Latin America Renewable Energy Infrastructure Market Share Analysis, Development and Industry Report 2025

Market Overview

The Latin America renewable energy infrastructure market size was USD 47.2 Billion in 2024 and is projected to reach USD 127.6 Billion by 2033, growing at a CAGR of 10.80% during the forecast period 2025-2033. The market growth is driven by supportive government incentives, expanding energy demand from population growth and urbanization, and abundant renewable natural resources like solar, wind, and hydropower.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Latin America Renewable Energy Infrastructure Market Key Takeaways

• Current Market Size: USD 47.2 Billion (2024)
• CAGR: 10.80% (2025-2033)
• Forecast Period: 2025-2033
• Governments across Latin America support renewable energy (RE) infrastructure via favorable policies and incentives, including tax advantages and subsidies.
• Countries like Brazil and Chile have developed RE auctions to attract investments, with major partnerships such as Vale and GIP consolidating solar and hydro assets.
• Growing urban populations increase electricity demand, driving investments in decentralized solar and wind power to reduce fossil fuel dependency.
• Global decarbonization goals and agreements like the Paris Agreement are pushing Latin America to expand renewable energy capacity significantly by 2030.
• International development banks and private investors are funding new RE infrastructure projects, supporting the region's transition to clean energy.

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Market Growth Factors

Government Policies and Incentives

Government policies favoring tax incentives and financial aid are the main drivers of the Latin America renewable energy infrastructure market, allowing both domestic and foreign investment in the region. Brazil and Chile, for example, adopted renewable energy auctions as a way of stimulating market penetration. An example of this is Vale's sale of 70% of the company Alianca Energia to GIP in Brazil for $1 billion. This was a part of corporate sale and consolidation of solar and hydroelectric companies to encourage the growth of renewable energy generation. Government relationships are important to transition the region from fossil fuels to alternative energy sources.

Growing Energy Demand and Urbanization

Population and urbanization growth, along with electricity demand growth, are outpacing existing energy infrastructure in Latin America. Urban areas have low fossil fuel availability consequently creating electric demand shortfalls. Solar and wind electricity are scalable and can be developed close to demand. This reduces the need to generate large scale renewable electricity and transmit it through long distances with infrastructure. On behalf of the U.S. Department of Energy, $1.2 billion has been spent on solar power and battery storage in Puerto Rico. Cities around the world urbanize rapidly which shows the need for a resilient power grid. Such forces push countries to expand their renewable infrastructure to meet sustainable energy needs.

Global Demand for Decarbonization and Sustainable Energy

The need to decarbonize the global economy and commitments made in the Paris Agreement push toward the renewable energy infrastructure market in Latin America, which has the natural resources to lead in renewable energy supply. At the United Nations Climate Summit, they estimate utility-scale wind and solar power generate in the region to grow 460% by 2030. International development banks and private investors fund new RE infrastructure investments for carbon neutrality targets geared to the long run. Industry and governments face more pressure to reduce carbon footprints so demand for renewable energy infrastructure increases throughout Latin America.

Market Segmentation

Energy Source Insights:

• Solar Energy Infrastructure: Infrastructure dedicated to harnessing solar energy for electricity generation.
• Wind Energy Infrastructure: Facilities and equipment to capture wind energy for power production.
• Hydropower Infrastructure: Infrastructure encompassing hydroelectric power generation facilities.
• Biomass & Waste-to-Energy: Systems converting biomass and waste materials into renewable energy.
• Geothermal Energy Infrastructure: Infrastructure utilizing geothermal heat to produce energy.

Component Insights:

• Power Generation Equipment: Includes solar panels, wind turbines, and hydroelectric dams essential for generating renewable energy.
• Grid Infrastructure: Facilities and systems ensuring electricity transmission and distribution.
• Energy Storage Systems: Comprises battery storage and pumped hydro storage technologies for energy retention and management.
• Smart Grid & Digital Solutions: Advanced digital technologies and smart grids facilitating efficient energy management.

Application Insights:

• Utility-Scale Renewable Projects: Large-scale renewable energy generation installations supplying the power grid.
• Commercial & Industrial Installations: Renewable energy setups serving businesses and industrial operations.
• Residential Renewable Energy Solutions: Small to medium-scale renewable installations for residential use.

Country Insights:

• Brazil
• Mexico
• Argentina
• Colombia
• Chile
• Peru
• Others

Regional Insights

Brazil emerges as a dominant player within Latin America's renewable energy infrastructure market, supported by significant investments and favorable government policies. The market in Latin America is forecasted to grow at a CAGR of 10.80% between 2025 and 2033, reaching USD 127.6 Billion by 2033 from USD 47.2 Billion in 2024. This robust growth reflects the region’s commitment to renewable energy development fueled by urbanization, decarbonization efforts, and resource availability.

Recent Developments & News

• On 9 October 2024, the International Union for Conservation of Nature (IUCN) partnered with REDEIA (formerly Red Eléctrica de España), a global electricity and telecommunications infrastructure firm, to promote environment-friendly energy infrastructure in Latin America and Spain, supporting biodiversity conservation.
• On 28 August 2024, Scala Data Centers, a leading Latin American sustainable firm, formed the largest renewable energy alliance with Serena, a global leader in sustainable energy initiatives, to supply wind power to Hyperscale data centers, expanding Scala's renewable energy portfolio.

Key Players

• Vale
• GIP
• REDEIA
• Scala Data Centers
• Serena

Customization Note:

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