Latin America is going dark: energy crisis causes unprecedented blackouts and droughts

Latin America is facing an unprecedented energy crisis , marked by prolonged blackouts, historic droughts and power grids on the brink of collapse.

From power outages of up to ten hours a day in Ecuador , aggravated by the lack of supply from Colombia, to blackouts of twenty hours in Cuba , which demonstrate the obsolescence of its infrastructure, the region is experiencing a weak energy system.

Although the energy crisis affects Latin American countries in different ways , there is a pattern that is repeated and aggravates the situation: the lack of investments and the impact of the climate crisis.

Ecuador, blackouts scheduled for ten hours

Ecuador is experiencing an energy crisis due to its dependence on hydroelectric plants, which account for 72% of the national energy supply.

Droughts have led the country to implement scheduled blackouts of up to ten hours a day since September, a situation that is expected to last until January.

Colombia, which used to export electricity to Ecuador, stopped doing so in October due to its own energy crisis. So far, Ecuador has only been able to rent a 100-megawatt floating plant from Turkish company Karpowership, which represents less than 10% of the more than 1,000-megawatt deficit the country faces.

Cuba is also suffering from a deep energy crisis, the worst in years, with deficits of up to 50%. This means that five out of ten light bulbs in the country go out due to the lack of electricity. In some municipalities, blackouts last up to twenty hours a day.

The generation network is obsolete, with seven thermal power plants built more than four decades ago, of which seven units were recently out of service due to breakdowns.

Consultant Emilio Romero estimates that 10 billion dollars will be needed to modernize the system. The director general of Electricity of the Ministry of Energy and Mines, Lázaro Guerra, told EFE that this figure was “not unreasonable,” although he did not provide his own data.

In Brazil, the worst drought in 74 years has significantly reduced the level of hydroelectric dams, which provide most of the power. The three largest hydroelectric plants in the Amazon (Belo Monte, Santo Antonio and Jirau) are operating at between 3% and 10% of their capacity. In response, the government has activated thermal plants fuelled by gas and diesel.

The share of hydroelectric plants has fallen from 74.5% in March to 43.5% in October, while thermal generation has increased from 5.6% to 18.7%. However, the government rules out the possibility of blackouts and does not see the need to reinstate daylight saving time to save energy.

Mexico, energy dependence on the United States

Mexico suffered significant power outages in May due to a heat wave that increased energy demand and affected 18 of the country’s 32 states.

This situation highlights the vulnerability of the energy system, which depends on hydroelectric generation and natural gas, 70% of which is imported from the United States.

The new president, Claudia Sheinbaum, has been criticized for prioritizing hydrocarbon energy over cleaner, more sustainable sources.

In Argentina, the Government of Javier Milei has announced the ‘Summer Plan 2024-2025 ‘ to avoid blackouts during the summer season. The electrical system is “on the verge of collapse” due to the lack of investment and maintenance in the last two decades.

Venezuela faces daily power outages , especially in regions far from Caracas. The government blames the opposition, even though the military keeps the facilities under surveillance.

Experts attribute the problem to poor management and lack of maintenance. Despite the crisis, Venezuela is seen as a key country for global energy stability, since it has the largest crude oil reserves in the world and one of the largest gas reserves.

In Colombia, the level of reservoirs is 16 points below the average, which has led the Ministry of Energy to activate thermal generation and launch a plan of anti-crisis measures. “There is no risk of a power blackout,” he says.

Bolivia no longer sends gas to Argentina

Bolivia, which last year received $ 875 million from gas exports to Argentina , has not sent gas since last September due to the decline in its reserves.

In order to increase energy reserves, one hundred million dollars are being invested in exploration and exploitation in the Santa Cruz region, with the ultimate goal of doubling the electricity generation capacity to 6,773 megawatts by 2033.

Chilean resilience thanks to renewables

Chile , for its part, remains resilient in the energy crisis thanks to its installed solar and wind energy capacity, but faces challenges in stabilizing its supply due to its dependence on Argentine natural gas.

Meanwhile, Peru is facing energy supply problems in its rural areas, where blackouts mainly affect Andean and Amazonian communities, limiting access to basic services.

In Honduras , high electricity costs and a lack of adequate infrastructure continue to affect thousands of households, with intermittent power outages intensifying in the most vulnerable areas.

At the end of 2023, Nicaragua’s electricity generation capacity was 1,648.7 MW, with a maximum demand of 808.07 MW.

Installed capacity includes 888.3 MW from non-renewable sources and 760.4 MW from renewable sources (hydroelectric, geothermal, wind, biomass and solar).

The country has great hydroelectric potential, but has exploited less than 5%.

Uruguay, a country with a predominantly renewable energy matrix, has managed to avoid blackouts, but suffers from the increase in electricity import prices from Brazil during periods of drought.

And in the case of Puerto Rico , one of the challenges is the recovery of the electrical infrastructure after the hurricanes, which is added to the frequent blackouts due to an aging and poorly maintained network. EFE