Latin America Set for Record Wind, Solar Expansion in 2021

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.