A comparative advantage of the Latin America and Caribbean region is its large endowment of sources of primary energy, including: large reserves of hydrocarbons; the huge hydroelectric potential of the region’s rivers; and its wind and solar energy potential. IDB offers solutions to develop the LAC region's diverse energy resources.
IDB supports research and pilot projects to test the viability of the best renewable energy ideas, as well as government efforts to diversify national energy matrices through large investments in wind, biofuels, and hydropower.
IDB is exploring opportunities for national and international energy integration throughout Latin America and the Caribbean. The goal is to help neighboring countries to better distribute and commercialize their energy resources as with SIEPAC in Central America.
IDB-financed projects in energy efficiency have proven that the return on investment for efficient lighting and electric motor programs is better than the cost of building new energy capacity.
Ensuring universal access to modern energy services has far-reaching social and economic benefits for society; our region is very close to achieving universal access in electricity. IDB is committed to working with our member countries to connect the last five percent or 30 million people who lack access to electricity.
Latin America and the Caribbean are rich in energy resources including hydrocarbons, hydroelectricity and biofuels. But this wealth is unevenly distributed. Approximately 34 million people lack access to modern electricity services, and fuel imports consume a growing percentage of smaller countries’ budgets. The IDB helps member countries expand the coverage and quality of energy services such as electricity and natural gas. The IDB also finances programs to improve energy efficiency, foster cross-border energy integration, and diversify the energy matrix by sustainably exploiting renewable and non-renewable energy sources.
CURRENT FOCUS AREAS
We finance large-scale wind farms, solar power systems for rural areas, biofuel facilities that co-generate electricity, and programs to promote efficient lighting. We are also helping to retrofit hydroelectric facilities with more efficient turbines and ensuring that new dams and natural gas projects meet strict social and environmental standards.
Projects by Country