Latin America’s renewable energy sector is on track to reach 239 gigawatts of installed wind and solar power capacity by 2040. This fact demonstrates the enormous potential of the sector as an investment opportunity. In this article we take a look at opportunities in the renewable energy market.
Around the world, support for old, polluting industries has faded, while clean, green energy has gained popularity. Fossil fuels are in rapid decline and the conventional energy sector consistently underperforms the S&P 500 index. Recent research shows that renewables will account for 77% of new power generation investments through 2050.
Latin America, the region with the world’s most abundant solar and wind resources, is poised to play a key role in the energy transition, and several trends point to the fact that now is the right time to invest in the sector.
Clean energy market matures
Latin America’s advantages when it comes to attracting investment in renewable energy have not gone unnoticed. In recent years we have seen the confidence of international developers and financiers translate into projects across the continent.
These players were the pioneers. They have since been followed by large companies such as CMI, a company driven by the Bosch Gutierréz family in Guatemala, which have begun to shift the focus of their investments to renewables by issuing green bonds.
Now, as companies begin to sign power purchase agreements, the market has become increasingly dynamic, particularly in Brazil, Chile and Mexico. There is still plenty of room for growth in other markets, such as Colombia, and even in more established markets there are opportunities as new technologies, from energy storage solutions to bifacial PV modules, are employed.
There are some trends across the region that suggest renewable energy is a sound investment. With the right partners and carefully chosen projects, investors, financiers and companies can reap benefits from the sector for many years to come. The time to do so is now.
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