Latin America Renewable Energy Market Outlook 2026–2034: Growth, Trends, and Future

The renewable energy market in Latin America is growing fast, thanks to the region’s abundant sunshine, wind, and water resources. Governments are supporting this shift with policies and incentives, while businesses and investors see opportunities as technology costs drop. Rising energy needs, concerns over energy security, and a desire to combat climate change are all pushing the move away from fossil fuels. People across the region are embracing cleaner, more sustainable energy for a greener future.

Key Facts and Statistics

• Latin America is taking the lead on the global stage, more than 60% of the region’s electricity already comes from renewable sources—twice the global average—and countries are aiming even higher, targeting a 70% share by 2030.
• The International Energy Agency predicts that renewable capacity in Latin America will grow by about 165 gigawatts between 2023 and 2028, nearly doubling what’s installed today.
• Brazil stands out with an impressive 89% of its electricity coming from renewables, placing it just behind Norway, which sits at 98.5%. Other major markets in the region are also making significant strides: Colombia generates 75% of its electricity from renewables, while Chile produces 55%.
• The region’s natural advantages make this progress possible. Latin America receives some of the highest levels of solar radiation in the world, creating ideal conditions for solar power and photovoltaic systems.
• Brazil is leading the way in solar deployment, with over 60 gigawatts already installed and expectations to reach 100 gigawatts by 2029.

Market Opportunities:

Strong Investment Pipeline: Latin America is packed with wind and solar potential, and the region has set ambitious clean-energy targets. Around 125 major projects are expected to move forward, adding up to a whopping 66 GW of capacity and an estimated $66 billion in investment.

Diverse Financing Sources: Funding for projects is coming from both public and private sectors, with development banks and international financial institutions (DFIs) playing a critical role. In Brazil, for instance, BNDES offers long-term, low-interest loans of up to 16 years, covering as much as 80% of a project’s costs.

Innovative Structures and Corporate Demand: Big companies and industrial users are increasingly taking renewable energy into their own hands. They’re using strategies like self-supply power purchase agreements (PPAs) or equity investments to secure clean power directly.

Latin America’s Renewable Energy Market Competitive Landscape

Latin America’s renewable energy sector is on the rise, fuelled by abundant wind and solar resources and ambitious clean-energy goals. Around 125 major projects are in the works, adding up to 66 GW of capacity and $66 billion in investment. Funding comes from a mix of development banks, DFIs, and private investors, with programs like Brazil’s long-term, low-interest BNDES loans making large-scale projects possible.

Leading developers—Atlas Renewable Energy, Yinson Renewables, and Verano Capital—are driving growth across Colombia, Chile, Mexico, and Peru. Corporate demand for clean energy is also growing, with innovative PPAs and equity deals reshaping the market. Competition is fierce, with both regional and international players vying for a piece of the action.

Recent Projects

• Shangri-La Solar Plant (Colombia): Developed by Atlas Renewable Energy, this 201 MWp solar project in Colombia is set to start operations by the end of 2025, bringing clean energy to the region.
• Windpeshi Wind Farm (Colombia): Acquired by Ecopetrol from Enel, the 205 MW Windpeshi Wind Farm is expected to be up and running before 2028. Once operational, it will make a meaningful contribution to Colombia’s growing wind energy capacity.
• Solar Projects Pipeline (Chile, Colombia, Peru): Yinson Renewables and Verano Capital are working on an ambitious 800 MW solar project pipeline across Chile, Colombia, and Peru. These projects are still in the early development stages but hold significant potential for the region’s renewable energy growth.
• H2 Magallanes Wind Farm (Chile): This massive 10 GW onshore wind project in Chile is designed to support green hydrogen production. Targeted for commissioning around 2027, it represents a major step toward sustainable energy at scale.
• La Pimienta Solar Park (Mexico): Also developed by Atlas Renewable Energy, this mid-sized solar project in Mexico has a capacity of 315 MW and is currently under development, helping expand clean energy in the country.