Heliyon (Oct 2024)
A comparative analysis of electricity generation in Latin America and the Caribbean using multivariate techniques
Abstract
This paper employs a new framework based on internationally available indicators to conduct a comparative analysis of electricity generation among Latin American and Caribbean (LAC) countries, using data from 2021, the most recent available. Two multivariate techniques, cluster analysis and factor analysis, are used in this study. In recent years, electricity generation in the region has increased significantly, largely driven by the economic growth of these nations. A notable trend is the rising contribution of renewable energy sources, which accounted for 55 % of total generation in 2021, thanks to the region's exceptional climatic and geographic conditions. However, the absence of overarching supranational policies has led to significant disparities in energy strategies across these countries, both in design and implementation. Among the 20 LAC countries studied, 35 % do not reach a 50 % share of sustainable electricity generation. Understanding how these countries group regarding sustainable electricity generation is essential for identifying their key characteristics. The analysis yields three fundamental conclusions: first, the selected indicators are highly effective in achieving the study's objectives; second, the principal differences between the identified groups are largely influenced by each country's level of development and reliance on renewable energy sources; and third, from a policy perspective, there is a clear need for a supranational framework to support the national efforts and strategies being independently pursued by these countries, particularly regarding the design and implementation of energy policies. This paper contributes to bridging the gap in the international academic literature concerning sustainable electricity generation in LAC region, and it aligns with studies focused on the analysis of renewable energy sources and sustainable development.
