Latin America. Growth in renewable energy generation reached double-digit figures globally during 2021 and 2022 (16.5% and 14.7%, respectively).
These figures were presented in the latest statistical report of the Energy Institute, Statistical Review of World Energy, which highlights the high potential of Latin America in this area.
According to this research, the region is one of the most suitable for the development and generation of renewable energies, such as low-power solar, wind and hydroelectric power.
On the other hand, Global Energy Monitor recently pointed out that the region's large-scale wind and solar capacity could grow by 460% by 2030, going from a current cumulative of 69 GW to an estimated 390 GW (+319 GW)). This is without taking into account what hydroelectric plants could contribute.
If this scenario comes to pass, Brazil, which is the current regional leader in utility-scale solar and wind farms, could add 217 GW of renewable capacity by 2030, while Chile, Colombia, Mexico, Peru and Argentina would contribute approximately 95 GW.
However, Latin America today has growth rates below the global average (15.5% in 2021 and 11.7% in 2022).
Obstacles to development
KPMG experts have stated that, although the region has enormous potential for the development of this type of energy, there are factors that prevent a large sustainable energy deployment from taking place on a large scale.
"These include: risks associated with supply chains, the structure and functioning of energy markets; policies that inhibit the development of renewable energy; access to capital; social licence and just transition, climate risk; the effects on nature and biodiversity; bottlenecks in emerging markets and permitting; finally, the lack of investment in power grid infrastructure".
For this reason, experts see a need for industry leaders to foster collaboration with other stakeholders (who will be co-creators of the environmental and economic benefits that renewable energy produces), educate on the subject (which will facilitate obtaining a social license), and continuously rely on technological innovation.