Distributed energy systems are transforming the electricity landscape in Latin America and the Caribbean, shifting power from centralized utilities to individual consumers who now generate their own clean energy—mostly through solar panels—and even sell it back to the grid. This decentralized model has grown rapidly: from just 1 GW of installed capacity in 2017 to nearly 32 GW by 2023, with Brazil leading at 83% of the region’s total. Countries such as Mexico, Puerto Rico, the Dominican Republic, Colombia, and Chile are also expanding their distributed generation sectors. These systems offer multiple benefits: faster deployment, lower maintenance costs, more resilient energy supply, and up to 10 times more job creation per kilowatt compared to large-scale solar farms.
Distributed energy is also seen as a tool to reduce energy poverty, especially in remote or underserved communities. Initiatives in Brazil and Colombia have introduced community-led energy projects, fostering energy independence and citizen participation. However, upfront costs remain a barrier. Experts call for improved financial instruments, subsidies, and inclusive policy frameworks to make distributed energy accessible to vulnerable populations. If trends continue, distributed generation is expected to become Brazil’s second-largest electricity source by 2029. Combined with affordable battery storage, the region is moving closer to an energy model that is democratic, resilient, and climate-aligned.

Link: https://dialogue.earth/en/energy/distributed-energy-is-driving-latin-americas-energy-transition/