The Latin American wind power market is experiencing growth due to rising electricity prices, reliance on costly petroleum, and sustainability challenges with hydropower. Countries are increasingly investing in wind energy, with aims to reach 10 GW of installed capacity by 2017, particularly in Brazil and Mexico, where government initiatives are fostering development. Forecasts predict significant annual installations and a robust pipeline of projects contributing to the sector's expansion through 2022.

1. Latin American Wind
Power Market
Blowing Strong
Rising electricity prices, growing dependence on costly
petroleum and less sustainability of hydropower has led
Latin American countries to increasingly resort to wind
power. Wind power is a lucrative energy alternative to
cater to the growing demand for electricity in the region.
Installed Wind Power Capacity in Latin America* in Gigawatts (GW)
Honduras
Costa Rica
Nicaragua
Total
2012: 5.067
2013: 6.681
31.9%
Cumulative Wind Power Market in Latin America in GW (Forecast)
9.8
7.8
4.8
Expected Wind Energy Installation During 2014 - 2022
Largest Latin American wind power market predicted to witness 1.5 GW of wind
energy installation annually until 2016.
Robust pipeline of contracted projects and ongoing construction of transmission
infrastructure to drive growth.
Aim to install 10 GW of wind energy by 2017.
Auctioned 11 times (since 2009) securing 13.2 GW of wind power contracts.
Other Key Highlights
of this Growing Market
Source: Global Wind Energy Council, Desk Research
2012: 2.508
2013: 3.461
38.0%
2012: 1.537
2013: 1.917
24.7%
2012: 0.205
2013: 0.335
63.4%
Dominican Republic
Caribbean***
2012: 0.142
2013: 0.218
53.5%
Brazil**
Mexico
Chile
Argentina
2012:
2013:
2012:
2013:
2012:
2013:
2012:
2013:
2012: 0.033
2013: 0.085
157.6%
Uruguay
2012: 0.056
2013: 0.059
5.4%
0.102
0.148
0.146
0.136
Others****
2012: 0.054
2013: 0.074
37.0%
Note
*includes Caribbean
**projects fully commissioned, grid connections
pending in some cases and project decommissioning
of ~374 MW and rounding aect final sums
***Caribbean: Aruba, Bonaire, Curacao, Cuba,
Dominica, Guadalupe, Jamaica, Martinique, Granada
****Others: Colombia, Ecuador, Peru, Venezuela
19.0
2019F
15.0
2018F
12.0
2017F
2016F
2015F
2014F
Brazil
Mexico
Uruguay
Chile
Argentina
Costa Rica
Nicaragua
Second largest Latin American wind power market.
Wind power installation estimated to be 1 GW in 2014
and 9 GW by 2022.
Recent amendments to the country’s constitution are
anticipated to increase competition in the petroleum and
electricity industries thereby fueling growth in the wind
power market.
Expected to install around 1 GW during
2015 - 17, mainly due to increase in the
number of government-sponsored energy
contract auctions.
Wind power market is believed to grow on
account of increasing electricity demand
coupled with increasing prices despite few
government subsidies.
The onshore wind energy industry in Argentina
and Costa Rica is expected to witness strong
developments, contributing towards the growth.
Aims to achieve 74% of its energy requirements from renewable
sources by 2017.
Invested in wind power transmission, which at times supplies
50% of the total electricity demand.
3 GW
Annual wind
energy
installation
until 2015
31.5 GW
Total expected
installation of wind
energy capacity
during 2014 - 22
4.3 GW
Annual wind
energy
installation
until 2022
Aranca’s Views
Latin American countries are undertaking various initiatives for developing the wind power
sector in order to deal with increasing electricity prices and energy demand. Factors such as
surging petroleum prices and lesser reliability of hydroelectricity as a source of energy has
driven the development of the wind power market. Brazil and Mexico are expected to lead the
growth in the Latin American wind energy market. Relaxation of norms and government policies
regarding competition, in some countries, is expected to further strengthen the region’s wind
power sector.
Compiled by: Mansi Choksi
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