Latin America's renewable energy growth may hit limits

Significance

As variable generation capacity rises, the need to facilitate its end use increases, creating new demands for investment in electrical transmission and consumption and offering opportunities for firms providing system integration solutions such as battery storage.

Impacts

• Updated regulatory and legal frameworks may help to improve the business climate and attract more investment.
• The region will make greater calls for international cooperation and assistance from developed economies.
• Local opposition to transmission line building and other infrastructure projects will present challenges.