Latin America and the Caribbean (LAC) have come a long way in electrification. Thirty years ago, large swaths of the region were in the dark; today, most countries boast coverage rates of over 95%. That’s a remarkable achievement, placing universal electrification within close reach. Yet the story isn’t finished. Roughly 10 million people still lack electricity and over 60% of them live in Haiti. Closing this gap by 2030 is possible, but only if we embrace new models that go beyond wires and poles.
The challenge is not technical alone. Electrification is more than lights, it’s a platform for development. Power enables livelihoods, health services, and digital connectivity. But without complementary investments and inclusive delivery models, electricity alone rarely transforms lives. The “last mile” is therefore a design challenge: how do we deliver energy in ways that unlock economic and social progress?
Most LAC countries have solved the easy parts—connecting cities and towns via national grids. What remains are remote, sparsely populated areas: villages deep in the Amazon, settlements high in the Andes, tiny Caribbean islands, and indigenous communities far from infrastructure. Extending the grid to these places can cost thousands of dollars per household and take years. Traditional mini-grids often require heavy subsidies and struggle to provide reliable services in remote areas.
But this is not unique to LAC. Africa and South Asia face similar hurdles. LAC’s geography of mountains, forests, and islands, makes the economics of grid extension particularly daunting. At the same time, the region’s relatively high electrification rate means the remaining households are often the hardest and most expensive to reach. Traditional approaches alone won’t get us to 100%.
Fortunately, innovation is rewriting the rules. Three solutions stand out:
1. Mesh-Grids: Decentralised, modular networks that interconnect individual solar and battery units into clusters, offering scalable, cost-efficient, and resilient power for remote communities.
2. Solar-as-a-Service: A pay-as-you-go model where households pay monthly for using the equipment instead of purchasing it, and providers must deliver a reliable and affordable service.
3. Innovative Financing & Policy: Results-based financing, blended capital, and regulatory reforms that incentivise impact, de-risk rural projects, and enable decentralised energy providers.
Electrification as a Catalyst
Electricity is not the destination, it’s the foundation. Studies show that electrification alone doesn’t guarantee economic transformation. In LAC’s last-mile communities, barriers like poor market access and weak public services persist. Energy systems must therefore be designed for productive use like powering irrigation, refrigeration, internet access, and small enterprises. Mesh-grids and solar-as-a-service models are well-suited to this approach, evolving with local demand and enabling community hubs.
The finish line is in sight. LAC could become the first developing region to achieve universal electricity access by 2030. But success requires a shift in mindset. The last mile is no longer about engineering, it’s about design, partnership, and vision. The solutions exist. What’s needed now is the will to deploy them.
For more, read the report.