Latin America's Energy Sector: A Call for Regulatory Reform

On Tuesday, multilateral bank executives emphasized the need for Latin American countries to address regulatory barriers, improve electrical interconnections, and refine renewable energy project structuring. The aim is to attract the $200 billion in annual investments required for a successful energy transition. The discussions took place during an event in Bogota, organized by the Economic Commission for Latin America and the Caribbean.

Latin America's investment in energy infrastructure lags behind global averages, potentially hampering its capacity to meet climate and energy goals. "The solution lies in policy, because money is not lacking," remarked Felix Fernandez, director for Latin America and the Caribbean at the European Union's Directorate-General for International Partnerships. Andres Rebolledo, executive secretary of the Latin American Energy Organization, further noted the need for adequate regulatory frameworks and balanced public-private investments.

Currently, Latin America dedicates around 3% of its GDP to energy infrastructure, compared to the 5% spent in regions like Europe, Asia, and the Middle East. The European Union is also stepping up its commitments, with plans for $20 billion in renewable energy investments in Colombia alone, where European firms already produce 88% of the renewable energy connected to the national grid.

(With inputs from agencies.)