Climate change is one—if not the—existential threat of the 21st century. While global efforts to combat climate change are hotly debated and have not always yielded the most productive results, key actions to mitigate and adapt to a new climate reality are present in nearly every country. One of the critical ways that countries have looked to curb climate change is by transitioning their energy matrices toward green alternatives—from increasing hydro and solar power use to supporting the production and ownership of electric cars. However, the effects of climate change—particularly the exacerbation of droughts—is proving to be a challenge for these transitions. Droughts in South America showcase the challenges the energy transition is already facing.
Climate change has a significant impact on droughts by intensifying their severity and duration through increased evaporation rates—altering the distribution of water resources and leading to drier soil and vegetation. Droughts can create a vicious cycle, where dry soil and reduced plant cover lead to even drier conditions and cause further hazards like uncontrollable wildfires. This is especially an issue in South America where the effects of the El Niño cycle are currently leading to drier conditions, and several countries like Argentina, Uruguay, and Chile are experiencing decreased annual precipitation and intense drought conditions. The effects of the El Niño phenomenon—characterized by warming of the ocean surface and changes in wind patterns—can be especially severe, leading to disrupted weather patterns and an increase of droughts or storms in certain regions. Unfortunately, climate change may lead to more frequent and intense El Niño occurrences.
Drought conditions in South America may overturn the region’s efforts at diversifying their energy production capabilities. Several South American nations have long addressed energy production through investment and development in hydroelectric dams, with hydropower being the dominant source of electricity and accounting for more than half of the region’s total electricity supply. In particular, Brazil has become a hotspot for dam construction, with nearly 66% of the nation’s electricity generated using hydropower. Other countries in the region—such as Colombia, Peru, Ecuador, and Chile—are also constructing dams to meet increasing energy demand.
While dams provide a crucial source of energy for many communities, the current drought in South America highlights the potential challenges of relying on them. Erratic precipitation patterns can lead to water scarcity and interruptions in hydropower generation, raising concerns about the long-term sustainability of this approach. In 2016 and 2018, Venezuela faced power outages due to low water levels in hydroelectric dams caused by a severe drought. Similarly, in 2014 and 2015, Brazil had to implement electricity rationing because of low inflows into hydropower reservoirs in the Southeast and Northeast regions. These concerns will only worsen as climate change exacerbates temperature rises and rainfall fluctuations, melts glaciers, and increases the probability of extreme weather events.
Droughts also have severe impacts on other components of the Green Energy Transition that could hinder progress elsewhere. Central to all efforts to convert to clean energy is the need for storage methods—particularly through the use of batteries. This has long been one of the bottlenecks of the energy transition and is reliant on various rare earth minerals—including lithium—for battery production. Approximately 58% of the global lithium supply is located in South America’s “Lithium Triangle” of Argentina, Bolivia, and Chile—the same region that is currently experiencing an intense drought. This represents a unique challenge for the energy transition. Lithium mining is a water-intensive process that requires using evaporation ponds with over two million liters of water to produce one ton of lithium. With the drought affecting much of South America and the geographic specificity of lithium mining, battery production will decline. In fact, Bolivia recently had to suspend water usage in mining operations.
The threat that droughts pose to the Green Energy Transition is aggravated by the very phenomena that the transition seeks to address—climate change. This situation highlights the need to take additional considerations in how societies address climate change and the energy transition. Over reliance on any individual energy source can pose threats to countries and the energy transition, particularly when that resource is necessary for multiple purposes—as is the case with water. Governments and the private sector must invest more in research and development in this area to find diverse solutions that limit the risk associated with single material production. Addressing the climate crisis is a necessity, but to address this crisis, it is crucial for society to mitigate challenges of the energy transition now.