Although wind plant construction across Latin America is modest compared to more established markets, such as South and East Asia, North America and Europe, Navigant Research reports that the region’s wind power industry is taking off at a rapid pace. Latin America has become the hottest growth market for the wind energy industry at a time when growth rates in other markets are flat due to a variety of policy and macroeconomic challenges, according to the report, which says annual wind power installations in Latin America will roughly double, in terms of capacity, over the next 10 years, growing from nearly 2.2 gigawatts (GW) in 2013 to 4.3 GW by 2022.
“Latin America is expected to account for at least 5.5 percent of the world’s new wind power installations in 2013,” said Feng Zhao, research director with Navigant Research. “With the strong political support of most governments and rapid economic growth fueling rising electricity demand, wind markets in the region are expected to exhibit double-digit compound annual growth rates through the next 10 years.”
The latest 2013 wind power contract auction round in Brazil resulted in prices stabilizing at higher rates, and the signing on of 1,505 MW of new wind capacity, according to the report. This suggests that the unsustainable downward trend in prices bottomed out last year, and the Brazilian market appears to be poised for strong growth moving forward. This will provide the foundation for wind energy growth across Latin America, the study concludes.
The report, “Latin America Wind Market Assessment”, provides a comprehensive view of the wind energy market dynamics at play in 15 wind power markets in Latin America. An Executive Summary of the report is available for free download on the Navigant Research website.
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on global clean technology markets.