Boosting Efficiency in Latin America
Delivering affordability, security and jobs to advance people-centred energy transitions
IEA (2023), Boosting Efficiency in Latin America, IEA, Paris https://www.iea.org/reports/boosting-efficiency-in-latin-america, License: CC BY 4.0
Countries around the world are facing an energy security and affordability crisis affecting households, businesses and public budgets. In Latin America, household expenditure on energy services is second only to food. On average, the share of household budget for energy ranges between 7% and 9% of income – and up to more than 24% for the poorest households. As governments urgently implement measures to protect citizens and secure their economies, it is important to consider short- and long- term solutions to ease existing pain and reduce risks over time. While much attention focuses on securing energy supplies, it is equally important to take a hard look at the role of more efficient and flexible demand in securing affordable, reliable energy.
There are several reasons for this. First, one of the fastest and cheapest options for short-term emergency situations is to reduce demand. Second, investments in more efficient technologies and practices can reduce risk over time while improving access to energy services, saving money and supporting efficient, less costly energy systems. Third, managing demand by improving efficiency and making loads more flexible is key to cost-effectively meeting decarbonisation goals.
Decades of policies and programmes have delivered energy savings around the world. As a result, energy systems are more resilient, bills are lower, and public budgets feel less pressure than they would have without these efforts. This report looks at energy efficiency and demand management policies and programmes across Latin America. It presents evidence of the results of these efforts on improving living standards, public budgets, energy security and employment, and provides a view on the opportunities to expand these benefits and support just energy transitions.