Future of Power Systems

Advancing Latin America's Power System Transformation

Community Report, October 2025

In collaboration with Interamerican Development Bank and the Latin American Energy Organization (OLADE)

Forward-looking regulation, innovative finance mechanisms, advanced technologies  and regional cooperation are key to driving power system transformation in Latin America.

Latin America and the Caribbean generate nearly 70% of their electricity from clean sources  — one of the highest shares globally. Yet, rapid demand growth, climate risks, and underinvestment in grids and enabling infrastructure threaten to slow progress. To fully harness the region’s renewable potential, power systems must modernize, become more resilient, and deepen regional integration.

About the Report

Throughout 2025, the World Economic Forum convened a working group of more than 50 leaders from government, finance, utilities, and technology to identify solutions. This report highlights their collective findings, from regulatory reforms and innovative financing to advanced technologies and cross-border cooperation. . It presents a series of actionable recommendations to unlock investment, strengthen national power systems, and accelerate regional integration as key drivers of a secure, sustainable, and inclusive energy future.

Summary of solutions to accelerate power system transformation in LAC: 

Improve coordination and holistic, long-term planning

Align grid infrastructure planning with national energy, climate and environmental policy objectives.

Foster greater predictability and cost recovery

Establish a stable and transparent regulatory framework that builds investor confidence and enables cost recovery for grid investments.

Supportive policy-making and incentive mechanisms

Develop targeted incentive mechanisms, policy support and regulatory frameworks to promote investment in advanced technologies and grid modernization

Streamline permitting and administrative processes

Accelerate grid project deployment by promoting predictable, sound and agile permitting and approval processes.

The recommendations outlined in the report can enable Latin American stakeholders to create a conducive environment for power system transformation across the region.

The LAC power sector holds unparalleled potential for a clean energy future, but realizing it will require decisive action across grid modernization, investments, and regional integration. 

Future of Power Systems

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