South America Renewable Energy Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | 7.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Renewable Energy Market Analysis
The South American market for renewable energy is expected to register a CAGR of more than 8% from 2022 to 2027.
The market was negatively impacted by COVID-19 in 2020. Currently. The market has reached pre-pandemic levels.
- Long-term, things like government policies and efforts to meet the growing need for power with renewable energy sources are expected to contribute a lot to the growth of the market.
- On the other hand, the South American renewable energy market is expected to slow down during the forecast period due to a lack of transmission infrastructure that can send and distribute renewable energy.
- Even so, putting the region's large offshore wind potential to commercial use and developing it are still big opportunities for the market after the forecast period.
South America Renewable Energy Market Trends
This section covers the major market trends shaping the South America Renewable Energy Market according to our research experts:
Solar Energy is Expected to Witness Significant Growth
- South America witnessed a significant jump in its total installed solar capacity, which went up to 19.65 GW in 2021 from 3.67 GW in 2017. Brazil and Chile are the major contributors to the region's increased solar capacity.
- Brazil will hold 13.05 GW of solar installed capacity in 2021. In Chile, the installed solar capacity was 4.47 GW in 2021. Argentina, on the other hand, produces a small amount of solar energy, with an installed capacity of 1.07 GW in 2021.
- Brazil's solar energy market is rising due to the increasing demand for electricity. Furthermore, the falling costs of solar power modules, coupled with government initiatives to increase renewable shares in the total energy mix, are driving the solar power market in the country.
- Furthermore, due to abundant resource endowment and enabling solid policies, South America's solar energy capacity alone is expected to grow by a factor of 40 by 2050 to more than 280 GW.
In December 2022, Equinor reached a final investment decision on the 531 MW Mendubim solar project in Rio Grande do Norte, Brazil. The project is a joint venture between Scatec, Hydro Rein, and Equinor and is being built at an estimated investment of USD 431 million. The three companies will jointly provide project engineering, procurement, and construction services. Scatec and Equinor have agreed to offer asset management services, as well as operation and maintenance services, for the solar facility.
Brazil is Expected to Dominate in the market
- With a total installed capacity of 159.94 GW in 2021, Brazil is South America's top renewable energy-producing country. The country generates more than 68% of its renewable energy from hydropower facilities. Its total hydropower capacity was 109.42 GW in 2021.
- The country is home to some of the world's largest hydropower facilities, including the 14 GW Itaipu hydroelectric project, which it jointly owns with Paraguay. The Belo Monte hydropower plant is expected to cost USD 18.5 billion.
- Brazil has also led to the growth of wind energy in South America over the past decade. In 2021, the country had a total wind energy capacity of 21,16 GW, which was more than 71% of the total capacity of the region.
- Solar power in the country has also witnessed significant growth, with the capacity increasing to 13.05 GW in 2021. Bioenergy is also a significant contributor to Brazil's total renewable energy capacity. In 2021, the country's total capacity for this power form was 16.3 GW.
- During the forecast period, renewable energy projects in Brazil are expected to lead the market because of the projects that are coming up and the ones that are already being built.
South America Renewable Energy Industry Overview
The South America renewable energy market is fragmented. Some of the major companies, in no particular order, include Enel Green Power S.p.A., Iberdrola S.A., Aes gener sa, Vestas Wind Systems A/S, and Electricite de France SA, among others
South America Renewable Energy Market Leaders
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Enel Green Power S.p.A.
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Iberdrola S.A.
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Aes gener sa
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Vestas Wind Systems A/S
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Electricite de France SA
*Disclaimer: Major Players sorted in no particular order
South America Renewable Energy Market News
- September 2022: The government of Peru announced that five solar power plants totaling 600 MW of capacity will come into operation in 2023. These utility-scale projects include the 100 MW Continua Chachani, the 300 MW Continua Misti, the 60 MW Continua Pichu Plants in the Arequipa region, the 123 MW Clemessolar park in the Moquegua region, and the 20 MW Milagros Solar park in the Loreto region.
- April 2022: 16 Chilean energy projects involving a combined investment of USD 923 million were either submitted for environmental evaluation or accepted for processing. The 420 MW solar PV park Sol de Caone (Sphere Energy unit ItahueEnergy), the 236 MWp PV park Don Daro (Ebco Energa), and the 79 MWp solar farm Inca de VarasI (GPG) are among these projects.
South America Renewable Energy Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Renewable Energy Mix, 2019
- 4.3 Installed Capacity and Forecast in GW, till 2027
- 4.4 Recent Trends and Developments
- 4.5 Government Policies and Regulations
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4.6 Market Dynamics
- 4.6.1 Drivers
- 4.6.2 Restraints
- 4.7 Supply Chain Analysis
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4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Consumers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitute Products and Services
- 4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Hydro
- 5.1.2 Solar
- 5.1.3 Bioenergy
- 5.1.4 Wind
- 5.1.5 Other Types
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5.2 Geography
- 5.2.1 Brazil
- 5.2.2 Chile
- 5.2.3 Argentina
- 5.2.4 Rest of South America
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Enel Green Power S.p.A.
- 6.3.2 Iberdrola S.A.
- 6.3.3 Aes gener sa
- 6.3.4 Vestas Wind Systems A/S
- 6.3.5 Electricite de France SA
- 6.3.6 Atlas Renewable Energy
- 6.3.7 ABO Wind AG
- 6.3.8 Invenergy LLC
- 6.3.9 Mainstream Renewable Power Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablitySouth America Renewable Energy Industry Segmentation
Renewable energy is energy that comes from a source that doesn't run out when it's used, like solar or wind power.
The South American renewable energy market is segmented by type and geography. By type, the market is segmented into hydro, solar, bioenergy, wind, and others. The report also covers the market size and forecasts for the South American renewable energy market across the major countries. For each segment, the market sizing and forecasts have been done based on installed capacity (GW).
| Type | Hydro |
| Solar | |
| Bioenergy | |
| Wind | |
| Other Types | |
| Geography | Brazil |
| Chile | |
| Argentina | |
| Rest of South America |
South America Renewable Energy Market Research FAQs
What is the current South America Renewable Energy Market size?
The South America Renewable Energy Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)
Who are the key players in South America Renewable Energy Market?
Enel Green Power S.p.A. , Iberdrola S.A. , Aes gener sa , Vestas Wind Systems A/S and Electricite de France SA are the major companies operating in the South America Renewable Energy Market.
What years does this South America Renewable Energy Market cover?
The report covers the South America Renewable Energy Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the South America Renewable Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South America Renewable Energy Industry Report
Statistics for the 2024 South America Renewable Energy market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Renewable Energy analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
