Energy transition in Latin America: Towards is the region headed?

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Dr Lira Luz Benites Lazaro, University of São Paulo, Brazil & Visiting Fellow, Anthropology Department

In Latin America is understood that energy transition is a complex process than just a change of energy regime, in this case from a fossil-dependent energy matrix to one centred on renewable energies. The Latin American energy matrix is represented by 10% of renewable sources, and fossil fuel dependence was 67% in 2019, while in Europe is 74%, and 87% in the Asia Pacific, according to the International Energy Agency (IEA). In the electricity generation matrix (which represents 19% of the world's final energy consumption), fossil fuel dependence is 30% approximately in Latin America, compared to 38% in Europe and 71% in Asia-Pacific.

However, Latin America faces severe problems related to the sustainability of its economic development model and the means it relates to the energy sector. On the one hand, many countries depend on oil and gas income to finance their development, and consequently, there are strong subsidy policies addressed to this sector that function as an obstacle to achieving carbon neutrality in 2050. On the other hand, public policies implemented over the last decade around auctions to supply renewable energy, have not stimulated local productive and technological development, but rather have led to another source of technological dependency that is based on the transfer of turn-key projects in solar and wind technologies to large multinational companies. This situation represents obstacles to the energy transition to boost a sustainable development model to reduce inequality in the region.

In this seminar, Lira will discuss the tensions between the energy transition processes underway and countries whose economic model depends on oil incomes obtained through national-owned companies, and if the ongoing energy transitions are contributing to sustainable development goals.

Lira develops research on the political and social dimensions of climate change, responses of social actors regarding climate change, climate policy analysis, energy policy analysis, energy transitions, just energy transitions, water-energy-food nexus governance, and participatory processes. Areas of research include social sciences and interdisciplinary perspectives. The most recent research project examines governance and security of water-energy-food nexus, and water-energy-food nexus and climate change in urban areas, emphasizing its socio-political dimensions while discussing the role of international organizations, regional organizations, and national and subnational actors in the contemporary global environmental crises.