Market Overview
The Latin America renewable energy infrastructure market size reached USD 47.2 Billion in 2024. Forecasts indicate the market will expand to USD 127.6 Billion by 2033, with an impressive CAGR of 10.80% during 2025-2033. Growth is driven by government incentives, rising energy demand due to population growth and urbanization, and abundant renewable energy resources including solar, wind, and hydro power.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Latin America Renewable Energy Infrastructure Market Key Takeaways
- The market size was USD 47.2 Billion in 2024. The forecast period 2025-2033 anticipates a growth CAGR of 10.80%, targeting USD 127.6 Billion by 2033.
- Government incentives and favorable policies across countries such as Brazil and Chile have propelled renewable energy investments through tax advantages and subsidies.
- Increasing urbanization in Latin America is driving up electricity demand, encouraging investments in scalable solar and wind energy projects.
- Global decarbonization efforts under agreements like the Paris Agreement have heightened demand for sustainable energy infrastructure in the region.
- International financing from development banks and private investors supports new infrastructure projects, underscoring Latin America’s role in global carbon neutrality.
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Market Growth Factors
Governments in Latin America are key drivers by implementing strong policies and incentives for renewable energy. Countries such as Brazil and Chile have established progressive policies including renewable energy auctions that encourage domestic and foreign investment. Governments offer tax advantages, financial subsidies, and benefits to promote wind, solar, hydroelectric, and clean energy technologies, facilitating a significant shift from fossil fuels to renewable sources. These initiatives boost market growth, creating a robust structure supporting renewable energy infrastructure developments across the region.
Rapid population growth and urbanization are escalating electricity demand in Latin America. Increased migration to urban centers heightens strain on existing energy infrastructure, necessitating reliable and scalable energy solutions. Solar and wind power systems offer decentralized, scalable options that reduce transmission losses and enhance grid reliability. Investments by governments and energy firms in renewable infrastructure help meet the electricity needs of growing urban populations while reducing fossil fuel imports, as exemplified by the U.S. Department of Energy’s $1.2 billion investment in a 100-megawatt solar facility with battery storage in Puerto Rico.
The global push for decarbonization amplifies Latin America’s renewable energy infrastructure market. The Paris Agreement has obligated countries to transition from fossil fuels to renewable energy to combat climate change. Latin America’s optimal renewable resources position it as a crucial contributor to this transition. The United Nations Climate Summit projects a 460% increase in utility-scale wind and solar capacity by 2030. This growth attracts investments from international development banks and private entities, fueling new infrastructure projects aligned with global carbon neutrality ambitions.
Market Segmentation
Energy Source Insights
- Solar Energy Infrastructure: The report covers extensive development and investment in solar power projects due to abundant solar resources in the region.
- Wind Energy Infrastructure: Wind power is a key segment driven by favorable government policies and expanding installations.
- Hydropower Infrastructure: Hydro infrastructure contributes significantly, supported by natural water resources and government incentives.
- Biomass & Waste-to-Energy: This segment explores energy recovery from biomass and waste, contributing to diversified renewable sources.
- Geothermal Energy Infrastructure: Geothermal projects capitalize on Latin America’s geothermal potential as part of the renewable mix.
Component Insights
- Power Generation Equipment: Includes solar panels, wind turbines, and hydroelectric dams, critical for harnessing renewable energy.
- Grid Infrastructure: The report examines investments in expanding and upgrading transmission and distribution networks.
- Energy Storage Systems: Encompassing battery storage and pumped hydro storage solutions, storage is vital for grid stability.
- Smart Grid & Digital Solutions: These innovations optimize energy management and grid efficiency across renewable energy installations.
Application Insights
- Utility-Scale Renewable Projects: Large-scale projects delivering bulk power to grid systems dominate investments.
- Commercial & Industrial Installations: Renewable energy solutions tailored for businesses contribute to demand.
- Residential Renewable Energy Solutions: Growing installations of renewables at the household level reflect consumer adoption trends.
Regional Insights
Brazil emerges as the dominant market within Latin America for renewable energy infrastructure, supported by significant investments and policy initiatives to consolidate solar and hydro assets, such as Vale’s $1 billion partnership with GIP. The region as a whole is forecasted to grow at a CAGR of 10.80% from 2025 to 2033, driven by abundant natural resources and government incentives.
Recent Developments & News
On 9 October 2024, the International Union for Conservation of Nature (IUCN) partnered with global infrastructure firm REDEIA, formerly Red Eléctrica de España, to advance environmentally friendly energy infrastructure in Latin America and Spain, also focusing on biodiversity conservation. On 28 August 2024, Scala Data Centers, a leading Latin American sustainable firm, formed the largest renewable energy alliance with Serena to supply wind power to hyperscale data centers, enhancing Scala’s renewable energy portfolio.
Competitive Landscape
The competitive landscape of the industry has also been examined along with the profiles of the key players.
About Us
IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
