Latin America accelerates energy storage expansion through battery technology

energy storage battery energy storage systems renewable energy transition BESS Latin America energy market

Latin America is experiencing a rapid expansion in energy storage capacity, driven by the integration of renewable energy sources. According to the Latin American and Caribbean Energy Organization (OLACDE), battery energy storage system (BESS) capacity in the region reached 3,408 MW in August 2026, more than doubling from 2025 levels.

Chile leads the regional expansion with approximately 2,291 MW of operational BESS capacity, accounting for nearly two-thirds of the region's total. Engie Chile has recently commissioned two new plants, BESS Lo Aguirre and BESS Tamaya, providing a combined 1,100 MWh to strengthen the national electrical system.

Mexico is also making significant strides. The Federal Electricity Commission (CFE) has outlined a development program for 2026-2030 involving massive investments in generation and distribution. The government aims to increase renewable energy participation to 38% by 2030, with plans to incorporate over 2,200 MW of storage.

Other regional developments include Argentina adjudicating over 1,400 MW of storage and Cuba beginning to implement BESS, though it currently utilizes only a small fraction of its installed solar capacity due to storage limitations.

Entities

Chile · Comisión Federal de Electricidad · Comisión Nacional de Energía · Cornex · Edward Veras · Engie Chile · Mexico · Organización Latinoamericana y Caribeña de Energía · Wood Mackenzie

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] CFE anticipates 52 generation projects totaling 18,597 MW as part of its development program. www.pv-magazine-mexico.com
[○ 1 SOURCE] Expansion plans aim to reduce the average energy purchase price from 15 cents to 12 cents per kilowatt-hour. elpregonerord.com
[○ 1 SOURCE] The financial deficit of distribution companies in the Dominican Republic could be reduced by $500 million by 2028. elpregonerord.com
[○ 1 SOURCE] Mexico's CFE plans to invest 651,000 million pesos ($32.9 billion) in generation, transmission, and distribution between 2026 and 2030. www.pv-magazine-mexico.com
[○ 1 SOURCE] The Lo Aguirre and Tamaya projects provide a combined storage capacity of 1,100 MWh. logistica360chile.cl
[○ 1 SOURCE] Engie Chile has commercially launched two battery energy storage systems (BESS), Lo Aguirre and Tamaya. logistica360chile.cl