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If progress has been achieved with coverage, the same cannot be said for losses linked to transmission and distribution of electricity. Latin America’s loss level averages 16.7 percent of total output, twice the world average. A high level of loss carries significant cost for the region’s economies. In fact, if distribution losses could be reduced to the levels of the best performers in the region over the next 20 years, annual electricity savings from distribution improvements alone could reduce demand by about 78 TWh (6 percent of the incremental demand of 1,325 TWh) by 2030.20 Venezuela has the highest average level of losses (27 percent) while Chile has the lowest (6 percent) in Latin America. Most of the electricity generation is concentrated in two countries: Brazil and Mexico combined produce 57 percent of the region’s electricity. Figure 25: Latin America's Electricity Generation by Country/Region 1970 - 2005 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 19% 9% 19% 20% 33% 19% 7% 17% 21% 36% Brazil Mexico 1970 Andean Zone 2005 Central America+Caribbean Southern Cone Source: OLADE SIEE database Electricity generation Since 1970, Latin America’s electricity production has increased an average 5.6 percent per year. That exceeds global electricity-generation growth, which averaged 4.2 percent annually during the same period. However, Latin America’s growth rate has not been consistent. 20 Rigoberto Ariel Yépez-García, Todd M. Johnson, and Luis Alberto Andrés, Meeting the Balance of Electricity Supply and Demand in Latin America and the Caribbean, (Washington, D.C.: The World Bank, 2011). 30PDF Image | Infrastructure and Environment Department
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