South America’s cumulative onshore wind capacity will double to 79 GW in the next 10 years as developers install 40 GW of new capacity by 2033, according to Wood Mackenzie’s latest South America onshore wind power outlook.
2023 was a record year with 5.9 GW of onshore wind additions in South America, helped by a rush in Brazil to secure expiring wheeling fee subsidies, stated the report. Despite limited power demand visibility, Brazil maintains its lead as the largest market in the region. The country alone will contribute 54% of the total regional growth, adding 21.5 GW by 2033. This will be followed by Chile (6.2 GW) and Argentina (4.5 GW), with all three countries expected to leverage Commercial and Industrial (C&I) power purchase agreements (PPAs) to underpin wind development.
According to the report, limited transmission infrastructure will remain a challenge for onshore wind in the region, facing fierce competition with cheap solar photovoltaic (PV) which benefits from dispersed locations to overcome essential grid upgrades still pending completion.
