Some LatAm Countries Are Greener Than You Think

We’ll be the first to admit that the wonderful country of Paraguay does not often top our weekly charts. Which makes it such a pleasure to see the small South American country of 7M people leading the pack in this week’s look at Latin American countries as ranked by the share of electricity production that comes from renewable sources.

Paraguay’s secret? Two major hydroelectric dams straddling its borders with neighboring Argentina and Brazil. One of these, the Itaipu Dam, is the world’s 2nd-largest hydroelectric power plant by gigawatts produced. Paraguay uses a portion of the electricity produced by this power plant and the Yacyretá Dam that the country shares with Argentina. It then exports a whole lot of excess energy to Brazil at a controversially discounted rate.

Coming just behind Paraguay is Costa Rica, which has also obtained a remarkable result from a hydroelectric energy sector that provides roughly 80% of its energy. The country has made headlines for running entirely on green energy in recent years, helped by its generous rainfall and lack of defense spending—the military was abolished in 1948 and its budget was put towards social programs and environmental protection. Clearly, given the country now hovers around green self-sufficiency, the plan is working.

Surprisingly, some major fossil fuel exporters—like the oil-rich Andean countries of Ecuador, Colombia, and Venezuela—don’t do too badly for themselves, each obtaining over 60% of their electricity production from renewable sources. This falls ahead of industrial heavyweights like Germany or the United States, and well ahead of regional peers in Argentina or Mexico.

Whether it be the high winds of Patagonia or the Villanueva Solar Park (largest in the hemisphere) located right outside the birthplace of Latinometrics, the region is primed to lead the world in the green transition. Latin America can do more than simply achieve energy self-sufficiency; it can become a net exporter of renewable energy to the world, boosting economic growth and sustainable development all at once.

Already major regional leaders have promoted turning away from fossil fuels towards cleaner alternatives, such as Colombian President Gustavo Petro. But governments and companies must work together to bring Latin America into the green future.

Who knows? Paraguay could even lead us there.