Latin America, a Major Energy Challenge

Latin America is seeing an increase in offshore wind projects in the coming years, particularly in Brazil and Colombia.

A potential for the future

Latin America is an attractive region for offshore wind projects. Capacity could reach 34GW by 2050. The offshore wind activity is likely to benefit from a growth rate of 15.4% from 2032.

The first projects are expected to come on stream around 2032, led by Brazil and Colombia. Kárys Prado is a researcher in the “Energy and Renewable Energy” division at Wood Mackenzie:

“We have seen significant regulatory movement toward offshore wind, with Brazil and Colombia providing formal roadmaps and guidelines for future activity. Both countries have an increasing number of projects planned, and the growth announced this year in Latin America already accounts for 34% of new project announcements in Q3 2022.”

In Latin America, offshore wind power will also support renewablehydrogen projects.

Continuing challenges

In Latin America, Brazil could capture about 6% of the total global renewable hydrogen supply through 2050. Thus, the market will grow from the year 2030. However, only 20% of renewable hydrogen installations in the country will have a grid connection.

Developers will have to face many challenges such as regulations, constraints related to transportation infrastructures. Despite these challenges, there is an opportunity for the industry to take off, if regulation and investment accelerate. Thus, these opportunities could have a long-term impact on global energy exporters.