At a Glance: Hydropower in Latin America

“Hydropower will likely remain the leading source of electricity in Latin America for the foreseeable future. There is still much unexploited hydroelectric potential and thus plenty of opportunities to develop new projects.”

So reads BNamericas Intelligence Series (IS) outlook The Future of Hydropower in Latin America

In its 2019 Hydropower Status Report, the International Hydropower Association (IHA) highlights that South America was the second fastest growing region in 2018, adding 4,855MW, with Brazil accounting for around 80% – driven by Belo Monte (pictured) – and the second fastest growing country after China.

Other hydro capacity contributions in the continent last year came from Ecuador (556MW), Colombia (111MW), Peru (111MW), Chile (110MW), Bolivia (55MW) and Argentina (46MW), and 80MW came online in Central America.

IHA adds, however, that hydropower development in the region is increasingly challenged by climate variability, in particular drought, and aging plants, issues also raised in the IS outlook.

Rehabilitation projects underway include the overhaul of Paraguay’s 200MW Acaray plant, the revamp of the Salto Grande complex on the Argentina-Uruguay border and the modernization of the Itaipu dam, which is shared by Brazil and Paraguay.

In the case of Mexico, the industry association points to government plans to invest 20bn pesos (US$1bn) to upgrade 60 hydro plants.

Read Spotlight: Mexico's top 5 hydro plants in 2019 budget and Mexico's new energy plan heavy on hydro

Regional interconnections are another area pointed to by IHA, such as Bolivia’s plans to dispatch surplus hydro production to Brazil, tempered by “considerable opposition from local community groups and international NGOs concerning potential environmental impacts.”

Read At a Glance: Bolivia's energy export plans

The 2019 Hydropower Status Report is available here

BNamericas’ Project Profiles feature over 260 hydropower projects in the early development and construction phase for combined investment of US$132bn.

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