LatAm renewables capacity seen doubling by 2025

Installed renewable energy capacity in seven Latin American countries – Mexico, Colombia, Peru, Chile, Argentina, Uruguay and Brazil – is expected to double from 37GW to 75GW through 2025, according to Moody's.

"Argentina and Mexico have the most ambitious carbon targets, while Uruguay is well placed to meet its goal with clean energy representing 97% of electricity output in 2016," the ratings agency said in a report. "Brazil has a large pipeline of renewables projects in construction, but subdued economic growth has put a pause on new auctions."

Latin America's endowment of renewable resources, combined with "a rapid decline in technology costs, supportive regulatory policies and fiscal incentives are facilitating the implementation of clean-energy sources across the region."

However, "Transmission bottlenecks, macroeconomic uncertainties, a trend of lower auction prices and increasing financing costs could all affect returns on investment and hinder the penetration of renewable resources."

The seven countries have 16.3GW of renewable capacity under construction or auctioned that should come online over the next two or three years, the report said.

"Still, we believe that another 22GW will be required just for those countries to achieve their carbon reduction commitments through 2025," said Moody's, pointing out that nearly all countries in the region are committed under the Paris agreement to mitigate climate change through carbon reduction policies.