Latin America’s solar storage market is undergoing a historic transformation. According to the latest Wood Mackenzie report, the region is no longer a “frontier market” — it is now an “active market.” Energy storage capacity is forecast to surge from 2.5 GW in 2025 to 34 GW by 2035, a nearly 13-fold increase.
This growth is driven by renewable curtailment, grid congestion, dedicated auctions, and supportive policies. According to IRENA, Latin America reached 389 GW of renewable capacity by end-2025, with solar accounting for 26.5%. Wood Mackenzie projects South America will add 160 GW of PV capacity by 2034, with Brazil and Chile representing 78% of installations.
II. Three Key Markets Driving Latin America’s Solar Storage Revolution
1. Brazil: The Giant Scaling Up with Storage
Brazil leads regional solar deployment with over 60 GW of cumulative capacity, expected to reach 100 GW by 2029. The country enacted Law 15.269/2025 — its first comprehensive storage framework — and will hold its first large-scale battery auctions in December 2026. Contracts run 15 years, requiring ≥30 MW power and 4-hour duration. However, financing remains constrained until clear revenue models emerge, making solar+storage hybridization increasingly critical.
2. Chile: The Storage Testing Ground
Chile operates Latin America’s largest BESS projects, with 12.18 GW of solar PV (61% of renewables). The country is set to surpass 6 GW of BESS by end-2026, with 1.6 GW operational, 6.8 GW under construction, and 27 GW in development. High curtailment drives long-duration storage investment. However, price cannibalization in northern Chile poses a new risk: growing battery capacity may reduce arbitrage revenues.
3. Mexico: Policy-Driven Inflection Point
Mexico published its first national storage regulatory framework (SAEE) in June 2026, establishing five participation modes and mandating grid-forming capability. A strategic project call targets 935 MW of standalone storage. New mechanisms with CFE could award over 3 GW by 2030. The Prosener 2025-30 plan projects 6.4–9.55 GW of new capacity, 96% from solar and wind, though grid access delays remain a challenge.
III. Balancing Mandates and Incentives
Wood Mackenzie’s Pamela Morales stresses that Latin America needs balance between mandates and market incentives to drive growth. Countries with clear, bankable remuneration mechanisms will convert project pipelines into operational assets. As Global Solar Council CEO Sonia Dunlop stated: “A prosperous future for Latin America is not just possible with solar – it’s powered by it.”
The next decade offers a golden opportunity, but success hinges on well-designed policies, transmission investment and robust revenue models to attract private capital.
