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Latin American energy storage market growth

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2026-08-31 22:34 UTC → 2026-09-02 12:50 UTC · added removed

Wood Mackenzie projects that energy storage capacity in Latin America will grow from 2.5 GW in 2025 to 34 GW by 2035, a 13.6-fold increase. 2035. This growth is attributed to structural issues such as grid congestion, aging infrastructure, and driven by the increasing frequency integration of renewable energy curtailment. Specific regional developments include Chile leading in and the need to address grid congestion and aging infrastructure. By August 2026, the Latin American and Caribbean Energy Organization (OLACDE) reported that battery energy storage systems system (BESS) deployment, with Engie capacity in the region reached 3,408 MW, more than doubling 2025 levels. Chile launching remains the regional leader with approximately 2,291 MW of operational BESS capacity, representing nearly two-thirds of the total. This includes the recently commissioned Lo Aguirre and Tamaya plants to by Engie Chile, which provide 1,100 MWh of capacity. In Mexico, to the national electrical system. Mexico is also expanding its footprint; the Federal Electricity Commission (CFE) has outlined a development program through 2030 focused on for 2026–2030 aiming to increase renewable energy participation to 38% and incorporate over 2,200 MW of storage. Other regional activities include Argentina adjudicating over 1,400 MW of storage, while Cuba has begun implementing BESS, though it currently utilizes only a small fraction of its solar photovoltaic projects totaling 5,477 MW. capacity due to storage limitations. In the Dominican Republic, the National Energy Commission (CNE) intends continues to reduce target a US$500 million reduction in the electricity distributors' financial deficit of electricity distributors by approximately US$500 million by 2028 through renewable integration. Meanwhile, Brazil is preparing for battery capacity auctions as companies like CORNEX expand their regional footprint. Analysts note maintain that while the project pipeline is growing, deployment may require more requires comprehensive regulatory frameworks and clear remuneration mechanisms to avoid mitigate risks such as like price cannibalization in northern Chile. cannibalization.

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  1. 2026-09-02 12:50 UTC Latin American energy storage market growth
  2. 2026-08-31 22:34 UTC Latin American energy storage market growth

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