The Answer Is Blowing in Brazil's Wind
Renewable energy production in Latin America has grown dramatically over the last decade. The use of green technology like wind turbines and solar arrays continues to expand, as countries like Brazil seek to improve energy security and lower carbon emissions. Given this energy revolution, the opportunity for investment in renewable energy infrastructure in Latin America is robust, according to Paulo de Meira Lins and Valentina Cumo of Darby Brazil.
The Winds of Change
Wind turbine technology thrives in Latin America
Climate concerns are driving change across Latin America, as countries embrace cleaner energy and look for more sustainable ways to increase power generation. Wind turbine technology—considered one of the cleanest sources of energy on the planet—is among those more sustainable ways.
From 2000 to 2017, global wind capacity increased from 17,000 megawatts to more than 500,000 megawatts, according to the International Renewable Energy Agency (IRENA). Latin America is at the forefront of this revolution. In fact, Brazil is the most advanced country in the region in terms of wind power utilization. As of 2017, the nation had 447 wind farms with an installed capacity of 11 gigawatts (GW)—enough to power more than 10 million homes.1
In addition, the country has committed to expand non-hydropower renewables, such as wind turbine technology, to at least 20% of total renewables by 2030. The Brazilian Energy Research Company expects more than 24 GW of wind power capacity to be added to the energy matrix by 2027.2
Investing Where the Wind Takes You
The opportunity for infrastructure investment in Latin America is robust
Significant resources in the way of capital will be needed as countries like Brazil look to build out their renewable energy infrastructure. According to Forbes magazine, 226 energy infrastructure-related investments in 2017 were financed by $61.8 billion of foreign capital, and this need for investment is expected to continue.3
The U.S. Energy Information Administration (EIA) suggests that power generation in the region will have to double by 2030 to support the growing population. The Economic Commission for Latin America and the Caribbean (ECLAC) estimates the population will rise from 625 million today, to 779 million by 2050, and it is estimated this increase will require investments greater than $700 billion.4 Renewable sources are expected to drive this expansion, particularly in Brazil, as the country reduces its dependence on large hydropower generation.