Latin America’s Is Emerging As A Renewable Energy Powerhouse – Oilprice.com

Written by Rystad Energy

Latin America is emerging as a green powerhouse, with some of the strongest renewable capacity growth expected globally in the coming years. With auctions already adopted throughout Latin America, Rystad Energy expects the region’s 49 gigawatts (GW) of renewable capacity will skyrocket to 123 GW by 2025, with the biggest increases coming from Brazil, Mexico, Chile, Colombia and Argentina.

All five countries have held renewable energy auctions for years, generating a mammoth 50 GW pipeline for Brazil and a 40 GW pipeline for Mexico. With prices dropping to the mid-$20’s per megawatt hour (MWh), and even as low as $18 per MWh in Brazil, auctions are likely to move forward in most countries despite pandemic-related delays. However, it should be noted that the future of Mexico’s auction remains unclear after recent political tumult.

The low prices combined with great land availability have led to increasing competition, giving rise to a wave of mega projects. From 2018 onward, solar PV and wind assets with capacities in the range of 50 MW to 300 MW have dominated the market. We expect the popularity of mega capacity projects will continue, making up around 70% of wind and solar assets in the region by 2025.

Read more here.

By Jessica Yap-Chung
Jessica Yap-Chung Profile Picture