Solar, wind, hydro, and BESS opportunities in world-class markets
LATAM South is undergoing a fundamental energy transition. Chile leads with 70% renewable electricity generation and over 33% from wind and solar alone. Peru is targeting 60% renewables in its electricity mix. Argentina possesses the world's third-largest wind reserves and second-largest solar reserves. Colombia is deploying 13.5 GW of approved solar projects. For European investors, renewable energy in the region offers both standalone investment opportunities and critical support infrastructure for mining, industrial, and agricultural assets.
The practical value of renewables in LATAM South extends beyond power generation. Lower-carbon production profiles are becoming prerequisites for offtake agreements and project financing. Grid reliability and energy cost resilience directly impact mining competitiveness. Green hydrogen potential positions the region as a future energy exporter. Execution, however, requires navigating transmission constraints, permitting complexities, and community engagement.
Peru's energy mix is diversifying beyond its traditional hydropower dominance (5.23 GW installed, 47% of generation). Renewables constituted 59% of Peru's electricity in 2024, with wind and solar reaching 8%. The country targets 20% wind and solar by 2030 and is advancing a project pipeline of 67 GW, led by hydro and solar. Notable projects include San Gaban III (210 MW hydro), Hanaqpampa (300 MW solar), and Quercus (452 MW wind). Non-hydro renewable capacity is projected to surge from 2.3 GW in 2024 to nearly 13 GW by 2035.
Recent reforms to the Electricity Generation Law have introduced competitive tenders for all technologies, requiring hydro to compete with solar, wind, and gas on cost. Climate variability, including droughts and El Nino events, has exposed hydropower dependence, making diversification a strategic imperative. Between 2025 and 2030, approximately USD 2 billion in hydropower investment is expected.
Sources: IRENA Peru Profile; IEA; Enerdata; Power Technology; Norton Rose Fulbright.
Chile is the undisputed renewable energy leader in LATAM South. In 2024, renewables supplied 70% of electricity (up from 47% five years earlier), with wind and solar alone generating 33%. Solar accounted for 21% and wind 12% of total generation. Total installed renewable capacity reached 25.5 GW out of 37.4 GW total by May 2025. The northern Atacama Desert offers some of the highest solar irradiance globally.
Chile's project pipeline is massive: 318 approved solar projects and 33 approved wind projects, with combined capacity of approximately 34 GW under approval or construction. The Energy Transition Law, enacted in December 2024, prioritizes expediting transmission works. Battery energy storage (BESS) is gaining traction with 2.56 GW in approved/construction pipeline. Chile targets carbon neutrality by 2050, with solar projected to contribute 19%, wind 23%, and hydro 29% by then.
Sources: Ember Energy; U.S. Trade.gov Chile Energy; IEA Chile 2050 Roadmap; IRENA Chile Profile.
Colombia's renewable energy sector is in a growth phase, with solar and wind capacity rising from 1.5% of total capacity in 2022 to approximately 9% by end-2024. Solar capacity reached 1,928 MW, with 32 solar projects (5,022 MW) and 9 wind projects (1,571 MW) under construction. The country has approved 13.5 GW of solar and 2.8 GW of wind for the 2023-2033 period. La Guajira offers world-class wind resources with capacity factors near 65% and 18-21 GW of potential.
The Just Energy Transition (TEJ) scenario targets 15.2 GW solar, 2.95 GW onshore wind, and 3 GW distributed generation by 2030, with 7 GW offshore wind planned for 2030-2040. Investment needs are estimated at USD 35-104 billion through 2052. However, investment fell 70% between 2022 and 2023 due to tax incentive changes and high capital costs. Regulatory uncertainty, including the annulment of Decree 570 affecting renewable auctions, has impacted investor confidence. Colombia could attract up to USD 2.2 billion in renewable investment in 2024 across 66 near-production projects.
Sources: SEI Colombia Report 2025; Chambers Renewable Energy Guide 2025; Reuters; WRI Colombia.
Argentina possesses extraordinary renewable resources: the world's third-largest wind reserves (exceeding 2,000 GW potential, concentrated in Patagonia) and second-largest solar reserves. Renewables constituted 16% of power generation in 2024, with wind contributing 70% of renewable output. Installed wind capacity has grown from 227 MW to 2,624 MW since 2017, and solar from 9 MW to 764 MW. The country has 57 wind farms with approximately 900 turbines generating 10% of total electricity.
Argentina's green hydrogen ambitions are significant: the National Hydrogen Development Strategy targets 5 million tonnes annually by 2050, requiring 30 GW of electrolysis and 55 GW of renewable capacity. Major projects include the Pampas project (USD 8.4 billion, 2,000 MW wind/solar, 2.2 Mt/y green H2) and Gente Grande in Tierra del Fuego (USD 6 billion, 1.5 Mt/y H2). The RIGI framework and Decree 749/2024 offer tax breaks for renewable projects. Generation is projected to nearly double to 50 TWh by 2028. Transmission infrastructure remains the key bottleneck.
Sources: U.S. Trade.gov Argentina Energy; Net Zero Circle; PTX Hub Patagonia; IRENA Argentina Profile.
Renewable energy across LATAM South offers diverse entry points for European investors:
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