The potential for transforming the electrical systems of Central America, Mexico and Colombia was the subject of a study presented by PSR to the Inter-American Development Bank (IDB) in October, in Costa Rica. The event was part of the IDB’s America at the Center initiative, which aims to strengthen regional energy integration by increasing the share of intermittent renewable sources and reducing the impacts caused by climate change.

During the presentation, given by Weslly Morais, Silvio Binato and Amanda Fernandes, members of the PSR team, the results of the study Vision 2050 for the Central American Regional Electric System (SIEPAC) were discussed, which explores scenarios for expanding generation and interconnection between countries in the region. The analysis highlights several possibilities for the future of Central America’s electricity systems, highlighting how increased integration can increase the share of renewable sources, especially solar and wind, taking advantage of local potential. The need to reinforce the countries’ internal transmission grids to ensure the viability of new interconnections was also emphasized.

The implementation of flexible technologies, such as batteries and natural gas plants, will be essential to support the increased share of solar and wind energy, allowing up to 45% of Central America’s electricity demand to be met by these technologies by 2050 in some scenarios.

In addition to analyzing generation expansion scenarios, examples of successful integration in other parts of the world, such as Europe, India, Africa, and the United States, were presented. The references serve as a basis for the strategies and investments needed to increase integration between Central American countries and their neighbors.