The region's shift towards renewable energy sources, which accounted for 67.4% of electricity generation in 2025, opens a new area of concern: managing the waste from its own infrastructure. Although the boom in solar and wind power began just a decade ago and most of the existing equipment has not yet reached the end of its useful life, premature failures and technological upgrades are accelerating the disposal of panels, wind turbines, and batteries.
This situation has led several countries to design plans, programs, and regulations for the recycling of reusable components. The goal is to mitigate the environmental impacts throughout the life cycle of these technologies, preventing heavy metals, plastics, and corrosive or toxic substances from affecting the soil, air, and water.
The Latin American and Caribbean Energy Organization (OLACDE) Technical Note explains that the generation of this waste represents a circular economy opportunity with a potentially recoverable economic value that could reach US$209 billion by 2050 through recycling, reuse, and material recovery strategies. This perspective broadens the sectoral dialogue, incorporating the need to assess the economic potential of secondary resources rather than solely analyzing the physical presence of waste.
Currently, there are 150 million solar panels in operation in the region and 16,000 wind turbines, which, together with the accelerated growth of batteries and solar and wind energy, allows us to project the magnitude of the volumes of materials accumulated by the middle of the century:
- 81 million tons of total materials will be incorporated into the transition technologies.
- 36 million tons will correspond to steel, equivalent to 63% of the current annual production of this metal in the region.
- 4 million tons will be copper, a volume close to 40% of the regional annual production.
- 10 million tons will correspond to aluminum, almost triple the current annual production of Latin America and the Caribbean.
The study indicates that recovering these components would reduce the demand for new extractive activities, decrease emissions associated with mining, and strengthen the security of supply of resources considered critical worldwide.
Artificial intelligence in the circular economy
The technical note indicates that artificial intelligence acts as a key enabler in the management of these assets. Digital tools and predictive systems allow for continuous monitoring of devices, facilitating efficient maintenance scheduling, extending equipment lifespan, and automating their classification for refurbishment or recycling.
In the specific case of lithium batteries for electromobility, algorithms analyze the operating history to determine when a module can be repurposed for a second life in stationary energy storage applications. This alternative extends the device's overall lifespan and postpones the need for its final disposal.
An industrial opportunity for the region
OLACDE argues that the circular economy opens an opportunity for the region's industrial development. The recovery of critical materials could reduce dependence on virgin raw materials, decrease strategic imports, create new regional value chains, generate skilled employment, and strengthen security of supply for the future energy sector.
However, the document warns that the development of this industry will require the strengthening of specific regulatory frameworks, extended producer responsibility schemes, traceability systems and reverse logistics, given that these capabilities are still incipient in most countries of the region.
The sustainability of the sector does not end with the installation of wind farms, photovoltaic plants or batteries; it will depend on the region's ability to efficiently transform technological waste into new productive resources.
Review the technical note at the following link: https://www.olade.org/publicaciones/nota_tecnica_19/