Providing electricity to a community is no longer enough. The new challenge facing Latin America and the Caribbean is turning energy access into jobs, productivity, and local economic development.
With this focus, the Latin American and Caribbean Energy Organization (OLACDE) took part in the Knowledge Exchange on Productive Uses of Energy in Latin America, an event organized by the International Renewable Energy Agency (IRENA), with support from Practical Action and the Global Energy Alliance for People and Planet (GEA).
During the event, Gloria Alvarenga, OLACDE’s Director of Integration, Access, and Energy Security, explained how to strengthen cooperation among countries to turn rural electrification into a driver of productive development, social inclusion, and economic resilience.
The forum brought together government representatives, international organizations, and experts from Brazil, Bolivia, Colombia, Ecuador, and Peru, who discussed public policies, financing models, community governance schemes, and technological solutions aimed at fostering the productive use of renewable energy in rural and remote communities.
An agenda that goes beyond electrification.
This gathering is grounded in a clear regional reality. Although Latin America and the Caribbean currently has more than 97.6% electricity coverage, millions of people living in areas such as the Amazon, the Andes, and other rural zones still lack a sufficient supply to drive sustainable economic activity.
The organizers agreed that the concept of Productive Uses of Energy (PUE) marks a new phase in the energy transition: using electricity to generate income, add value to agricultural products, strengthen small rural businesses, and energize local economies.
Gloria Alvarenga warned that between 16 and 17 million people still lack access to electricity, a situation concentrated mainly in rural and indigenous communities. Since 2015, progress toward greater electrification has lost momentum. In regions such as the Amazon, connecting a household through traditional grids can cost up to USD 20,000, which is why adopting new technological solutions is essential. Just to modernize transmission, the region needs between USD 6 billion and 8 billion annually through 2030, yet only USD 3.3 billion was allocated in 2022.
For OLACDE, this exchange reinforces a core strategic priority: ensuring that the energy transition not only expands electricity access but also generates new opportunities for sustainable economic development, helping to mitigate territorial inequalities and strengthening rural communities in the face of social and climate challenges. At the close of the event, a set of policy recommendations will be drawn up to strengthen regional cooperation and inform future strategies on productive energy uses in Latin America and the Caribbean.
