CELAC and OLADE launch regional strategy for clean energy interconnection

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The Latin American and Caribbean Energy Organization (OLADE) and the Community of Latin American and Caribbean States (CELAC) presented a Regional Indicative Plan for Electrical Interconnection on June 17 in Montevideo, outlining a long-term strategy to strengthen the region’s energy integration by 2040.

The initiative, developed in collaboration with the European Union through the Euroclima program and implemented by GIZ, identifies key electrical corridors aimed at shaping the future of energy connectivity across Latin America and the Caribbean. The plan includes 16 infrastructure projects focused on expanding cross-border electricity exchange.

According to technical estimates, the program requires an initial investment of around US$3.5 billion by 2040, with projected payback periods of just two to six years, making it a highly efficient investment. The plan aims to achieve an optimal interconnection capacity of 5,000 megawatts, significantly reducing carbon dioxide emissions and dependence on fossil fuels through the exchange of clean energy between neighboring countries.

Officials reported that the investment would generate a benefit-cost ratio of approximately 10 to 1, with estimated net economic gains ranging between $1 billion and $5 billion annually, depending on the level of regional electrification. These gains are expected to come from more efficient, secure, and lower-cost energy distribution across borders.

Source: Wikipedia