Many countries in Latin America and the Caribbean are interested in diversifying their energy sources for energy security and in contributing to the reduction of greenhouse gases. “Non‐traditional renewable energy sources,” which include wind, solar, geothermal and small‐scale hydropower, have received much attention in terms of meeting these goals. To foster the expansion of non‐traditional renewable energy, different countries have pursued different legal and regulatory approaches, but there is limited evidence regarding the effectiveness of different approaches.