In Energy
Arthur Deakin

Arthur Deakin
Director of Energy Practice
AMI

The opportunities for battery energy storage systems are growing rapidly in Latin America. Below are some key details for those who want to understand and succeed in the BESS market.

In 2010, the IEA projected that the world would reach its 2019 solar penetration only in 2035. Analysts underestimated solar adoption by 16 years. The reality is that storage, a fundamental component of the energy transition, is likely to expand at an even faster pace than the current estimates.1 For example, McKinsey predicts that utility-scale battery storage solutions (BESS), which already account for the largest share of new annual capacity, are expected to grow at 29% per year for the rest of this decade. The reality is that it could be closer to 50% per annum.

While the U.S. was expected to have nearly 60 GWh of installed battery capacity by the end of 2023, AMI estimates that Latin America had less than 1 GWH of operational BESS projects—a 60x difference. This large gap will be bridged at different speeds based on each country’s specific regulations. To provide a view of what is to come, AMI breaks down the status and opportunities of BESS in main Latin American markets.


With countries struggling to build transmission lines, due to expensive costs and lengthy permitting processes, stand-alone storage will provide much-needed grid stability and a profitable solution to reduce high levels of curtailment across the region. Companies that understand the regulatory processes and revenue opportunities in each specific country will be the ones that succeed in this upcoming boom.

AMI helps battery storage manufacturers, integrators, and operators understand what their competitors are doing (how are they pricing their products, what are their sales strategies), define the current and future market size and evaluate the most promising opportunities within the BESS space in Latin America. AMI has over 20 years’ of experience in Latin America’s energy sector and a proven track record of helping both multinationals and investors understand the changing market dynamics to ensure a successful low-carbon strategy in the region. Contact our Energy Practice at adeakin@americasmi.com.

2024 Battery Storage Landscape in Latin America and the Caribbean_Cover

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2024 Battery Storage Landscape 

Latin America and the Caribbean regulatory challenges, potential projects, and trends in storage capacity.

Sources:

  1. McKinsey & Co. August 2023. “Enabling renewable energy with battery energy storage systems.” ↩︎
  2. Review Energy, September 2023, “República Dominicana necesita almacenamiento en AC para evitar la intermitencia en la red.” ↩︎
  3. BN Americas, January 2024. “Almacenamiento energético aparece en radar regulatorio de Perú” ↩︎
  4. BN Americas, January 2024. “Panamá incluye almacenamiento de energía en agenda reguladora” ↩︎
  5. Energia Estrategica, September 2023. “Uruguay actualizará su normativa de almacenamiento de energía para autoconsumo” ↩︎

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