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Most countries in Latin America and the Caribbean have limited storage capacity—except for Chile. This front-runner is charting the path for other countries to follow, and currently we expect Brazil, the Dominican Republic, and Puerto Rico to take important strides to power up Battery Energy Storage Systems (BESS) in Latin America in the mid-term.

In our latest energy webinar, “The Future of BESS in Latin America,” we explained the current state of battery storage systems in the region and the strong potential they could have in the coming years. The webinar featured the esteemed presence of Daniel Chacón, Sales and Market Director for LatAm at Fluence, and Markus Vlasits, President of the Advisory Board at ABSAE. It was moderated by Arthur Deakin, our Energy Practice Director.

Key BESS Markets in LAC: Chile, Dominican Republic, Brazil and Puerto Rico

The first part of the webinar focused on the challenges and opportunities for BESS in Latin America and the Caribbean.

These include:

  • Most countries in Latin America lack significant storage capacity. Chile is the leader with 338 MW operational.
  • Operational projects in LAC represent 3% of the US FTM market, which is expected to double in 2024.
  • Chile has a 33 GWh pipeline, 25X the size of its 1.3 GWh in operational assets.
  • Dominican Republic and Puerto Rico show promise on BESS, but the remuneration for storage assets are unclear.
  • Investment in BESS in the region is hampered by lack of regulation, high-interest rates, and interconnection delays.
  • Energy arbitrage in Chile will account for >85% of revenues by 2025.
  • Brazil still lacks a broader regulatory framework for BESS, reflected by projects being BTM to serve C & I and off-grid customers.

Insights from Experts about BESS in Latin America

The second part of the webinar was an extensive panel discussion and Q&A with our guest experts. Here are some insights:

Daniel Chacón, Sales and market director for LatAm at Fluence

“Historically, Chile has seen a significant introduction of renewables, and so far, the country has been at the forefront of developing projects related to renewable sources. There is a lot of potential for solar generation in the north of the country, one of the areas in the world with the highest solar radiation. This potential also supports the business case for deploying more storage assets in the country. Batteries and their storage projects are the perfect match for this type of market in Chile.”

Markus Vlasits, President of the advisory board at ABSAE

“With respect to energy storage, Brazil is clearly a nascent market. We conducted a survey last year and mapped something around 100-120 megawatts of BESS with an aggregated capacity of 300 MWh. This is incredibly low when you consider that Brazil is the third-largest electricity market in the Americas, with an annual consumption of around 500 TWh and a rapidly growing renewable sector. We can discuss a little bit why we are lagging behind. If we look at the installed space today, we see a lot of small-scale energy storage being used for rural electrification. The Amazon region curiously constitutes about two-thirds of our currently installed capacity.”

Click here to request the PDF of the presentation and scroll below to view the video of the webinar, which features these and more insightful responses from the panel to audience questions that will further deepen your understanding of the future of BESS in Latin America.

Next Steps

Schedule a call with Arthur Deakin, AMI’s Energy Practice Director, to explore how our market intelligence into BESS can help uncover direct opportunities for your company to take advantage of this growing technology market. We can help with a variety of key services, including:

  • Market sizing
  • Opportunity benchmarking
  • Competitive landscape and intelligence on key competitors

And much more.

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