Renewable energy capacity in Latin America (Latam) is set to rise to 123 gigawatts (GW) over the next five years, according to new analysis from Rystad Energy.
Driven by renewables growth in Brazil, Mexico, Chile, Colombia and Argentina, the continent’s total renewable capacity is estimated to increase by over 150% from its current total of 49 GW by 2025, Kallanish Energy reports.
With recent renewable energy auctions, including a 50 GW pipeline for Brazil and a 40 GW pipeline for Mexico, and low prices, Rystad stated that auctions are likely to continue driving renewable capacity growth “despite pandemic-related delays.”
The Norwegian consultancy noted that these drivers, as well as sizeable land availability, have enabled increased competition, which in turn has sparked a wave of “mega projects.” Since 2018, solar photovoltaic (PV) and wind farms with a capacity range of 50 to 300 MW have dominated the Latam market. Rystad expects such projects to comprise 70% of the region’s solar and wind assets by 2025.
Renewables growth in the region is primarily being driven by European firms, with a number of large-scale solar and wind assets owned and operated by energy companies such as Enel, Iberdrola, EDF and Engie. They are four of the top five asset owners in the region by capacity.
“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 Minh Khoi Le, renewable energy analyst at Rystad Energy.
This post appeared first on Kallanish Energy News.