Latin America, Caribbean forecast to add 190GW in renewable capacity

Latin America and the Caribbean’s installed capacity from renewable energy is projected to increase by over 190GW by 2030, a new report shows.

In its Renewables 2024 analysis and forecast, the International Energy Agency (IEA) highlights that solar PV will lead additions in the region with 72% of the total, followed by wind (19%) and hydro (5%).

The study adds that Brazil will account for nearly 60% of the build-out, with the other top markets being Chile (14%), Mexico (10%), Colombia (6%) and Argentina (4%).

“In Brazil, continued interest in distributed solar PV and bilateral agreements for utility-scale solar PV and wind power spur additions. A mix of auctions, merchant plants and rising PPAs are the impetus in Chile, while projects developed by the state-owned utility and based on wholesale market revenues lead to greater additions in Mexico. In Argentina, PPAs are the primary growth catalyst,” the research said.

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“However, regional annual additions decline after 2027 as distributed solar PV volumes in Brazil shrink because of decreasing incentives,” the study adds.

Other challenges include slow grid expansion and permitting and social acceptance obstacles, particularly in the case of hydropower due to “mounting social acceptance challenges.”

The EIA report is available in the Documents box in the top right corner.

BNamericas is tracking US$240bn in early-stage renewable energy projects in the region.