Sustainable, reliable, and diversified energy for Latin America and the Caribbean
At the IDB, we are committed to supporting countries across Latin America and the Caribbean in building reliable, affordable, secure, sustainable, and resilient energy systems aligned with their development priorities and natural endowments.
Our objective is to help countries expand opportunities for growth, strengthen competitiveness, and improve living standards through better energy services, stronger institutions, and sound sector policies.
In this context, the IDB leads the preparation of energy policies, strategies, operational guidelines, and sector programs; generates analytical work, evidence, and knowledge products on key issues facing the sector; and provides specialized technical support to operations and activities in borrowing member countries.
Energy plays a crucial role in economic and social development and is indispensable in the battle against climate change. It underpins most human activities, making it an integral part of our daily lives. Energy services not only power our personal lives but also function as crucial inputs within the production and supply chains of various businesses. The quality, or a lack thereof, of these services can significantly impact a company's cost structure and, subsequently, its competitiveness within the business ecosystem.
Latin America and the Caribbean has the cleanest electricity matrix worldwide, but the process of decarbonization needs to be accelerated. The participation of renewable sources in the region's electricity matrix reached 61%, a figure higher than that of any other region, and nearly twice the global average, which stands at 29%.
The energy transition must be just and sustainable. The challenge of this transition lies in the massive adoption of renewable energy sources in the electricity matrix, such as solar and wind. This involves managing their variability and intermittency while always ensuring service security and reliability. At the same time, the decarbonization process presents an opportunity for economic transformation. This can be achieved through the creation of new jobs, the emergence of new industries, and by reducing the exposure of countries in the region to price shocks in energy commodities.
Achieving universal coverage for electricity services remains an outstanding challenge and will be fundamental to ensuring a just transition. While the region has made significant efforts over the past decades to bridge the gap between urban and rural areas and to increase access to electricity services, much work remains to attain universal coverage. Nearly 17 million people still lack access to electricity services across countries in the region.
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.
Ensure availability and sustainable management of water, sanitation and solid waste services for all.
Improve people's quality of life by implementing transportation and infrastructure initiatives.