Opportunities for the Development of Gas in Latin America and the Caribbean 03

Although the power sector in Latin America and the Caribbean as a whole is characterised by lower-emission forms of generation, with approximately 66% of installed capacity coming from renewable sources in 2024, several countries in Central America and the Caribbean exhibit a high dependence on fossil fuels. In the Caribbean, countries such as Grenada, Haiti, Barbados and Cuba continue to rely primarily on petroleum products for electricity generation. In Central America, this dependence is also significant, particularly in Nicaragua, Belize and Honduras. This continued reliance reflects a combination of structural factors, including relatively low electricity demand, limited land availability for large-scale renewable projects and persistent resilience challenges associated with hurricanes and tropical storms, which constrain the deployment of new infrastructure and reinforce the role of conventional thermal generation in ensuring supply security.