In January 2026, Latin America and the Caribbean (LAC) generated 171 TWh of electricity, with hydropower remaining the dominant technology. This outcome is associated with greater water availability and a reduction in the system’s hydrological constraints, favoring lower marginal-cost dispatch and the partial displacement of thermal generation with higher variable costs.
Despite the greater hydroelectric contribution, the fossil thermal segment maintained a significant share (31.3% of total generation), led by natural gas, which continues to consolidate its role as a flexibility resource for load following and the provision of ancillary services (reserve and regulation). On a month-on-month basis, regional electricity generation increased by 9.6% compared to December 2025, driven mainly by hydropower; at the same time, declines were recorded in several non-conventional renewable sources (geothermal -36%, solar -30%, and wind -11%).
In the year-on-year comparison, January 2026 stood slightly above January 2025, with a 1.2% increase, reflecting marginal growth in the overall system balance. By source, dispatch patterns were marked by an increase in hydropower generation (+10.8 TWh) and significant declines in solar (-11.2 TWh) and natural gas (-8.0 TWh), resulting in a slightly positive net balance (+1.3 TWh) due to the offsetting effect between increases and reductions.
Finally, the region maintained a predominantly renewable energy matrix, with a renewability index of 66% in January 2026. Of the 27 member countries of OLACDE, 12 exceeded the regional index, led by Paraguay (100%), Costa Rica (97.8%), Uruguay (96.5%), Ecuador (91.6%), Belize (90.9%), Colombia (88.7%), Brazil (88.5%), and Venezuela (87.7%).
