Brazil and Mexico are the two countries which will lead Latin America in the growth of wind power, with 31.6 and 6.6 GW respectively, to be installed by 2025. Chile will also add significant wind power, boosted by the country's renewable portfolio standard, according to the "Latin America Wind Power Markets and Strategies: 2010-2025."
Brazil Positioned to Lead
Brazil's market size, expected to represent 69 percent of Latin America’s total installed capacity in 2025, positions the country to lead the region and to become an important supply hub. Demand and local-content requirements are encouraging original equipment manufacturers to invest primarily in Brazil-based manufacturing of turbines 1.5 MW and larger.
"With Latin America's large potential and limited installed capacity, developers are racing to secure market share in a single country, while those companies with more mature pipelines have initiated regional expansion," says IHS analyst Vincent Gautier, one of the study's authors.(Ibid) "This trend is dominated by international players, while local firms presently find their home markets large enough." (IHS Emerging Energy Research)
According to the study, beyond turbine assembly, an even larger opportunity is opening up to develop Brazil's wind turbine component supply chain, with annual demand for more than 300 turbine units expected by 2011. Total investment in Latin America wind turbine markets will scale from just under $1 billion in 2009 to more than $2.2 billion by 2015.
Wind Power Development Dominated by European Wind Power Suppliers
European wind players are poised to dominate wind power development and ownership in Latin America in the near term, leveraging their experience and financial resources. Iberdrola Renovables was the first player to develop a significant presence regionally, with operational projects in Brazil and Mexico.
Other international developers, such as Acciona Energia, are now following suit. IMPSA Wind is currently the only Latin American developer with regional ambition, but local industrial players and independent power producers are moving to challenge these foreign entrants by the latter half of the decade, according to the study.
Mexico has the potential to challenge Brazil's market leadership, but reduced political support suggests the overall market will stagnate until 2020, according to the study. Chile will peak at 280 MW installed in 2024, before dropping 55 percent, when it achieves its renewable portfolio standard target of 10 percent.
Meanwhile, global wind power, which reached over 38,000 MW in 2009 is expected to grow to 200,000 MW this year, as Asian countries, China in particular, invest heavily in wind power projects.
Duane Sharp - I am a retired professional engineer (electronics), with over 40 years of writing experience in technology topics, with a focus on the IT ...
