Latin America solar focus: 2025 auctions and expansion plans

Latin America and the Caribbean are preparing for a pivotal year in solar energy development, driven by new auctions and ambitious expansion targets.

From Brazil's shifting power auction strategies to Chile's rapid advancements in energy storage, the region presents a range of opportunities and challenges for investors in 2025.

At the same time, countries such as Argentina, Colombia and Jamaica are utilizing targeted tenders to accelerate renewable energy adoption, reflecting the diverse strategies employed across the region.

Brazil

The dynamics of power auctions in Brazil have changed significantly in recent years. Solar and wind capacity growth is now being driven not by auctions held by regulator Aneel but via power purchase agreements (PPAs) in the free market.

In 2024, for example, the country did not have any greenfield or new energy auctions, just tenders for existing plants.

For this reason it is not clear where solar power projects will have the chance to compete in regulated market auctions. However, there is a possibility they will participate in the next public tenders for isolated systems and batteries.

The next battery auction has been recommended for 2025, though a specific date has not yet been set. It is possible solar initiatives will be allowed to participate if coupled with batteries.

The next tender for isolated system contracts is scheduled for May 2025.

Chile

In Chile, a regulated supply auction is planned for next year. Details, including key dates, can be seen here.

Information about free market contract opportunities can be seen here and here 

Solar projects with storage components are multiplying in Chile. Installed energy storage capacity in the country is expected to reach the 1GW mark by year-end and is on track to meet or exceed a 2026 target of 2GW.

According to official forecasts, Chile's installed capacity from non-conventional renewable energy (NCRE) sources is expected to surpass 20GW by 2026, up from around 16.2GW today. Solar capacity is seen reaching 14GW over the period. 

Argentina

In Argentina, there has been little scope for traditional regulated supply auctions with power market administrator Cammesa since President Javier Milei assumed power last December. 

One way to see how the solar market is progressing is to monitor Cammesa’s auctions for transmission priority dispatch capacity. Another is to follow PV projects earmarked to serve the mining sector. 

Caribbean

After awarding contracts in its call to supply 100MW from renewable energy, Jamaica’s government plans to launch a process for 168MW in the near term.

Puerto Rico has a call underway for tranche 4 of the government’s renewable energy and storage procurement process. 

And Guatemala is set to begin a tender for 15-year PPAs, including all technologies.

Colombia

In Colombia, solar projects are expected to feature in three upcoming reconfiguration auctions for firm energy supply. These include existing plants and those under development. 

BNamericas reported in July that there were 202 solar projects totaling 8.8GW in the registry of energy ministry planning unit UPME. But this is not necessarily an accurate reflection of how much capacity will start operating in the coming years. 

The mines and energy ministry has a plan to reach 6GW of NCRE capacity by 2026. Although it has not provided specific forecasts for each renewable technology, BNamericas believes the vast majority of new NCRE capacity in the coming years will be solar given the delays facing wind developers, particularly in La Guajira department.

Mexico

In Mexico, former president Andrés Manuel López Obrador cancelled auctions for renewable energy and there have been no proposals to restart them. According to GlobalData, PV installed capacity will increase at a CAGR of more than 10% during 2022-35.