IDB Launches PTAP to Modernize Power Grids and Boost Renewables in LAC Region

“Energy security in Latin America and the Caribbean depends on more than generation. It depends on having a reliable and resilient transmission grid,” Goldfajn stated.

The Inter-American Development Bank Group (IDB Group) has announced a major new regional platform designed to accelerate the modernization and expansion of power transmission systems across Latin America and the Caribbean (LAC). The Power Transmission Acceleration Platform (PTAP) aims to help countries strengthen their grids, reduce infrastructure bottlenecks, attract private investment, and scale up renewable energy integration at a pace aligned with global climate commitments.

The initiative was unveiled following a bilateral meeting between IDB Group President Ilan Goldfajn and Jochen Flasbarth, State Secretary at Germany’s Federal Ministry for the Environment, Climate Action, Nature Conservation, and Nuclear Safety. During the meeting, the German government confirmed its intention to support PTAP with up to 15 million euros (approximately $17.3 million) through the International Climate Initiative (IKI). This includes 3 million euros earmarked specifically to assist the 16 countries participating in the Renewables in Latin America and the Caribbean (RELAC) initiative, which collectively aim to reach at least 80% renewable electricity by 2030.

A Regional Push for Resilient, Low-Carbon Grids

President Goldfajn underscored the centrality of transmission to energy security, noting that many countries in the region have made impressive strides in renewable generation but lack adequate transmission capacity to move clean energy from generation sites to population centers and industrial hubs.

“Energy security in Latin America and the Caribbean depends on more than generation. It depends on having a reliable and resilient transmission grid,” Goldfajn stated. “With Germany’s support, PTAP will help countries strengthen transmission, unlock investment, and build more resilient energy systems. The IDB Group is acting as a bridge—connecting national priorities with global capital.”

Germany’s backing comes amid increasing global recognition that modern grid infrastructure is essential to achieving international climate targets, including the global commitment to triple renewable energy capacity by 2030.

State Secretary Flasbarth emphasized this point:

“Grids are the backbone of the global energy transition. Germany is honored to contribute to PTAP and welcomes the RELAC declaration on grids. Both support the transition towards resilient, decarbonized energy systems, provide opportunities for the private sector, and enhance regional cooperation.”

What PTAP Will Provide

PTAP is designed as a regional public-good platform that helps governments overcome the technical, regulatory, and financial barriers involved in scaling up transmission networks. The platform will offer:

• Improved national and regional grid planning

• Support for permitting and environmental approval processes

• Strengthening of regulatory frameworks

• Tools to attract and mobilize private-sector investment

• Solutions to reduce delays in grid project execution

• Support to integrate higher shares of renewable energy

This approach responds directly to the region’s growing demand for storage solutions, long-distance transmission lines, and cross-border interconnections. By improving investment conditions, PTAP aims to crowd-in more private capital, helping close what experts identify as a rapidly widening transmission investment gap.

Upcoming Announcements at COP30

PTAP will be formally presented on November 15 at COP30 alongside three major complementary initiatives:

1. The Belém Declaration on Grids, endorsed by RELAC countries, committing to accelerate transmission and energy storage deployment.

2. “Unlocking the Grid”, a flagship IDB report projecting that transmission investment must triple annually by 2035 to meet renewable energy goals.

3. IDB support for the Climate Finance Principles for Green Grids, launched by the Green Grids Initiative, aimed at guiding public and private stakeholders in financing sustainable grid infrastructure.

These coordinated announcements highlight the region’s growing commitment to collaborative climate action and underscore the central role of transmission systems in the clean energy transition.

Building on a Decade of Investment

Over the past 10 years, the IDB Group has invested more than $1 billion in transmission projects, while also supporting multiple regulatory and institutional reforms across LAC. PTAP expands this legacy by creating a dedicated mechanism to convert planning into bankable projects, ensuring that national priorities align with regional and global climate objectives.

Germany and IDB: A Deepening Climate Partnership

Germany’s contribution to PTAP builds on its longstanding partnership with the IDB Group under the International Climate Initiative (IKI). Since 2016, IKI has provided more than 135 million euros (about $156.4 million) in support for climate and biodiversity programs across Latin America and the Caribbean. Recent collaborations include:

• Climate-smart fiscal policy initiatives

• Biodiversity and ecosystem protection programs

• Water security investments

• Green finance reforms

• The IKI-LAC Climate Private Sector Mobilisation Fund, launched earlier this year with IDB Invest, a 46 million euro (about $53.3 million) platform designed to attract private-sector investment into emissions-reduction projects.

A Future Powered by Clean, Connected Energy

The launch of PTAP marks a significant step forward for energy transformation in the region. By strengthening grid infrastructure and enabling larger volumes of renewable energy to flow across borders, the platform will help LAC countries improve energy security, reduce greenhouse gas emissions, support economic growth, and advance toward their 2030 renewable targets.

As climate pressures intensify worldwide, the region’s ability to modernize its transmission systems—and to do so rapidly—will be a decisive factor in shaping a resilient, decarbonized future.