Latin America Power & Energy Outlook, 2023

Latin America Power & Energy Outlook, 2023

Future Growth Potential Enhanced by an Accelerated Energy Transition Global Context and the Advancements in Renewable Energy Deployment

While the world witnesses unprecedented policies and investment announcements to accelerate the energy transition—like the Inflation Reduction Act, the Green Deal Industrial Plan, and China's latest Five-year Plan—what happens in Latin America? Will the region join the race for decarbonization seen in the rest of the world? How does that affect the power generation matrix to 2030?

The answers are mixed. Despite belonging to the same region, each country has a reality all its own, conditioned by resource availability, its economy, and, most importantly, the government in office. Nonetheless, figures show that RE has become a common denominator for regional power generation expansion. The economics and excellent resources for wind and solar encourage Latin American countries to achieve a leading role in the new green hydrogen economy, more necessary and feasible than ever in the context of the Russo-Ukrainian War.

The region is taking a step forward in the energy transition journey. Distributed generation has taken off in a dozen countries with no signs of turning back. The renewable corporate PPAs market is advancing, becoming the leading force for wind and solar development in Chile, Brazil, Argentina, Colombia, and Mexico. Green hydrogen projects are starting across a diversity of applications. At the same time, governments enact new regulations supporting batteries, EVs, green hydrogen, and offshore wind, while Brazil reaffirms its ambition of fully deregulating its retail power market.

This Frost & Sullivan 2023 Outlook covers the Latin America Power and Energy market from 2020 to 2030, with 2022 as the base year. We highlight the main trends shaping the market in the current decade and offer power generation investment and installation forecasts segmented by generation technology across key electricity markets.

In the growth opportunities universe section, we identify prospects for market participants to expand their businesses by providing standardized PPAs for SMEs, decarbonization energy solutions for C&I customers, and distributed generation services.