South America stands at a critical turning point in its clean energy journey, with the potential to achieve nearly 100% renewable power generation by 2050, according to the Regional Energy Transition Outlook South America released by the International Renewable Energy Agency (IRENA) at the United Nations Climate Conference (COP30) in Belém.
The report highlights that despite its vast renewable resources, South America currently attracts only USD 58 billion in annual investment, representing a modest 2.5% of the global total of USD 2.4 trillion in 2024. To meet its decarbonisation and electrification goals, the region must scale up investment to USD 500 billion per year through 2050, covering both infrastructure projects and end-use applications.
Economic Upside Outweighs Transition Costs
IRENA’s findings emphasize that accelerating the energy transition would deliver significant economic and social returns. Under the agency’s decarbonisation pathway, South America could see an additional 1.1% annual GDP growth between 2023 and 2050 and generate over 12 million new energy sector jobs.
“By 2050, renewables could power nearly all of South America, but only with stronger grid connections and major investment to electrify homes, transport, and industry,” said Francesco La Camera, Director-General of IRENA. “The shift opens huge opportunities to build resilient local supply chains, boost manufacturing, and create high-quality jobs in renewables, grids, and clean technologies.”
Global Momentum, Regional Leadership
Globally, a record 582 GW of new renewable capacity was installed in 2024, surpassing fossil fuel investments for the first time. South America contributed 23 GW to that total, reinforcing its position as one of the world’s most cost-competitive renewable energy regions.
“As oil and gas jobs decline, clean energy employment will more than make up the difference,” La Camera noted. “This transition will strengthen energy security, reduce fossil fuel dependence, and improve trade balances — a once-in-a-generation opportunity for green industrialisation and inclusive growth.”
Renewables to Power 98.5% of Electricity by 2050
According to IRENA, the region’s power sector is already undergoing a decisive transformation, with the potential to generate 98.5% of electricity from renewables by 2050. Achieving this target will require adding up to 55 GW of renewable capacity annually, more than double the current pace, driven primarily by solar and wind expansion.
However, the report cautions that maintaining energy reliability will demand substantial investments in energy storage, grid infrastructure, and back-up capacity. It also calls for cross-border interconnections, integrated electricity markets, and regional coordination to optimise energy flow and reduce system stress.
Seven Strategic Actions for a Unified Energy Future
To fully harness the continent’s renewable potential, IRENA has proposed seven key regional actions:
- Strengthening grid interconnections
- Establishing integrated electricity markets
- Developing solar and wind supply chains
- Advancing green hydrogen and sustainable biofuels
- Promoting industrialisation and energy efficiency
The Regional Energy Transition Outlook—developed in collaboration with the Inter-American Development Bank (IDB), Latin American Energy Organization (OLADE), and Economic Commission for Latin America and the Caribbean (ECLAC)—covers 13 South American nations. It serves as a guidance framework for policymakers and private investors, aligning national energy strategies with long-term sustainability goals and global climate commitments.
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