Status of the off-grid renewable energy market in Latin America & the Caribbean

The LAC region has a high overall electrification rate of 97%, yet 18.1 million people remain without electricity and 65 million are underserved. The report argues that off-grid renewable energy solutions are the best fit for at least 40% of this access gap, particularly in rural 'last-mile' communities. While the region possesses vast renewable resources, market growth is hindered by socioeconomic constraints, limited regulatory frameworks for private off-grid actors, and a lack of coordinated data. The document provides detailed country profiles for Haiti, Honduras, and Suriname, highlighting their specific challenges and the potential for productive use of renewable energy (PURE) to drive local economic development.

• Despite a regional electricity coverage rate of 97%, 18.1 million people in LAC lack electricity infrastructure, and 65 million are underserved. Rural areas are the primary focus, concentrating 90% of the unelectrified population.
• Off-grid solutions are estimated to be the most suitable method to address at least 40% of the LAC electricity access gap, with a projected split of 30% mini-grids and 70% standalone systems.
• There is a significant gap between electricity coverage and actual consumption; LAC's per capita consumption of 2,087 kWh is substantially lower than the global average of 3,131 kWh, indicating an affordability and reliability issue.
• Productive Use of Renewable Energy (PURE) is identified as a key driver for economic resilience and sustainability, particularly in agriculture, which represents 52% of rural jobs in LAC.
• The Caribbean region is particularly vulnerable to fuel price volatility and natural disasters, with electricity losses in 2018 totaling 59,886 GWh, highlighting the need for resilient off-grid systems.
• Haiti has the lowest electrification rate in the region at 38.7%, with only 15% of its rural population electrified. The government aims to increase the share of renewable electricity to 50% by 2030.
• Honduras has the second lowest electrification rate in LAC at 80.8%, with rural access at 56.4%. While it is a global leader in solar PV generation, many of its 6.8 MW of off-grid systems still rely on diesel and LPG.
• Suriname's electrification rate is 90.3%, but rural access drops to 72%. The government spends nearly 5.5% of its GDP on electricity subsidies, the highest percentage in LAC.
• Key market barriers for private off-grid companies include unfair competition with national grid tariffs, complex bureaucracy, and a lack of standardized quality frameworks for technology.
• The report recommends that governments adopt 'technology agnostic' policies and implement multi-annual national plans to coordinate rural electrification and avoid project overlap.

APA

Alliance for Renewable Electrification (2021). Status of the off-grid renewable energy market in Latin America & the Caribbean. https://www.renewelec.org/wp-content/uploads/2023/11/Status-of-the-off-grid-renewable-energy-market-in-Latin-America-the-Caribbean-2021.pdf

Chicago

Alliance for Renewable Electrification. Status of the off-grid renewable energy market in Latin America & the Caribbean. 2021. https://www.renewelec.org/wp-content/uploads/2023/11/Status-of-the-off-grid-renewable-energy-market-in-Latin-America-the-Caribbean-2021.pdf.

Wikipedia

{{cite report |author=Alliance for Renewable Electrification |title=Status of the off-grid renewable energy market in Latin America & the Caribbean |date=August 2021 |url=https://www.renewelec.org/wp-content/uploads/2023/11/Status-of-the-off-grid-renewable-energy-market-in-Latin-America-the-Caribbean-2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{allianceforrenewableelectrification2021status, author = {{Alliance for Renewable Electrification}}, title = {{Status of the off-grid renewable energy market in Latin America \& the Caribbean}}, institution = {Alliance for Renewable Electrification}, year = {2021}, month = aug, url = {https://www.renewelec.org/wp-content/uploads/2023/11/Status-of-the-off-grid-renewable-energy-market-in-Latin-America-the-Caribbean-2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }