Regional energy storage would reach 34 GW by 2035

Cumulative energy storage capacity in Latin America could grow from 2.5 GW in 2025 to 34 GW in 2035, according to a Wood Mackenzie projection. The increase would represent a 13.6-fold expansion and a compound annual growth rate close to 30%.

Argentina appears among the markets that have begun to accelerate development of this technology. Through public bids, the country has already awarded 1,413.5 MW in projects, primarily aimed at relieving constraints at critical grid nodes and providing power and reserves.

Regional progress responds to the need to support renewable energy growth, reduce generation spillage, and address transmission network limitations. The creation of new contracting mechanisms and the launch of specific tenders also play a role.

The current estimate represents an upward revision compared to the report published by the consulting firm in September 2025, when it had forecast 23 GW for Latin America in 2034 and annual growth of 8%.

Chile maintains regional leadership, with large battery systems in operation and expansion favored by high renewable penetration and spillage in the country's north. However, increasing storage supply could narrow price spreads available for energy arbitrage and impact expected revenues.

Mexico could award more than 3 GW through 2030 via new schemes for strategic projects and joint developments with the Federal Electricity Commission. Brazil, meanwhile, plans to hold its first capacity reserve auctions specifically for large battery systems in December 2026.

The main challenge for the region will be ensuring predictable revenues that allow financing of these initiatives. The lack of clear rules for remuneration of ancillary services, capacity, and arbitrage, combined with permitting delays and financing access restrictions, could delay construction of already-announced projects.

With information from Mejor Energía.