Energy Transition in Latin America: The 10 Trends for 2025

As 10 tendências da transição energética na América Latina em 2025 incluem avanços em renováveis, hidrogênio verde e veículos elétricos, com o Brasil liderando o setor. A região se destaca como modelo de descarbonização e inovação sustentável.

The energy transition in Latin America remains a central theme for the sustainable development of the region in 2025. With technological advancements, regulatory changes, and increasing interest in renewable sources, Latin American countries are becoming key players in the global clean energy scenario. Let’s explore the ten main trends shaping this transformative moment.

1. Expansion of Green Financing

Green financing is playing a crucial role in the energy transition. According to data from the Inter-American Development Bank (IDB), funding for sustainable projects in the region surpassed $28 billion in 2024, a 15% increase compared to the previous year. Green bonds issued by companies and governments in Brazil, Chile, and Colombia are channeling resources into renewable energy and sustainable infrastructure, attracting global investors. The Green Climate Fund has also announced new investments for projects combining clean energy with social impact, such as electrification in remote areas.

2. Regional Integration of Energy Markets

Collaboration among Latin American countries is intensifying. Projects for electrical interconnection are being promoted to optimize the use of natural resources and ensure greater stability in energy supply. In 2025, one of the key milestones will be the consolidation of integrated grids between Brazil, Argentina, and Uruguay. This initiative also aims to harmonize regulations and attract investments that benefit the entire region.

3. Acceleration of Local Electric Vehicle Production

The production of electric vehicles is rapidly expanding in the region. Brazil and Mexico lead the sector, with international companies investing in local factories to reduce costs and meet growing demand. In 2025, a significant increase in production is expected, supported by government incentives focused on the electrification of urban fleets, such as buses and light-duty trucks.

4. Brazil’s Role as a Regional Leader

Brazil remains a leader in Latin America’s energy transition, with over 80% of its electricity matrix derived from renewable sources. The country also stands out for its investments in solar energy, which grew by 40% in 2024, and its leadership in biofuels, with record production of ethanol and biodiesel. The COP30, to be held in Belém in 2025, underscores Brazil’s role on the global stage.

5. Green Hydrogen: The Fuel of the Future

Green hydrogen projects are growing in countries such as Brazil, Chile, and Colombia. These nations are developing production and export hubs targeting European and Asian markets. In 2025, new projects are expected to reach the final investment decision phase, solidifying the region as a global supplier of this clean technology.

As 10 tendências da transição energética na América Latina em 2025 incluem avanços em renováveis, hidrogênio verde e veículos elétricos, com o Brasil liderando o setor. A região se destaca como modelo de descarbonização e inovação sustentável.

6. Expansion of Solar and Wind Energy

Solar and wind energy continues to expand, with more than 25 GW of additional capacity expected in 2025. In Brazil, solar energy leads the growth, while Chile focuses on projects in the Atacama Desert, which boasts the highest solar radiation on the planet. However, transmission infrastructure remains a challenge, requiring investments to avoid bottlenecks.

7. Advances in Energy Storage

Energy storage is receiving special attention, with the large-scale deployment of lithium-ion batteries. These systems allow greater integration of renewable sources and increased reliability of power grids. Technologies such as hydrogen storage are also under development, particularly in pilot projects in Brazil and Argentina.

8. Offshore Wind Energy on the Rise

Offshore wind energy is an emerging sector in Latin America. Brazil is leading with the approval of regulations encouraging the installation of offshore wind farms. The first projects are expected to become operational in the coming years, leveraging the significant potential of coastal winds.

9. Argentina’s Initiative in Lithium

Argentina is capitalizing on its lithium reserves, essential for battery production. Multinational companies have partnered with the government to explore these reserves, while new laws create a more attractive environment for foreign investments. Lithium is seen as one of the country’s greatest opportunities for economic growth and energy transition.

10. The Solar Potential of the Atacama Desert

The Atacama Desert in Chile is one of the best locations in the world for solar energy generation. In 2025, new projects are expected to expand the installed capacity in the region, while initiatives to improve transmission and storage infrastructure aim to resolve existing bottlenecks.

A Future of Opportunities

The energy transition in Latin America is evolving rapidly, bringing challenges and opportunities. With a combination of abundant natural resources, technological advancements, and financial support, the region has the potential to lead the global energy revolution. Success will depend on the ability of its countries to cooperate, innovate, and address social and economic challenges in an integrated manner.

Source: Exame