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Economics of Electricity Losses in Latin America and the Caribbean

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Economics of Electricity Losses in Latin America and the Caribbean

Year Published

2024

Contributing Organizations

IDB Invest

Type of Resource

Research/Insights Report

Languages

English
Spanish

Relevant Topics

Core Topic
Causes & Impacts
Topic 2
Energy Generation

Target Audience

MDBs/DFIs
Real Economy Corporates

Relevant Geography

Latin America and the Caribbean
Economics of Electricity Losses in Latin America and the Caribbean

Resource Description

This resource analyzes electricity losses in Latin America and the Caribbean, outlining their causes, impacts, and policy responses. It offers a framework for developing tailored, long-term strategies to reduce losses.

Why This Matters

Reducing electricity losses can improve energy access, service quality, and financial sustainability, while supporting climate and development goals.

Key Insights

  • Identifies drivers such as informal connections, poor infrastructure, weak governance, and low enforcement
  • Explains how losses reduce service quality, limit investment, and disproportionately affect vulnerable populations
  • Recommends context-specific strategies combining infrastructure upgrades, digital tools, regulatory reform, and political support
  • Stresses the importance of capacity building for utilities and regulators

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