A series of projects in the fields of renewable energy such as wind, solar, hydroelectric and lithium mining, as well as electric vehicle infrastructures built by Chinese companies in Latin America, have generated economic and social benefits in addition to supporting the energy transition process.
Green energy cooperation between China and Latin America and the Caribbean (LAC) has a solid foundation and complementary advantages, and is becoming a new impetus for comprehensive and win-win cooperation between both sides.
This was highlighted by officials, diplomats and academics from China and Latin American and Caribbean countries at the first China-Latin America and Caribbean Development Forum, held in late August in Beijing.
ADDITIONAL ADVANTAGES
Latin America and the Caribbean have immense renewable natural energy resources, such as solar energy in northern Chile, southern Peru and the Caribbean region, and wind energy in countries such as Brazil, northern Colombia and Mexico, in addition to hydroelectric resources in Paraguay and Costa Rica.
For Gloria Dolores Alvarenga, Director of Integration, Access and Energy Security at the Latin American Energy Organization (OLADE), this potential "puts us in a favorable position to assume global leadership in the transition to clean energy."
However, "achieving this leadership depends on the capacity of the countries in the region to cooperate, innovate and attract investments that promote the development of these resources," said the director of OLADE, at the forum organized by the Latin American Institute of the Chinese Academy of Social Sciences and the Latin American and Caribbean Economic System.
"China's help will be absolutely essential," said Salvador Moncada, Honduras' ambassador to China, adding that part of Honduras' hydroelectric infrastructure was built by Chinese companies, which are contributing to the Central American country's national sustainable development plan.
Among the hydroelectric plants in Honduras is the Patuca III plant, whose total installed capacity is 104 megawatts (MW), and annual electricity generation is 336 million kilowatt-hours (kWh).
In addition to Honduras, hydroelectric, wind and solar projects with Chinese investment have already been established throughout the region.
The Cauchari solar plant, located in the Argentine province of Jujuy (north) and the largest of its kind in Latin America, the Belo Monte hydroelectric plant in the north of the state of Pará to Rio de Janeiro in Brazil, as well as the Punta Sierra wind farm in northern Chile, are among the projects.
GREATER CHINESE PRESENCE
According to Alvarenga, a series of projects in the fields of renewable energy such as wind, solar, hydroelectric and lithium mining, as well as electric vehicle infrastructure built by Chinese companies in LAC, have generated economic and social benefits in addition to supporting the energy transition process, thereby injecting a new impetus into global green development.
According to official Brazilian data, the percentage of electric vehicles sold in the country rose from 2.5 percent in 2023 to 5 percent in 2024. The goal is to double the number of electric cars sold by 2025.
However, the main obstacle to the development of green transport is the capacity to distribute electricity supply points in Brazil, given the enormous size of the country.
At the end of August this year, the Chinese company BYD, the world's leading manufacturer of electric vehicles, announced that it will begin producing hybrid models in Brazil from the first half of 2025, at its factory in Camaçari (Bahia state, northeast).
"China is one of the countries that has the most complementarity with Brazil," said Pedro Silva Barros, a researcher at the Institute for Applied Economic Research (IPEA), who is linked to the Brazilian presidency.
According to Barros, Brazil currently needs between $130 billion and $160 billion annually for ten years for the ecological transition, and considers China to be an "important partner."
Alvarenga, in agreement with Barros, considered that Chinese technology and investments are contributing to materializing the transition towards a green energy infrastructure.
"China is investing in EV infrastructure in Latin America. A notable example is Great Wall Motors, which is developing the infrastructure needed for EV growth in the region, including charging stations and related technologies," Alvarenga said.
PROMISING PROSPECTS
"Green energy will be one of the main directions of cooperation between LAC and China, as LAC is the greenest region on the planet," predicted Alvarenga, who expects renewable energy cooperation with China to become deeper.
"We need strategic allies, such as China, to advance LAC's efforts. China has become a key player and partner for the region. We must continue and increase this spirit of cooperation that allows us to work together to create an open world economy for the benefit of our peoples," said Alvarenga.
In 2021, with the aim of deepening cooperation among Belt and Road Initiative partners in the green field, more than 20 countries including China, Chile and Colombia jointly launched the Belt and Road Partnership Initiative for Green Development.
The joint statements on establishing and deepening a comprehensive strategic partnership between China and Brazil, Mexico, Argentina and other countries highlight the importance of strengthening cooperation in areas such as climate change and clean energy.
Following the establishment of diplomatic relations between China and Honduras, the two countries signed the Belt and Road cooperation agreement, which has "opened up new opportunities for cooperation in the energy sector under the initiative," said the Honduran ambassador.
According to the Central American diplomat, the initiative can be interconnected with his country's "Master Plan for the Intelligent and Renewable Energy Matrix," and added that China maintains a non-discriminatory attitude in matters of cooperation, which he described as something "very important" for his country and the development of the Global South.
"With the support of strategic partners such as China, we can develop an energy matrix that not only meets our internal needs, but also contributes to the stability and sustainability of the regional energy system," Moncada said, adding that Honduras has proposed the goal that "by 2026, 70 percent of our energy will come from renewable sources."
For his part, the IPEA researcher declared his optimism about the prospects for collaboration, saying that China has an important and fundamental role in green energy cooperation, "both in technological issues as well as in governance."
