A Regional Opportunity for Inclusive Prosperity
A new analysis by the International Renewable Energy Agency (IRENA) projects that South America’s shift toward clean energy could lift regional GDP growth by more than one percentage point annually between now and 2050. The report underscores that large-scale deployment of renewables—particularly solar, wind, green hydrogen, and sustainable bioenergy—can create up to 12 million new jobs while enhancing energy security and export diversification. With Latin America already deriving over 60% of its electricity from renewable sources, the challenge is no longer generation but building the transmission, storage, and industrial capacity to turn this advantage into sustainable prosperity.
Balancing Transition and Competitiveness
Countries such as Brazil, Chile, and Colombia are positioning themselves as global leaders in clean energy investment, while emerging economies like Peru and Argentina explore ways to integrate renewables into industrial value chains. Yet, uneven regulatory frameworks, limited access to financing, and outdated grid infrastructure remain persistent barriers. The report stresses that energy transition policies must be coupled with education, innovation, and local manufacturing strategies to ensure that the benefits of decarbonization extend beyond the energy sector. Without these reforms, South America risks remaining an exporter of raw energy resources rather than a producer of high-value green technologies.
Turning Potential into Lasting Growth
The region’s vast natural endowment solar radiation in the Atacama, hydro potential in the Andes, and wind corridors in Patagonia—give it a comparative advantage in renewables. To convert this into long-term growth, governments must coordinate investment in transmission networks, digital infrastructure, and regional energy markets. The IRENA analysis concludes that the energy transition represents not only an environmental imperative but also a structural development opportunity: a chance to redefine South America’s role in the global economy through clean, inclusive, and innovation-driven growth.