Latin America Renewable Energy Infrastructure Market Size, Share, Trends, and Growth Report to 2026

Market Overview The <a href="https://www.imarcgroup.com/latin-america-renewable-energy-infrastructure-market">Latin America renewable energy infrastructure market</a> was valued at USD 52.36 Billion in 2025 and is forecasted to reach USD 127.83 Billion by 2034. The market is expected to grow at a CAGR of 10.43% during the forecast period from 2026 to 2034. This growth is driven by decarbonization commitments, declining renewable technology costs, and abundant natural resources. Governments are promoting competitive energy auctions and tax incentives, bolstering investment. Key regions like Brazil, Chile, and Argentina benefit from exceptional renewable resources fostering market expansion. Study Assumption Years <ul> <li style="font-weight: 400;" aria-level="1">Base Year: 2025</li> <li style="font-weight: 400;" aria-level="1">Historical Period: 2020-2025</li> <li style="font-weight: 400;" aria-level="1">Forecast Period: 2026-2034</li> </ul> Latin America Renewable Energy Infrastructure Market Key Takeaways <ul> <li style="font-weight: 400;" aria-level="1">The market size was valued at USD 52.36 Billion in 2025.</li> <li style="font-weight: 400;" aria-level="1">The market is expected to grow at a CAGR of 10.43% from 2026 to 2034.</li> <li style="font-weight: 400;" aria-level="1">The forecast period is from 2026 to 2034.</li> <li style="font-weight: 400;" aria-level="1">Solar energy infrastructure held the largest market share of 44% in 2025, driven by declining photovoltaic costs and abundant solar resources.</li> <li style="font-weight: 400;" aria-level="1">Power generation equipment accounted for the largest component share of 37% in 2025, led by utility-scale solar and wind projects.</li> <li style="font-weight: 400;" aria-level="1">Utility-scale renewable projects represented the major application segment with a 54% share in 2025, supported by government auctions and corporate agreements.</li> <li style="font-weight: 400;" aria-level="1">Brazil dominated the market with a 38% share in 2025 due to its vast renewable resources and regulatory framework.</li> </ul> Sample Request Link: <a href="https://www.imarcgroup.com/latin-america-renewable-energy-infrastructure-market/requestsample">https://www.imarcgroup.com/latin-america-renewable-energy-infrastructure-market/requestsample</a> Market Growth Factors Supportive Government Policies and Investment Frameworks Latin American national governments' policies aid the renewable energy infrastructure. In Brazil, the renewable energy auction system enables businesses to invest with transparent bidding and revenue certainty. Chile's regulations for storage and electromobility support stand-alone storage business cases, making it a leader in the storage sector. Mexico's 2030 goal for 45% of its electricity generation to be renewable has encouraged private sector investment in storage. Declining Technology Costs and Improving Project Economics Falling prices for photovoltaic modules and wind energy have made renewables competitive with conventional generation. Brazil's solar capacity has been growing rapidly as its electricity prices have become competitive. Battery energy storage system costs decreased 45% in 2025. Lithium-ion prices are down to USD 108 for each kWh. Stationary storage prices dropped to USD 70/kWh. This change makes these applications more bankable. New markets are opening. Growing Corporate and Industrial Decarbonization Demand Corporate sustainability pledges and power purchase agreements have led to more investments into renewable infrastructure across the country. Chilean miner Codelco, along with other miners from Peru and Brazil, have signed renewable electricity contracts. Energy-intensive industries might decarbonize competitively because data centers grow in Brazil, industrial electricity tariffs exist, and renewable sources of energy occur. Market Segmentation Energy Source: <ul> <li style="font-weight: 400;" aria-level="1">Solar Energy Infrastructure: Dominates the market with a 44% share in 2025, led by Brazil’s 55 GW installed capacity and expansion in distributed generation incentivized by net metering and tax policies.</li> <li style="font-weight: 400;" aria-level="1">Wind Energy Infrastructure: Growing with record installations, including Brazil’s Dom Inocêncio Wind Complex (828 MW) and Chile’s Horizonte Wind Farm, benefiting from cost reductions and competitive contract prices.</li> <li style="font-weight: 400;" aria-level="1">Hydropower Infrastructure</li> <li style="font-weight: 400;" aria-level="1">Biomass & Waste-to-Energy</li> <li style="font-weight: 400;" aria-level="1">Geothermal Energy Infrastructure</li> </ul> Component: <ul> <li style="font-weight: 400;" aria-level="1">Power Generation Equipment: Holds 37% market share supported by demand for solar panels, wind turbines, and hydro components, with Brazil expanding solar panel production to meet domestic need.</li> <li style="font-weight: 400;" aria-level="1">Grid Infrastructure</li> <li style="font-weight: 400;" aria-level="1">Energy Storage Systems: Including battery storage and pumped hydro.</li> <li style="font-weight: 400;" aria-level="1">Smart Grid & Digital Solutions</li> </ul> Application: <ul> <li style="font-weight: 400;" aria-level="1">Utility-Scale Renewable Projects: Largest segment with 54% share in 2025, fueled by auction mechanisms, power purchase agreements, and government renewable mandates.</li> <li style="font-weight: 400;" aria-level="1">Commercial & Industrial Installations</li> <li style="font-weight: 400;" aria-level="1">Residential Renewable Energy Solutions</li> </ul> Country: <ul> <li style="font-weight: 400;" aria-level="1">Brazil: Leading with 38% market share in 2025, driven by extensive renewable resources, regulatory support, and record capacity additions.</li> <li style="font-weight: 400;" aria-level="1">Mexico</li> <li style="font-weight: 400;" aria-level="1">Argentina</li> <li style="font-weight: 400;" aria-level="1">Colombia</li> <li style="font-weight: 400;" aria-level="1">Chile</li> <li style="font-weight: 400;" aria-level="1">Peru</li> <li style="font-weight: 400;" aria-level="1">Others</li> </ul> Regional Insights Brazil is the dominant market player with a 38% share in 2025, benefiting from its status as Latin America’s largest economy and a well-established renewable energy market. The country added a record 10.9 GW of installed capacity in 2024, 91% of which was renewable. Brazil’s expanding transmission infrastructure and new sustainable fuels legislation enhance its renewable energy infrastructure growth. Recent Developments & News In November 2025, Engie Chile energized the 116 MW, 660 MWh Tocopilla Battery Energy Storage System in the Antofagasta region. This is Engie's first large-scale standalone battery storage facility in Chile, located on a former coal-fired plant site. Additionally, a major renewable energy supply agreement was announced in August 2024 between Scala Data Centers and Serena, securing 393 MW of wind power from two Bahia state facilities, highlighting data center-driven renewable demand. Key Players <ul> <li style="font-weight: 400;" aria-level="1">Casa dos Ventos</li> <li style="font-weight: 400;" aria-level="1">Vestas</li> <li style="font-weight: 400;" aria-level="1">Engie Chile</li> <li style="font-weight: 400;" aria-level="1">Scala Data Centers</li> <li style="font-weight: 400;" aria-level="1">Serena</li> <li style="font-weight: 400;" aria-level="1">Colbun SA</li> </ul> If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization. About Us IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. 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