Latin America Renewable Energy Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

The Latin America renewable energy market attained a volume of 300.80 Gigawatt in 2024. The industry is expected to grow at a CAGR of 4.10% during the forecast period of 2025-2034. By 2034, the market is expected to reach 449.56 Gigawatt.

The growing population and industrialization are driving an increased demand for clean energy, favoring the Latin America renewable energy market revenue. As per industry reports, the population of Latin America and the Caribbean reached 663 million people in 2024, further necessitating a large expansion in energy infrastructure. As urbanization and industrial activity intensify, energy consumption across commercial, residential, and industrial sectors is projected to rise significantly. In response, governments and energy stakeholders are leveraging advanced data modelling and predictive analytics to forecast energy demand patterns and optimize infrastructure development. These technologies enable more accurate planning and resource allocation, supporting efforts to meet future energy needs without compromising environmental goals.

The strong commitment towards net zero emissions is increasing the Latin America renewable energy market value. Supporting with industry reports, nearly half of the 33 Latin American and Caribbean nations, including Brazil, Chile, Costa Rica, and Colombia, have committed to achieving net-zero emissions by 2050. These commitments are backed by international agreements, national policies, and investments in renewable energy infrastructure. The goal of net-zero emissions also involves the transition towards renewable energy sources for enhancing energy efficiency while implementing carbon capture technologies. These factors are contributing to global climate change mitigation efforts.

Key Trends and Developments

February 2025

Climate Fund Managers expanded its presence in Latin America with investments in Colombia’s PCH Nare hydropower and Pétalo del Norte I solar projects. These initiatives are helping to generate clean energy, mitigate carbon emissions, and support Colombia’s energy access and climate goals.

January 2025

AES Chile, via its subsidiary AES Andes, acquired the 171 MWp Atacama Solar photovoltaic plant in northern Chile. This strategic move enhanced AES’s renewable portfolio with plans for a battery energy storage system to improve energy reliability and support clean energy growth in Latin America.

June 2024

Italy’s Enel Green Power’s subsidiary Enel Colombia successfully commenced commercial operations of a 240 MW solar photovoltaic project. This milestone strengthened Colombia’s renewable energy capacity while supporting the country’s transition to clean power and contributing significantly to sustainable development goals.

September 2023

World Bank Group’s MIGA issued a USD 536 million guarantee to support Mexico’s CFE in rehabilitating seven hydropower plants. This upgrade helped to increase capacity by 113 MW, generate 1,500 GWh annually, and boost Mexico’s renewable energy by advancing its 35% clean energy goal by 2024.

Government Incentives and Policy Support

Government policies and incentives are increasing the Latin America renewable energy market share. Brazil, Mexico, Argentina, and Colombia are implementing tax credits, long-term power purchase agreements, and special auctions to promote renewable energy. In October 2023, Colombia initiated Latin America's inaugural auction for offshore wind projects with aims for 7 GW of offshore wind capacity by 2040. These policies are fostering competitive pricing and ensuring the integration of renewable energy into national grids while promoting a sustainable energy mix across the region.

Advancements in Energy Storage Technologies

The rising cruciality of energy storage technologies for integrating energy sources into the grid is driving the Latin America renewable energy industry. The large-scale deployment of lithium-ion batteries is offering greater integration of renewable sources and increased reliability of power grids. In August 2023, Hoppecke's lead-acid batteries were supplied to Brazil's "Mais Luz para Todos" initiative to provide reliable electricity to remote communities in the Amazon. These advancements are enhancing grid stability and enabling the efficient use of intermittent renewable energy, supporting the transition to a low-carbon energy system in Latin America.

Integration of Electric Vehicles

The electrification of transport is gaining momentum in the Latin America renewable energy market with rising efforts to reduce carbon emissions. As per industry reports, 30% of Santiago's buses, comprising a fleet of almost 7,000 buses were electric in 2023. Governments are also offering tax breaks on the import and purchase of electric vehicles, promoting the adoption of electric vehicles powered by clean energy. This transition is supporting the region's decarbonization goals and enhancing air quality.

Development of Green Hydrogen Projects

Green hydrogen is emerging as a key component of energy transition in the Latin America renewable energy market. Countries, such as Chile, Brazil, and Colombia are developing green hydrogen production and export hubs for targeting European and Asian markets. In December 2024, Mexico disclosed plans of investing USD 21 billion across 18 clean hydrogen projects for reducing greenhouse gases while advancing a green hydrogen industry. This can be attributed to rising prominence of green hydrogen as a versatile energy carrier for industry and transport, contributing to the decarbonization of hard-to-abate sectors.

Regional Integration of Energy Markets

Rising collaborations among Latin American countries is helping to optimize the usage of natural resources while ensuring greater stability in energy supply, subsequently influencing the Latin America renewable energy market growth. In November 2022, AES Andes reactivated the bidirectional energy exchange between Chile and Argentina via its 345 kV InterAndes transmission line. This integration is enhancing energy security, facilitating the sharing of renewable resources, and supporting the transition to a low-carbon energy system across national borders.

Latin America Renewable Energy Industry Segmentation

The report titled “Latin America Renewable Energy Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Hydropower
• Onshore Wind
• Solar
• Bio Energy
• Others

Key Insight: Hydropower dominates the Latin America renewable energy market due to the presence of abundant river systems and favorable geography. Brazil, Colombia, and Paraguay are investing heavily in large-scale hydropower plants. Supporting with an instance, in May 2025, Brazil unveiled a R$10 billion investment for targeting the Northeast Region with a strong emphasis on green hydrogen development. Hydropower further accounts for a significant share of electricity generation, providing reliable and cost-effective energy. The segment benefits from well-established infrastructure and government support, making it a backbone of Latin America’s renewable energy mix.

Market Breakup by Country

• Brazil
• Argentina
• Mexico
• Others

Key Insight: Brazil renewable energy market is primarily driven by its vast hydropower resources. As per industry reports, hydroelectricity accounted for 60.2% of Brazil’s total electricity generation in 2023. Additionally, Brazil is expanding its wind and solar capacities, supported by government auctions and incentives. The growing bioenergy sector, especially sugarcane-based ethanol production, is also diversifying Brazil’s renewable mix. The strong regulatory framework and investments in infrastructure position are further making Brazil a leader in clean energy.

Latin America Renewable Energy Market Share

Rising Demand for Onshore Wind & Solar Energy in Latin America

The onshore wind segment of the Latin America renewable energy market is rapidly growing, driven by favorable wind conditions and supportive policies, mainly in Chile and Mexico. The competitive costs and ability to complement hydropower during dry seasons are making wind power attractive. Governments are promoting wind through auctions and incentives, further encouraging private investments. Technological advancements, lower costs, and growing emphasis on diversifying the renewable energy portfolio across the region are also favoring the segment growth.

The Latin America renewable energy industry from the solar segment is fueled by high solar radiance and declining technology costs. Solar power is experiencing rapid growth in the region, supported by government auctions and incentives. For instance, in May 2025, the Brazilian Development Bank approved BRL 156 million for supporting distributed solar projects designed by GreenYellow. The surge in distributed generation, rural electrification, and utility-scale installations is also driving solar power uptake in expanding clean energy access in the region.

Latin America Renewable Energy Market Regional Analysis

Argentina & Mexico to Witness Higher Renewable Energy Deployment

Argentina is a leading country in the Latin America renewable energy market, particularly in wind and solar power. Projects, such as the 100 MW Cauchari solar park in Argentina, is one of Latin America’s largest, highlighting the country’s solar potential. Wind farms in Patagonia are capitalizing on strong and consistent winds. Argentina’s Renewable Energy Auction Program is also attracting significant investments, encouraging diversification away from fossil fuels.

Mexico renewable energy market is characterized by robust solar and wind development, supported by abundant natural resources and favorable climate. According to industry reports, Mexico boasted a cumulative distributed solar capacity of 3.33 GW of at the end of December 2023. Mexico also hosts significant onshore wind farms in Oaxaca and Tamaulipas. The strong government focus on clean energy auctions and reforms is helping to expand renewable capacity. Mexico further remains a key player striving to balance growth with regulatory challenges.

Competitive Landscape

Key players in the Latin America renewable energy market are employing diverse strategies to capitalize on the region’s vast natural resources and the higher demand for clean energy. Investments in large-scale solar and wind projects are assisting in leveraging favorable climatic conditions as well as government incentives for boosting capacities. Companies are focusing on diversifying their energy portfolios by integrating hydro, biomass, and geothermal sources to improve grid stability and reduce dependency on fossil fuels. Additionally, community engagement and social responsibility initiatives are prioritized to ensure local support and sustainable development.

Forming strategic partnerships and joint ventures with local firms and international investors are navigating regulatory complexities, securing financing, and accelerating project development. Many players are emphasizing technology adoption and innovation by incorporating advanced energy storage solutions and smart grid technologies to improve efficiency and reliability. To address financing challenges, companies increasingly explore green bonds and sustainable financing mechanisms, tapping into global ESG investment trends. Lastly, expansion into emerging markets within the region are allowing players to exploit untapped opportunities and benefit from supportive policy frameworks.

Ingenostrum S.L.

Ingenostrum S.L. was founded in 2013 and is headquartered in Madrid, Spain. The company specializes in advanced energy storage solutions, focusing on integrating renewable energy sources with smart grid technologies to enhance energy efficiency and reliability for residential, commercial, and industrial applications.

Enel Green Power S.p.A.

Enel Green Power S.p.A., founded in 2008 and headquartered in Rome, Italy, is a global leader in renewable energy. The firm develops, builds, and operates power generation facilities from solar, wind, hydroelectric, and geothermal sources, promoting sustainable energy solutions across multiple continents.

Gauss Energy

Gauss Energy was founded in 2014 and is headquartered in Valencia, Spain. The company focuses on innovative energy storage systems using advanced battery technologies designed to optimize renewable energy integration and provide flexible, reliable power solutions for utilities and commercial customers.

First Solar, Inc.

First Solar, Inc. was founded in 1999 and is headquartered in Tempe, the United States. The firm manufactures and sells thin-film photovoltaic solar modules and offers utility-scale solar power solutions, aiming to deliver affordable and sustainable solar energy worldwide.

Other players in the Latin America renewable energy market are Atlas Renewable Energy, and others.

Key Features of the Latin America Renewable Energy Market Report:

• Detailed quantitative analysis of market size, growth, and forecast through 2025.
• In-depth coverage of solar, wind, hydro, biomass, and geothermal energy segments.
• Regional insights highlighting key countries like Brazil, Chile, and Colombia.
• Competitive landscape with profiles of leading renewable energy market players.
• Analysis of government policies, incentives, and regulatory frameworks influencing growth.
• Identification of emerging trends, challenges, and investment opportunities in the region.

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• Reliable and accurate market data supported by extensive research methodologies.
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• Continuous updates reflecting latest market developments and future outlooks.