Renewable energy capacity in Latin America is set to grow 2½ times, from 49 gigawatts today to 123 gigawatts in 2025, with Brazil, Mexico, Chile, Colombia, and Argentina leading the rise of an emerging “green powerhouse”, analysts at Rystad Energy write in a new assessment for Energy Voice News.
“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,” the Oslo-based energy business intelligence firm writes. “With prices dropping to the mid-US$20s 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,” although recent “political tumult” could slow things down in Mexico.
“The proliferation of mega-scale projects, and the relatively consistent auctions with little to no local content requirements, make Latin America a good market for large European developers,” said Rystad renewable energy analyst Minh Khoi Le. The news report cites Enel, Iberdrola, EDF, and Engie as EU companies with a growing interest in the region.
Rystad points to Enel’s 828-MW Villanueva photovoltaic project in Mexico, soon to be surpassed by Aurora Energia’s 1.3-GW Minas Gerais PV farm, as the two largest solar projects on the horizon. It identifies Brazil as the “home of multiple mega-wind complexes”, including Enel’s 716-MW Ventos de Santa Angela project and Engie’s Campo Largo complex, which comprises three separate developments: Campo Largo 1 at 326.7 MW, Campo Largo 2 at 361.2 MW, and Umburanas at 342.5 MW.