Latin America Set for Record Wind, Solar Expansion in 2021

This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

  • Pandemic produced sharp drop in new wind and solar build
  • 2021 to deliver record, double-digit capacity additions

New wind and solar additions will roar back across Latin America this year, following a tough 2020. BloombergNEF expects new installations to exceed 10 gigawatts (GW) for the first time.

Broader recovery will see around 30GW of total new additions through 2023, boosting cumulative utility-scale wind and solar capacity of 48GW today by two thirds.

The record growth stems, in part, from pent-up activity as the pandemic slowed project development last year, producing a sharp downturn in net additions that broke four years of uninterrupted growth. This was compounded by regulatory upheaval in Mexico, deflating what had been one of the region’s hottest markets.

The fortunes of the region’s four main markets will diverge greatly, however. Brazil and Chile are expected to enjoy strong momentum, with delivery of delayed projects fortifying an already strong pipeline in each country linked to previous auctions and bilateral power purchase agreements. On the other hand, activity in Mexico and Argentina may wane further.

BNEF Shorts are research excerpts available only on the BNEF mobile app and the Bloomberg Terminal, highlighting key findings from our reports. If you would like to learn more about our services, please contact us.

About BloombergNEF

BloombergNEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities.
Sign up for our free monthly newsletter →

Want to learn how we help our clients put it all together? Contact us