Green power markets in selected Latin American countries: Experiences and trends

Latin America is undergoing a significant transformation of its electricity systems as countries strive to advance their energy transitions through cleaner technologies, new business models, and strengthened policy frameworks. Despite long-standing reliance on hydropower, the region has experienced both a rapid expansion of non-hydro renewable capacity and, unexpectedly, a parallel growth in thermal generation. However, comparative understanding of how renewable energy policies and emerging green power markets have evolved across the region remains limited. This paper addresses this gap by analyzing the emergence and evolution of green power markets across twelve Latin American countries, examining renewable energy policies, green electricity products, and the mechanisms that shape market development. We compare policy design, investment incentives, and the deployment of wind, solar, biomass, and geothermal technologies, as well as the role of auctions, fiscal measures, grid-access regulations, and energy attribute certificates (EACs). Our findings reveal convergence in the types of policy instruments adopted, but substantial differences in their implementation and green power market development. Overall, market development remains limited and fragmented. The analysis suggests that deeper renewable integration will require clearer long-term policy signals, stronger regulatory coordination, and incentives that mobilize both public and private actors. EAC systems present an opportunity to complement this transition, but their effectiveness depends on regulatory stability, transparency, and market participation.