Powering the Transition: How Central America and the Caribbean Can Build the Future of EV Charging

1. Executive Summary

The charging station industry in Central America and the Caribbean is nascent, with uneven electric vehicle (EV) adoption and significant gaps in infrastructure. Costa Rica leads with thousands of EVs and supportive laws; others range from pilot stages to limited policy frameworks. EV fleet growth across Latin America and the Caribbean surged nearly threefold in 2024, yet just 8% of public charging infrastructure exists outside Brazil, Mexico, and Chile. This mismatch signals substantial opportunity—but also challenges—in scaling charging networks.

For B2B stakeholders (installers, operators, distributors), success hinges on navigating fragmented policies, financing barriers, and low public awareness, while leveraging early momentum, renewable energy synergies, and emerging OEM collaborations. This report analyzes these dimensions and offers clear, actionable insights for strategic positioning.

2. Regional Context and Policy Frameworks

2.1 Central America: Country-Level Policy Snapshot

• Costa Rica leads with the 2018 electric mobility incentives law and longstanding environmental ambition—including carbon neutrality and reliance on renewable energy—spurring EV adoption and charging network expansion.
• El Salvador enacted EV incentives in May 2021, offering import duty and VAT exemptions, alongside legal frameworks to promote public charging deployment.
• Panama has crafted a comprehensive national electric mobility strategy, though rollout details remain limited.
• Guatemala is debating EV legislation within broader renewable energy and investment incentive frameworks—including renewable energy auctions and tax holidays—though EV-specific infrastructure policies are nascent.
• Honduras has renewable energy incentives but no clear EV infrastructure or mobility policy.
• Nicaragua has early steps in place (working group), but lacks concrete EV infrastructure strategies.

Key takeaway: Policy maturity varies significantly—Costa Rica and El Salvador have begun deploying frameworks; others are emerging or underdeveloped.

2.2 Caribbean: Emerging and Fragmented Approaches

In the Caribbean, EV and charging policies are highly fragmented. Many islands lack formal incentives or planning. The imported-vehicle orientation, combined with high import duties and logistical constraints, hinders EV and infrastructure expansion. The Caribbean and Central American Automotive Outlook (2024-2030) highlights passenger EV penetration and infrastructure driven by digital dealership models, OEM entry, and public–private partnerships.

3. Market Development Dynamics

3.1 EV Fleet Growth vs. Charging Infrastructure Deployment

There has been explosive EV fleet growth in Latin America and the Caribbean: from 249,000 units in mid-2024 to 444,000 by December 2024 (a 78% increase in six months, nearly tripling over a year). However, charging infrastructure remains concentrated: 92% of public chargers reside in Brazil, Mexico, and Chile; the remaining 24 countries—including all of Central America and most Caribbean nations—share just 8%.

3.2 Market Size and Forecasts

• In Latin America, the EV charging station market revenue was USD 203.6 million in 2024, projected to grow at a CAGR of 20.7% from 2025 to 2030, reaching USD 626 million by 2030. "Fast charger" segment will grow fastest, while slow chargers remain the largest revenue contributor.
• Another forecast estimated the market at USD 169.8 million in 2023, growing to USD 634.5 million by 2030—again, ~20.7% CAGR.
• A separate report values Latin American EV charging at USD 225.9 million in 2023, projected at USD 1.125 billion by 2030 (CAGR 26.4%)—and highlights V2G, IoT connectivity, and deployment of fast-charging infrastructure through OEM and public–private cooperation.

Synthesis: Forecasts align around high-teens to mid-20s CAGR, with cumulative market expansion by 3–5x in under a decade. Central America and Caribbean, while small now, present outsized growth potential relative to baseline.

4. Customer Segmentation and Needs

4.1 Installers and Operators

These are local contractors, EV infrastructure firms, and utilities responsible for deploying and managing charging equipment. Key needs:

• Regulatory clarity: installation standards, permitting processes, interconnection rules.
• Technical capacity building: training for new technologies (fast charging, V2G, IoT-enabled).
• Financing and demand forecasting: to de-risk projects and improve ROI projections.

4.2 Distributors and OEM Partnerships

These include hardware suppliers, manufacturers, and OEM-aligned ecosystem partners. Needs include:

• Supply chain access: local distribution networks, import/duty optimization.
• Localization: adaptation to local grid constraints, voltage standards, and climate conditions.
• Partnership models: with governments, utilities, or commercial developers.

4.3 End-user Segments: Fleets, Commercial, Residential

• Fleet operators (e.g., logistics, buses): require high-throughput, reliable charging, fast/overnight solutions, and integrated energy management.
• Commercial operators (e.g., malls, hotels): seek to attract customers and green branding, needing turnkey solutions, billing systems, and maintenance.
• Residential & small business customers: want affordable, simple, interoperable home charging options, backed by financing or subsidy.

5. Key Pain Points

5.1 Regulatory and Incentive Gaps

• Fragmented policy landscape: many countries lack coherent EV or charging infrastructure legislation; Costa Rica and El Salvador are exceptions.
• Import duties and lack of incentives: high taxation discourages EV and charging equipment importation; few countries provide tax exemptions or financial incentives.

5.2 Infrastructure and Deployment Challenges

• Low density of charging stations: Central America and the Caribbean share only a small fraction of regional infrastructure.
• High capital costs for fast-charging: financial burden of deploying high-speed charging is a deterrent.
• Inter-agency and regulatory coordination issues: alignment between national, regional, and local authorities is weak, delaying deployment.

5.3 Demand-side Barriers

• Public awareness and acceptance: low EV familiarity, range anxiety, perceived cost barriers.
• Limited model availability: few dealerships offer EVs, limiting choice and adoption.
• Perception of impracticality in rural areas: sparse infrastructure undermines confidence in EV feasibility.

6. Opportunities and Strategic Imperatives

6.1 Policy Enablement and Public–Private Cooperation

• Engage with governments to support policy drafting—e.g., define EV infrastructure standards, streamline permitting, tax incentives, or duty exemptions as seen in El Salvador and Costa Rica.
• Pilot public charging projects in partnership with utilities and commercial stakeholders; these can serve demonstration value and de-risk scale-up.
• Support multi-laterals and climate financing agencies (e.g., energy auctions, renewable energy incentive laws in Guatemala) to include EV charging in renewable tenders.

6.2 Financial Viability and Innovative Business Models

• Explore mobility-as-a-service (MaaS) and subscription-based charging access for fleets and businesses.
• Use public–private hybrid models, sharing upfront cost and revenue between operators, property owners, and OEMs—leveraging digital financing, as noted in automotive outlook forecasts.
• Promote V2G and IoT-enabled charging, adding value through energy flexibility and remote management; an emerging trend in the region.

6.3 Technology and Standards Alignment

• Prioritize slow and fast charger mix, matching deployment to local usage patterns; slow is currently biggest segment, fast is fastest growing.
• Standardize on commonly used connector types, enabling interoperability—e.g., CCS, Type 2, adaptable legacy standards.
• Invest in training installers and service providers on equipment maintenance, grid integration, and smart charging.

6.4 Education, Awareness, and Acceptance

• Develop stakeholder education campaigns—clarifying cost savings, environmental benefits, and safety of EVs and charging infrastructure.
• Work with fleet buyers and fleet managers, showcasing TCO advantages and integrating pilot cases.
• Promote private charging adoption through rebates or bundled solutions, aligned with what Uruguay and others are doing for home charging.

7. Conclusion and Strategic Outlook

The Central America and Caribbean regions sit at a critical juncture. EV adoption is accelerating, yet charging infrastructure lags—creating a clear opportunity for strategic early movers. For Anari Energy’s B2B stakeholders:

• Advocacy and policy assistance can shape enabling environments.
• Flexible financing and business models, including public–private partnerships and V2G/IoT integration, can unlock projects.
• Technical leadership in standards, interoperability, and installer training will be a competitive differentiator.
• Market education and stakeholder engagement will be essential to nurture demand.

Ultimately, the region’s renewable-rich energy mix, climate priorities, and growing EV momentum offer fertile ground. A disciplined, consultative approach—combining technical expertise, policy navigation, and business model innovation—can position firms to lead charging infrastructure deployment and catalyze a sustainable mobility ecosystem.