Nuevo Clima: Energy in Transition—The Role of Smart Conventional Energy Systems, Hydrogen, and Lithium-ion Batteries in Latin America and the Caribbean’s (LAC) Energy Future

“Nuevo Clima: Energy in Transition—The Role of Smart Conventional Energy Systems, Hydrogen, and Lithium-ion Batteries in Latin America and the Caribbean’s (LAC) Energy Future,” authored by Japhet Miano Kariuki, offers a compelling perspective on the evolving energy landscape of the region. The chapter underscores the potential for transformative change through emerging energy generation technologies like hydrogen and lithium-ion batteries, paving the way for a sustainable LAC future. The LAC energy landscape is undergoing a profound transformation, primarily driven by the emergence of smart conventional energy systems, which bring forth innovative technologies that promise sustainability and resilience, challenging the reliance on fossil fuels. Pampa Energía S.A., a leading Argentine energy company, exemplifies this transformation by integrating renewable energy solutions into its diverse portfolio. The company’s significant installed capacity and multifaceted energy portfolio position it as a key player in shaping LAC’s sustainable energy trajectory. Pampa Energía’s journey has been fortified by a steadfast commitment to growth and investment over the past fifteen years, operating thermal power plants, hydroelectric power plants, wind farms, and a cogeneration facility, with a particular emphasis on the integration of wind energy. This shift reflects the declining costs of wind energy generation, achieved through efficiency improvements and elevated hub heights, and aligns with the “Nuevo Clima” ethos, representing progress and sustainability. Additionally, the chapter explores the decreasing costs of solar PV modules and electrolysers, which have enabled a transformative shift to renewable energy. Companies such as Repsol S.A. illustrate a commitment to shaping a greener LAC by leveraging existing infrastructure for renewable hydrogen. This highlights a potential future of energy in the region, shaped by renewable sources. The context of decarbonization and the increasing interest in hydrogen as a green energy vector underscore the shift’s importance. Although renewable hydrogen and fossil-based hydrogen with carbon capture currently lack cost-competitiveness against fossil-based hydrogen, the costs of renewable hydrogen are projected to decline. Electrolyser investment costs, a major factor in hydrogen production costs, have already decreased due to economies of scale. Regions with abundant cheap renewable electricity are poised for competitive electrolysis by 2030. In conclusion, this chapter sets the stage for a plausible future where a self-reliant and energy-secure LAC emerges. The vision of an energy-secure region is no longer distant but within reach. The book’s conclusion invites us to embrace a new energy era, collaborating towards a cleaner, more resilient world for generations to come.