South America has a dynamic renewable energy market, and in many countries throughout across the region, scaling up the contribution of renewable energy to the future energy mix is a major policy priority. Solar and wind power generation have huge potential across the continent, but their unique characteristics require adjustments in the traditional planning processes and methodologies
South America possess abundant natural resources and positive conditions for generating renewable energy and will be a magnetic pole for renewables, attracting interest from around the world.Ambitious national and regional commitments, international agreements and rapid technologicalprogress have prompted countries to increasingly invest into renewables and power infrastructure. However, the variability of solar and wind energy presents distinct challenges to grid integration and stability
Through the long-awaited auction, which will be held on February 26, the Colombian Government intends to allocate 1.18 million MWh per year. Selected projects will be awarded a 12-year PPA.
“Our goal in these four years is to increase the installed capacity of renewables from 50 MW, which is what today a city like Ibague needs, to at least 1,500 MW, equivalent to what Cali and Medellín need together,” said the Colombian Vice Minister of Energy and Mines Diego Mesa.
The National Government's vision is to prepare Colombia for the transition to the fourth industrial revolution, by modernizing the electricity sector with cutting edge technology that contributes to energy efficiency and environmental protection.
It is on track of the set goal to supply 20% of the country’s power with renewable energy by 2025. Argentina aims to generate 12% of its energy mix from renewable energy by the end of 2019. This percentage will increase to 16% in 2021, 18% in 2023 and 20% in 2025%.
Its first renewable auction in 2016-2017 resulted in more than 2,400MW of wind power being contracted.
The implementation of the Renewable Energy Term Market (MATER) is a step forward for the country, allowing energy generators and large users to trade renewable energy.
Brazil is the third largest renewable energy generator, acording with the International Energy Agency (IEA). The country generates nearly 76% of its electricity from renewable resources.
Brazil is the eighth largest producer of wind energy. Over the years, wind projects have grown constantly, reaching 6% of the energy matrix of Brazil .There are more than 500 wind farms in operation, representing 12.77GW of installed capacity. Source: the Global Wind Energy Council (GWEC).
Solar projects are also increasing, growing in the past few year by 70% and it is estimated that by 2030 energy from solar sources will correspond to 10% of the energy matrix.
Brazil also stands out for its biofuel production. Influenced mainly by ethanol, Brazil is the second largest biofuel producer in the world. Source: Statista.
Chile can be considered a pioneer market in the grid parity trend that is currently developing in Southern Europe; it hasincreased its share of generation from renewable energy sources from 5% to 18% and has set its sights on 100% by 2040.
By 2021, the government expects to reach a 100% coverage in electrification, mainly closing the gap in rural areas, it plans to have 15% of renewables in its energy mix by 2030. It is the 5th most attractive country forrenewable energy investment in LatinAmerica.