Research Overview

The Latin American power and energy market is going through a considerable transformation. Renewable energies (RE) are rapidly replacing hydropower and fossil fuels’ dominance in power generation expansion as energy regulations continue to evolve to support decarbonization and decentralization roadmaps, while securing energy access for a projected average electricity demand growth rate of 1.9% per year until 2030.

Despite the pandemic, 2021 was a great year for RE deployment in Latin America, and 2022 will witness the continuity of that momentum as governments and corporations continue pursuing their sustainability targets. Frost & Sullivan predicts that more than $29.66 billion will be invested in the power generation sector in the region in 2022, with RE sources accounting for 81% of that total. The growth in RE demands increased digitalization of grids and diversification of business models, and creates opportunities for green hydrogen projects.

This Frost & Sullivan research service covers the Latin America Power and Energy market from 2020 to 2030, with 2021 as the base year. The deliverable analyzes the main trends shaping the market in the current decade, including the growth in power demand, the shift toward cleaner energy, and the evolving commitment to decarbonization, the role of gas-fired generation, and the increasing interest in green hydrogen investment, among others. The report offers power generation investment and installation forecasts segmented by generation technology, as well as country-level analysis for Argentina, Brazil, Colombia, Mexico, and Peru. It also highlights future growth opportunities and the strategic imperatives market participants need to consider to capitalize on growth opportunities.