Latin America is experiencing rapid growth in wind energy development, with installed capacity exceeding 44.7 GW in 2022. Industry forecasts indicate significant further expansion over the coming decade, with a Wood Mackenzie report predicting South American wind capacity will reach 83 GW by 2034 at an annual growth rate of 6.5 percent. The Global Wind Energy Council has projected that Latin America could more than double its onshore wind capacity by 2035, surpassing 120 GW, while also establishing its first offshore wind installations.
Brazil and Mexico are spearheading the region’s wind energy transition. Brazil currently operates approximately 35 GW of commercial onshore wind capacity, ranking it fifth globally, with roughly 90 percent of turbines concentrated in the northeastern region where consistent winds support year-round generation. The Statkraft Group operates the Ventos de Santa Eugênia Wind Complex in Bahia, comprising 14 wind farms with 91 turbines generating 5.7 MW each, and is developing a hybrid renewable project that adds 162 MW of solar capacity to the site. Mexico currently has 76 operational wind farms across 16 states, generating over 8.1 GW of capacity through more than 3,000 turbines that power approximately 12.1 million households. Investment in Mexican wind energy is projected to reach between $4 and $5 billion by 2030, potentially creating 10,000 jobs in the sector.
Grid infrastructure limitations present a significant obstacle to achieving projected growth targets. Transmission constraints in several countries require substantial infrastructure investment to accommodate new renewable energy projects. Power oversupply following recent renewables expansion in Brazil and Chile, combined with competition from solar development and permitting bottlenecks, is expected to slow near-term growth, though other regional markets may attract increased investor attention as regulatory barriers ease.
Argentina represents another emerging player in the region’s wind expansion, with current capacity reaching nearly 4.6 GW. The International Finance Corporation has announced plans to finance the Olavarria Wind Farm and associated transmission infrastructure, representing a $275 million investment that will establish 29 Vestas turbines with combined capacity of 185.6 MW. This project marks Argentina’s first renewable energy initiative incorporating privately financed transmission infrastructure integrated into the national grid system. Government policy support in Mexico and Argentina, including strategic renewable energy targets and investment incentive programs, is expected to sustain private sector participation and accelerate the region’s transition toward greater energy diversification and decarbonization.
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