South America to add 40 GW of new onshore wind by 2033 - WoodMac

Onshore wind developers in South America will install 40 GW of new capacity over the next 10 years, doubling the region’s cumulative onshore wind installations to 79 GW, according to Wood Mackenzie’s latest South America onshore wind power outlook.

South America added a record 5.9 GW of onshore wind in 2023, driven by a rush in Brazil to take hold of expiring wheeling fee subsidies, the analyst firm said this week.

Brazil will remain the largest market in the region, seen to install 21.5 GW by 2033. It will be followed by Chile and Argentina, which are forecast to add 6.2 GW and 4.5 GW, respectively. Wind development in the three countries is expected to be supported by commercial and industrial power purchase agreements (PPAs).

“As the recent policy-driven renewables overbuild slows in the top two markets, Brazil and Chile, South America will face limited growth in the medium term,” said analyst Karys Prado.

“Going forward, market recovery will rely on grid upgrades that help overcome solar competition, as well as power demand boosts, such as green hydrogen opportunities,” Prado added.

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