OEA - CIDI - Resolución CIDI INF 709

INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT

OEA/Ser.W CIDI/INF.709/2026 9 April 2026

Original: English

CONCEPT NOTE

REGULAR MEETING OF

INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT (CIDI) APRIL 22, 2026

THEME: ENERGY EFFICIENCY AND DIVERSIFICATION

1. Background/Justification Energy sustainability and energy security are pressing challenges for Latin America and the Caribbean (LAC), a region marked by growing energy demand, uneven development, and high exposure to physical and cyber security threats, climate and economic shocks. Rapid urbanization, population growth, and industrial expansion continue to increase energy consumption, while many countries depend on a limited set of energy sources, particularly fossil fuels and large hydropower. This dependence heightens vulnerability to fuel price volatility, supply disruptions, and climate-related risks such as droughts (IEA, 2023). In this context, energy resource diversification—including renewable and nuclear energy—and energy efficiency are essential strategies for ensuring long-term energy sustainability and strengthening energy security across the region.

Energy sustainability refers to meeting present energy needs without compromising future environmental, economic, and social wellbeing, while energy security focuses on the reliable and affordable supply of energy. In LAC, these objectives are closely interconnected. The region has one of the cleanest electricity matrices in the world, with renewables accounting for approximately 60–65 percent of electricity generation (IEA, 2024). However, this aggregate figure conceals important vulnerabilities. Caribbean small island developing states remain highly dependent on imported oil for electricity generation, while several South American countries rely overwhelmingly on hydropower, which is increasingly exposed to climate-induced variability and droughts (ECLAC, 2022; WEF, 2025).

These challenges highlight the need to strengthen reliability through greater diversification and improved demand management. Energy resource diversification reduces overreliance on single fuels or technologies and lowers exposure to external shocks. Historically, hydropower has formed the backbone of electricity generation in much of LAC, but recent droughts have demonstrated the risks of excessive dependence on climate-sensitive resources. During periods of low rainfall, countries are often forced to rely on fossil-fuel power plants, increasing electricity costs and emissions (IEA, 2023).2 Expanding wind, solar, geothermal, and bioenergy generation allows countries to build more flexible and resilient systems. Wind and solar capacity have grown rapidly across the region and are now among the most cost-competitive new generation options (IEA, 2024). Geothermal energy offers stable baseload electricity in countries such as Mexico and parts of Central America, while bioenergy contributes to energy supply diversification and rural development. Nuclear energy can also play a strategic role in diversification for selected LAC countries. Argentina, Brazil, and Mexico already operate nuclear power plants, demonstrating regional experience with the technology. Nuclear power provides large-scale, lowcarbon baseload electricity that is not affected by weather variability, making it a valuable complement to variable renewable sources such as solar and wind (IEA, 2024). When deployed within strong regulatory and safety frameworks, nuclear energy can enhance long-term energy security by stabilizing power systems and reducing dependence on fossil fuel imports. Diversification also supports regional energy integration. Cross-border electricity interconnections enable countries to balance supply and demand more effectively, reduce generation costs, and improve system resilience during periods of stress (IDB, 2025). Energy efficiency is widely recognized as one of the most cost-effective tools for improving energy sustainability and security. Efficiency measures reduce total energy demand, lower import dependence, and ease pressure on power generation and transmission infrastructure (IEA, 2023). In

LAC, households devote a relatively large share of their income to energy services, making efficiency especially important for affordability and social equity. Despite progress, efficiency improvements have advanced more slowly than in advanced economies due to regulatory gaps, limited enforcement, and insufficient investment (World Bank, 2023). Targeted improvements in buildings, appliances, industry, and transport can significantly reduce emissions, delay the need for new power plants, and generate employment. Given that the energy sector accounts for more than half of greenhouse gas emissions in Latin America and the Caribbean, efficiency is an indispensable element of sustainability strategies (ECLAC, 2022). Energy diversification and energy efficiency are mutually reinforcing. Improved efficiency reduces peak demand, facilitating the integration of variable renewables. At the same time, a diversified energy mix—including renewables, nuclear power, and flexible generation—maximizes the benefits of efficiency by ensuring reliable and low-carbon supply (WEF, 2025). Integrated energy planning that combines clean energy deployment, nuclear generation where appropriate, and efficiency standards can help countries meet climate goals without sacrificing affordability or reliability. Instruments such as renewable energy auctions, appliance efficiency standards, building codes, and industrial modernization programs have shown strong results when supported by stable institutions and long-term policy certainty (World Bank, 2023; IDB, 2025). Despite their benefits, energy diversification and efficiency face several challenges in LAC. These include financing constraints, regulatory uncertainty, and uneven institutional capacity. Nuclear energy deployment raises additional considerations related to safety, waste management, and public acceptance, underscoring the importance of strong governance and international cooperation (IEA, 2024). Small Caribbean economies face unique constraints related to scale and investment risk, making efficiency and distributed generation particularly important.3 Addressing these challenges requires transparent regulation, investment in human and institutional capacity, and enhanced regional cooperation. International financial institutions and climate finance mechanisms play a key role in supporting investment and risk reduction.

Energy resource diversification–including renewable and nuclear energy—and energy efficiency, are fundamental pillars for achieving energy sustainability and energy security in Latin America and the Caribbean. Diversification enhances resilience to climate variability and market shocks, while efficiency reduces costs, emissions, and system strain. Together, these strategies provide a robust foundation for economic development, climate action, and social inclusion. With sound policies, strong institutions, and regional cooperation, LAC can transform its abundant energy potential into a secure and sustainable future.

2. Purpose of the Session The session will focus on the critical steps taken by the governments in the region to support energy security and sustainability through the diversification of resources and improvements in efficiency. Specific issues for consideration include strategies, policies, and investments to encourage wider diversification of energy resources and the use of energy efficiency technologies and strategies.

Particular attention will be given to how a diverse mix of renewable, fossil fuels, and other (including nuclear where appropriate) resources can support countries to offer a power system that is affordable, resilient, and sustainable. Likewise, it will consider how energy efficiency can be an important contributor to help meet growing demand for electricity, while helping to reduce greenhouse gas emissions and other pollutants.

3. Audience and Expectations CIDI Meetings are attended by representatives of the Permanent Missions to the OAS. Given the focus of this session, the participation of national energy authorities, regulators, transmission system operators, and regional integration institutions is particularly encouraged, whether in person or virtually. The session will also benefit from contributions by experts from regional energy organizations, and development banks. The dialogue is expected to focus on practical policy approaches, infrastructure planning, and financing strategies that can support increased diversification of energy supplies and the use of energy efficiency solutions to support energy security and sustainability across the Americas.

4. Structure of the Session The CIDI meeting will begin with the substantive thematic discussion described herein and continue with a series of procedural items. The first part of the meeting will include 7-minute presentations from guest panelists, followed by interactive dialogue facilitated by the Chair among invited experts and Member States. In the interest of time, Member States are kindly requested to limit

The CIDI meeting will begin with the substantive thematic discussion described herein and continue with a series of procedural items. The first part of the meeting will include 7-minute presentations from guest panelists, followed by interactive dialogue facilitated by the Chair among invited experts and Member States. In the interest of time, Member States are kindly requested to limit their interventions to 5 minutes from the floor. Interventions may be delivered directly by Permanent Missions or, at their request, by sectoral authorities connecting from capitals on behalf of their respective countries.4 The discussion will center on how Member States can effectively strengthen the resilience and security of energy systems in the face of a changing and increasingly complex risk landscape. It will examine how countries can develop energy supply and delivery systems that are efficient and benefit from a diverse mix of resources. The dialogue will consider how the incorporation of multiple renewable sources (e.g. solar, wind, geothermal, and hydro), with clean fossil fuel sources, and nuclear energy (where appropriate) combined with energy efficiency technologies and systems can enhance regional energy security and sustainability. The session will aim to identify necessary policy adjustments, regulatory reforms, institutional coordination mechanisms, and investment strategies essential to ensure the development of diversified and efficient power systems in the hemisphere. Recognizing that resilient energy systems are foundational to economic stability, environmental sustainability, social welfare, and national security, the insights gathered during this exchange will contribute to shaping future CIDI deliberations and potential recommendations or resolutions addressing energy diversification and energy efficiency solutions to meet the electricity needs of Member States Member State delegations are encouraged to consider the following guiding questions, focusing on concrete programs, regulatory approaches, and investment strategies that may be shared. Questions for member states will feature:  What strategies are effective to encourage the diverse mix of electricity generation sources?  What types of policy incentives can be deployed to accelerate electric energy efficiency solutions?  How can energy partnerships among OAS Member States support the diversification of energy sources and efficiency to contribute to regional energy security?  What is the role of nuclear power in a diverse and sustainable power generation portfolio?

5. Outcomes of the Session The session is expected to address solutions to ensure the reliable and sustainable supply and

 How can energy partnerships among OAS Member States support the diversification of energy sources and efficiency to contribute to regional energy security?  What is the role of nuclear power in a diverse and sustainable power generation portfolio?

5. Outcomes of the Session The session is expected to address solutions to ensure the reliable and sustainable supply and use of energy in the Americas as a central pillar of hemispheric development and security discussions.

It will promote greater policy and regulatory approaches that help drive a more diverse and efficient power system ensuring that sustainability advances hand in hand with stability and protection. Through constructive dialogue, the meeting will encourage Member States to adopt measurable investment benchmarks that strengthen system robustness and provide clear pathways toward long-term reliability. It will also foster deeper collaboration across the energy generation, delivery, and use sectors, together with the critical finance and development industries , recognizing that modern energy systems operate at the intersection of infrastructure, technology, and economic policy. The insights generated are intended to inform future CIDI recommendations or resolutions focused on building resilient and secure energy systems throughout the Americas. By positioning diversification and efficiency at the core of energy strategies, Member States can safeguard economic stability, accelerate sustainable development, and ensure reliable and secure energy access for present and future generations.

6. Invited guest expert panelists The following expert panelists will join the CIDI session:

 Ramón Mendez Galain, Executive Director, Ivy  TBD