Research on energy transitions in Latin American and Caribbean (LAC) countries has increased, highlighting government roles in international climate negotiations and the regional potential for decarbonization. However, there are barriers, including negative impacts on indigenous lands and social opposition to energy projects. Traditional renewable energy sources in LAC, such as biomass and hydropower, are being challenged by societal resistance and climate vulnerabilities. Many LAC governments have developed plans to promote renewable energy beyond hydropower, leading to increased installations of wind and solar capacity. This article focuses on how energy policy failures trigger regulatory reforms, resulting in "policy bricolage" and a reconsideration of the state's role in the energy sector. The authors will use Mexico and Chile as case studies, analyzing the political factors and mechanisms driving energy policy transition reforms.

Existing literature emphasizes the proactive role of LAC governments in international climate negotiations and the regional potential and barriers to decarbonizing energy systems. Studies have explored the local impacts of energy transition policies, noting negative effects on indigenous lands and resulting social opposition. The social implications of infrastructure projects and the cultural impacts of dominant worldviews on energy transitions have also been discussed. The traditional use of renewable energy (biomass and hydropower) is being challenged, prompting diversification of the renewable energy portfolio. Most national governments in the region have developed plans to promote renewable energy beyond hydropower, although this has been largely driven by hydropower development. Existing research highlights the role of electricity reforms, market liberalization, and regulatory reforms in enabling energy transitions. Globalization and the changing role of the state are also identified as significant explanatory factors. This study addresses gaps by linking policy failures to energy transitions, connecting political debates about energy policy failures with policy instruments, and examining the shifting role of the state in the energy sector.

This comparative study uses process tracing to analyze the causal relationship between policy failures and policy bricolage in Mexico and Chile. Process tracing is used to reconstruct the temporal dynamics of energy sector evolution and policy reforms. The methodology involved three steps. First, a timeline of energy sector evolution was created, identifying energy crises and policy changes promoting renewable energy. This was achieved through a systematic literature review using primary and secondary sources and news platforms. Second, the nature of policy bricolage was analyzed by examining energy laws and regulations focusing on energy sustainability, security, and accessibility. Third, public debates linking energy crises and regulatory changes were traced. Discursive frames of energy crises were analyzed to understand policy failures and the recognition of contradictions, using government documents, public statements of key actors, parliamentary debates, and press reports. The case studies were selected based on the method of agreement: both countries, despite differences in energy systems and policy paradigms, experienced policy failures that plausibly explain their energy transitions and their success in renewable energy adoption.

**Mexico:** The Mexican case illustrates a critical policy failure of energy nationalism and public service energy models. A creeping crisis, attributed to the unbalanced liberalization of the national market and the collapse of public utilities' incentives, led to the closure of the Luz y Fuerza del Centro (LyFC) utility in 2009. The government framed this as a state failure requiring liberalization and increased private sector participation. This was further solidified by the 2013 constitutional energy reform, which opened the sector to foreign investment and used renewable energy as a tool to legitimize the changes. This led to policy bricolage through the introduction of market mechanisms, independent regulatory bodies (CENACE and CRE), and auction systems for renewable energy. However, the current administration under President López Obrador is attempting a policy reversal towards state-centered energy control. **Chile:** Chile's case demonstrates an ordinary policy failure within a liberal market model. The 1982 Electricity Law led to privatization and deregulation, but creeping crises, including blackouts and reliance on unreliable gas imports, exposed the limitations of this approach. The 2007-2008 energy disruption highlighted contradictions between growing energy demand, insufficient investment, and rising prices. The framing of the policy failure focused on improving security of supply and environmental sustainability, leading to increased state intervention while retaining elements of the market-based approach. This resulted in incremental regulatory changes, including a 2008 Renewable Energy Law, which introduced quotas and financial penalties for not meeting renewable energy targets. The cancellation of the HidroAysen megaproject in 2014 further showed a shift toward non-conventional renewable energy sources. Further policy bricolage involved strengthening state institutions (Ministry of Energy), improving the auction system to increase competition, and establishing more ambitious renewable energy targets (70% by 2050).

The findings demonstrate that policy failures can serve as catalysts for energy transitions, leading to regulatory bricolage and shifts in the balance of the energy trilemma. In Mexico, the framing of the crisis as a critical failure challenged the ideological underpinnings of energy policy, leading to significant liberalization. In Chile, the framing of the crisis as an ordinary failure prompted adjustments within the existing liberal framework, resulting in a strengthened regulatory role for the state. The contrasting approaches highlight how differing political contexts and policy coalitions shape responses to energy crises and subsequent policy evolution. Both cases demonstrate that renewable energy adoption can be facilitated by either reducing or increasing the state's role depending on the initial conditions and prevailing political dynamics. The success of renewable energy in both countries demonstrates that energy transitions are deeply political processes shaped by competing interests and policy frames. The study also highlights the potential for policy reversals, as demonstrated by Mexico's recent shift towards state-centric energy policy.

This research shows that recognizing policy failures presents a crucial opportunity for regulatory changes that bolster renewable energy in LAC countries. Both Mexico and Chile exemplify how this process can be part of wider reforms to either support or maintain sector liberalization. Understanding how energy crises are framed and how competing discourses emerge is vital for explaining energy policy changes in LAC. This study’s analytical framework, based on constructivist approaches and discursive institutionalism, reveals how policy ideas are reconsidered during crises. The distinction between critical and ordinary failures shapes the policy response, with critical failures causing paradigmatic shifts and ordinary failures resulting in policy adaptation. Future research should investigate the evolution of dominant discursive frameworks for energy policies in LAC to improve our understanding of energy transitions and their challenges, given the potential for policy reversals and the socio-environmental impacts of these transitions.

The study's focus on two case studies limits the generalizability of the findings to other LAC countries. Further research should include a wider range of cases to validate the findings and identify additional factors that influence energy transitions. The reliance on publicly available data might have resulted in overlooking some nuances or perspectives in the policy debates. Future research could benefit from more in-depth qualitative data collection, such as interviews with policymakers and stakeholders.