Despite electrification rates of almost 98 per cent, Latin America continues to face significant disparities in energy access, particularly between urban and rural communities.

Remote areas in the Amazon basin and Andean highlands remain underserved, creating opportunities for decentralised renewable energy (DRE) solutions such as solar systems with battery storage and micro-hydropower.

The International Renewable Energy Agency (Irena), Global Energy Alliance and Practical Action recently brought together participants from Bolivia, Brazil, Colombia, Ecuador and Peru in Peru for a knowledge exchange workshop focused on using renewable energy to support rural livelihoods.

Held under the Global Initiative on Transitioning Remote Communities to Renewable Energy, the three-day workshop examined how clean power can support productive activities including agriculture, agro-processing, irrigation, cold storage, carpentry and other forms of local manufacturing.

Participants highlighted that providing electricity alone does not automatically deliver economic transformation.

Renewable energy systems need to be integrated into local value chains and supported by technical assistance, skills development and enabling public policies to translate electricity access into sustainable economic opportunities.

One example presented was a solar-powered plantain processing facility in the indigenous community of Soledad, Peru.

The project uses 56 rooftop solar panels connected to battery storage, replacing diesel generators and reducing operating costs and emissions.

With a capacity of 32.66 kilowatt-peak, the system provides reliable electricity for productive activities, including the processing of plantains into dehydrated chips for export to European markets.

The facility has become an important source of sustainable income for about 240 indigenous families.

Another example came from Ecuador’s Amazon, where solar-powered boats are improving mobility for communities in Achuar territory.

Previously dependent on imported gasoline, residents can now use solar-powered vessels to travel along rivers for education, commercial activities, access to urban centres and rainforest monitoring.

Solar charging stations also provide electricity for lighting and internet services in indigenous villages, helping reduce reliance on fossil fuels while improving connectivity and livelihoods.

However, workshop participants noted that renewable energy development in remote communities remains heavily focused on solar, with relatively limited attention given to micro-hydropower despite Latin America’s significant hydropower potential.

Wind energy also received limited attention, prompting calls for greater diversification of renewable technologies.

Expanding the range of clean energy solutions could improve the resilience of rural energy systems while supporting different local economic and environmental conditions.

The workshop also identified limited private-sector participation as a barrier to scaling renewable energy projects in rural areas.

Participants said governments have an important role in creating investment incentives and financing mechanisms that can encourage private-sector involvement and more sustainable partnership models.

The discussions underscored that closing Latin America’s remaining energy access gap will require more than expanding infrastructure.

Linking renewable electricity with local economic activities, community needs, skills development and supportive policies will be critical to ensuring that clean energy delivers lasting social and economic benefits. -OGN/TradeArabia News Service