larger than energy. If the region plays its cards right, by empowering cities, aligning capital, and insisting on inclusive growth, it could not only drive the clean energy transition, but reshape its place in the global economy. Latin America doesn’t need to mimic Silicon Valley or Shenzhen. It can chart its own path.
The world is watching. What happens next is a matter of imagination, coordination, and will.
Post by Adrian G. Rivodeaux, Founder at Luz LATAM
@adrianrivodeaux
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