Regional Market Outlook
On September 2025, consultancy Wood Mackenzie projected that Latin America’s energy-storage capacity will reach about 23 gigawatts by 2034, reflecting a compound annual growth rate close to 8%. The forecast underscores the region’s accelerating demand for grid flexibility and renewable integration, as governments and utilities confront rising electricity consumption and the challenge of decarbonizing power systems.
Leaders and Key Drivers
Chile is expected to lead the regional market, supported by regulatory frameworks that reward storage deployment and by its aggressive push to integrate solar and wind into the national grid. Other countries, including Brazil and Mexico, are expected to follow with large-scale projects tied to both renewable expansion and grid-reliability concerns. Utility-scale batteries will represent the bulk of installations, although distributed systems for commercial and industrial users are also gaining traction.
Implications for Policy and Investment
The projected growth signals that Latin America is becoming an increasingly attractive destination for storage technology suppliers and investors. For governments, scaling to 23 GW will require clear policy incentives, stable regulatory regimes, and strong financing mechanisms. For the private sector, the opportunity lies in developing business models that link storage not only to renewable generation but also to ancillary services like frequency regulation. The trajectory highlights a central truth: without large-scale energy storage, Latin America’s renewable boom risks hitting integration bottlenecks.