Key facts
- Latin America's installed wind energy capacity could exceed 120 GW by 2035.
- Brazil has approximately 35 GW of operational onshore wind capacity.
- Mexico aims to add nearly 30 GW of renewable energy and storage by 2030.
- Argentina's wind power capacity is nearly 4.6 GW.
- Transmission constraints and solar competition are challenges for wind energy growth.
- 92.5% of new capacity additions in 2024 came from renewable sources.
Latin America is poised for significant expansion in its wind energy sector, with projections indicating a doubling of onshore capacity by 2035. This growth is driven by countries seeking to diversify their energy sources and enhance energy security. Brazil and Mexico are at the forefront of this development, with other nations also investing in their green energy sectors.
According to a Global Wind Energy Council report, Latin America could surpass 120 GW of onshore wind capacity by 2035 and potentially begin installing offshore wind power. This expansion is part of a broader trend where renewable sources are dominating new energy capacity additions, with 92.5% of new capacity in 2024 coming from renewables, according to GWEC CEO Ben Backwell.
However, the expansion faces hurdles. Transmission constraints are a major challenge, requiring substantial investment in grid infrastructure to keep pace with project development. Kárys Prado, Senior Research Analyst at Wood Mackenzie, noted that power oversupply in markets like Brazil and Chile, following a recent renewables boom, is complicating sustained development. Headwinds from grid restrictions and strong competition from solar power are expected to slow growth in the coming years, with limited demand and insufficient infrastructure also acting as constraints.
Brazil leads the region with approximately 35 GW of operational onshore wind capacity, making it the fifth-largest globally. Its wind turbines are primarily concentrated in the northeastern region, known for consistent strong winds. Statkraft Group's Ventos de Santa Eugênia Wind Complex in Bahia is one of its largest projects outside Europe.
In Mexico, wind energy investment is projected to reach $4 billion to $5 billion by 2030, adding nearly 2.2 GW of capacity. The country currently has over 8.1 GW of installed capacity across 76 wind farms. BloombergNEF estimates Mexico could attract $630 billion in power generation investment by 2035, with green energy and storage being key. The Mexican government has a plan to add 30 GW of renewable energy and storage by 2030, aiming to boost private participation after a period of policy shifts under former President Andrés Manuel López Obrador.
Argentina has reached almost 4.6 GW of wind power capacity. The International Finance Corporation is financing the Olavarria Wind Farm and transmission capacity expansion, a project involving Acindar Industria Argentina de Aceros S.A., part of ArcelorMittal. This project, costing around $275 million, includes 29 wind turbines and a 25 km transmission line, and is notable for integrating privately financed transmission infrastructure.