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Market Overview

The Latin America renewable energy infrastructure market was valued at USD 52.36 billion in 2025 and is expected to reach USD 127.83 billion by 2034, growing at a CAGR of 10.43% during the forecast period of 2026 to 2034. The market's growth is driven by strong decarbonization commitments, declining renewable technology costs, abundant regional resources such as solar, wind, and hydropower, and supportive government policies fostering private investment and grid modernization.

Study Assumption Years

• Base Year: 2025
• Historical Year/Period: 2020-2025
• Forecast Year/Period: 2026-2034

Latin America Renewable Energy Infrastructure Market Key Takeaways

• The Latin America renewable energy infrastructure market size was valued at USD 52.36 billion in 2025, growing at a CAGR of 10.43% from 2026 to 2034.
• Solar energy infrastructure dominated with a 44% market share in 2025 due to declining photovoltaic module costs and abundant solar resources.
• Power generation equipment led the component segment with a 37% share in 2025, supported by utility-scale solar and wind projects.
• Utility-scale renewable projects held the largest application segment, accounting for a 54% share in 2025.
• Brazil dominated the market with a 38% share in 2025, leveraging its renewable resources and regulatory framework.

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Market Growth Factors

Latin American national governments invest in renewable energy infrastructure and develop it by competitive energy auctions, tax credits, and regulation. Brazil's renewable energy auction system eases investment into renewable energy infrastructure because it predicts revenues and it ensures the auction process is transparent. Chile legislated energy storage and electromobility which spurred standalone battery storage deployment, and the country leads regionally in this sector. In Mexico, they show renewed openness toward private investments through the goal that they ratified of renewing the renewable energy share to 45 percent by 2030.

Factors leading to lower cost of generation and storage include solar PV modules, wind turbines, and battery energy storage, with solar PV prices falling dramatically in the last decade and allowing record installations in Brazil at competitive prices. Wind energy now competes equally with fossil fuels in Brazil, and people have been deploying it. In 2025, worldwide, the price of lithium-ion battery packs had fallen to USD 108 per kWh for EVs and USD 70 per kWh for stationary storage by a 45 per cent drop from 2024.

Corporate and industrial decarbonization efforts create additional demand for renewable power through PPAs or by investing in renewable facilities directly. Power purchase agreements are being sought throughout Chile, Peru and Brazil, where mining firms aim to procure renewable power. Latin American data centers growth should increase renewable energy investments. Industrial electricity sells at low prices, and renewable resources exist in ample amounts to attract energy-intensive industries.

Market Segmentation

Energy Source:

• Solar Energy Infrastructure: Dominates with a 44% share in 2025, driven by exceptional solar resources, decreasing photovoltaic costs, supportive net metering policies, and robust distributed generation totaling approximately 37.4 GW in Brazil.
• Wind Energy Infrastructure: Expanding due to abundant wind resources in Patagonia, northeastern Brazil, and recent large-scale wind projects.
• Hydropower Infrastructure: Features an extensive legacy supporting renewable capacity.
• Biomass & Waste-to-Energy: Recognized as a renewable energy source within the market.
• Geothermal Energy Infrastructure: Included among energy sources, leveraging the region's geothermal potential.

Component:

• Power Generation Equipment: Holds a 37% market share in 2025, driven by demand for solar panels, wind turbines, hydroelectric dams, and related equipment. Brazil's solar panel production capacity is expanding, and partnerships like Casa dos Ventos and Vestas for an 828 MW wind complex demonstrate investment.
• Grid Infrastructure: Critical for renewable integration and transmission expansion.
• Energy Storage Systems: Includes battery storage and pumped hydro storage, addressing grid integration challenges.
• Smart Grid & Digital Solutions: Enhances grid management and efficiency.

Application:

• Utility-Scale Renewable Projects: Largest segment with a 54% share in 2025, supported by government auctions, power purchase agreements, and economies of scale enabling cost-competitive electricity.
• Commercial & Industrial Installations: Significant for corporate decarbonization efforts.
• Residential Renewable Energy Solutions: Emphasizes distributed generation adoption.

Country:

• Brazil: Largest market with a 38% share in 2025, benefiting from robust auction systems, transmission expansion, and strong investor confidence.
• Mexico, Argentina, Colombia, Chile, Peru, Others: Recognized as part of the regional market, supporting overall growth.

Regional Insights

Brazil dominates the Latin America renewable energy infrastructure market with a 38% share in 2025. The country boasts a predominantly renewable electricity mix, with wind and solar comprising a substantial portion of demand. Brazil achieved a record 10.9 GW installed power capacity growth in 2024, with over 91% renewable additions. Its strong framework, auction systems, and resource base attract significant investment, supporting continued expansion.

Recent Developments & News

In November 2025, Engie Chile energized its 116 MW, 660 MWh Tocopilla Battery Energy Storage System in the Antofagasta region, marking its first large-scale standalone battery storage project in Chile. This project is located at the site of a former coal-fired power plant, exemplifying the region's transition toward renewable energy storage facilities.

Key Players

• Casa dos Ventos
• Vestas
• Engie Chile
• Atlas Renewable Energy
• Colbun SA
• Scala Data Centers
• Serena

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