Wood Mackenzie Raises Latin America Battery Forecast to 34 GW

Wood Mackenzie projected in its Latin America Energy Storage Outlook 2026 report that cumulative energy storage capacity in Latin America will grow from 2.5 GW in 2025 to 34 GW in 2035, a 13.6-fold increase, according to pv magazine.

The projection represents a substantial revision from the September 2025 edition, when the consultancy projected 23 GW by 2034 with a compound annual growth rate of 8%. Wood Mackenzie attributes the acceleration to grid constraints, increased renewable generation curtailment, and tenders, according to Renewables Now. "Latin America is no longer a frontier market for energy storage, it is an active market," said Pamela Morales, an analyst at the firm, as quoted by pv magazine. The figure signals where capital is flowing in the region: storage is becoming a prerequisite for integrating new renewable capacity and relieving grid congestion.

In Mexico, the strategic project solicitation set a July benchmark of 935 MW of standalone storage systems, all with three-hour duration, and Wood Mackenzie estimates that joint development schemes with the Comisión Federal de Electricidad (CFE) will add more than 3 GW awarded through 2030. Brazil will hold its first two capacity reserve auctions for large-scale batteries on December 2 and 4, with 15-year contracts, supply starting August 1, 2028, and a minimum of 30 MW and four hours of duration. Argentina awarded 1,413.5 MW in standalone storage tenders in just over a year: AlmaGBA awarded 713 MW and AlmaSADI 700.5 MW. The main regional obstacle remains the lack of bankable revenue models, according to the consultancy.

The next milestone is Brazil's December 2 and 4 auctions, the first specifically for large-scale batteries. According to Wood Mackenzie, countries with bankable remuneration mechanisms will be better positioned to convert their announced pipeline into operational projects.

This article was written with artificial intelligence assistance based on verified sources and reviewed by a human editor before publication.