Latin America and the Caribbean (LAC) began 2026 with a strong rebound in electricity production. During January, the region generated 171 TWh, representing a 9.6% increase compared to the previous month. This growth was driven primarily by greater hydropower availability following the easing of hydrological constraints across regional power systems, according to the latest Monthly Electricity Generation Report published by the Latin American and Caribbean Energy Organization (OLACDE).<\/p>\n
The technical report confirms that hydropower remains the backbone of the regional electricity supply, accounting for 44.5% of the energy mix. This performance optimized the operation of the generation fleet, partially displacing higher-cost thermal plants and putting downward pressure on the system\u2019s average marginal cost.<\/p>\n
The Strategic Role of Natural Gas<\/strong><\/p>\n At the same time, the fossil-fuel thermal fleet maintained a significant 31.3% share of total generation. Within this segment, natural gas strengthened its position as the dominant fuel, accounting for 23.8% of regional generation, reaffirming its role as the principal flexible resource for load following, operational backup, and the provision of ancillary services in systems with high penetration of variable renewable energy sources.<\/p>\n The OLACDE publication also highlights the seasonal vulnerability of renewable energy sources. In January, solar generation declined by 30%, geothermal generation by 36%, and wind generation by 11% compared to December 2025. According to the organization\u2019s analysts, this trend underscores the urgent need for dispatchable technologies capable of balancing grid intermittency with greater precision.<\/p>\n On a year-over-year basis, the regional electricity market posted more moderate growth, with generation increasing 1.2% compared to January 2025. The expansion was led by hydropower, which contributed an additional 10.8 TWh, offsetting the decline in solar generation, which reduced overall output by 11.2 TWh.<\/p>\n Global Leadership in Sustainability<\/strong><\/p>\n OLACDE\u2019s assessment positions LAC at the forefront of global sustainability. The region\u2019s renewable share reached 66% in January, driven by 12 of its 27 member countries that exceeded this average. Paraguay led the ranking with a 100% renewable electricity matrix, followed by Costa Rica (97.8%), Uruguay (96.5%), Ecuador (91.6%), Belize (90.9%), Colombia (88.7%), Brazil (88.5%), and Venezuela (87.7%).<\/p>\n January\u2019s results reflect an energy model whose stability increasingly depends on the strategic coexistence of conventional hydropower, the flexible support provided by natural gas, and the continued expansion of non-conventional renewable energy sources. This synergy remains essential to ensuring reliability, affordability, and sustainability across the region\u2019s power systems.<\/p>\n","protected":false},"excerpt":{"rendered":" The region reached 171 TWh in January 2026, maintaining an energy matrix composed of 66% renewable sources, while natural gas consolidated its role as a strategic resource for operational support and flexibility.<\/p>\n","protected":false},"author":1,"featured_media":33659,"menu_order":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"categories":[252,26],"tags":[],"class_list":["post-33658","noticias","type-noticias","status-publish","has-post-thumbnail","hentry","category-news","category-uncategorized"],"acf":[],"yoast_head":"\n