The year 2025 promises to be another significant milestone for the energy transition in Latin America. The region will continue to expand its solar and wind power capacity, with new developments in energy storage, and will see local production of EVs (electric vehicles) become a reality.
Furthermore, Brazil, Mexico and Argentina stand out as protagonists in changes in the energy sector, with new investments, regulations and innovative projects.
A BNEF (BloombergNEF) identified the 10 main trends that will shape the future of energy in Latin America in 2025. Among the highlights is Brazil, which will host COP 30, a crucial event for advancing the climate agenda and the global energy transition.
The country is also leading the transformation in energy storage, with a dedicated auction for the technology expected to spur significant investment.
Here are 10 trends to watch in the region:
1 – Local manufacturing of electric vehicles in Latin America: The electric car sector is beginning to gain strength, with two new factories planned for Brazil, driven by Chinese automakers.
2 – Green hydrogen on a large scale: the region’s first major green hydrogen project reaches final investment decision, marking an important milestone for decarbonization.
3 – Expanding wind and solar energy: the region will see a strong addition of capacity in solar and wind energy, with 26 GW expected by 2025.
4 – Investments in the lithium, oil and gas sector in Argentina: Argentina opens its doors to significant investments in renewable energy, oil, gas and lithium, essential for the energy transition.
5 – Data centers and green industries in Brazil: the growing demand for clean energy solutions drives energy purchase agreements in Brazil, with an emphasis on data centers.
6 – Energy auctions in Brazil with a focus on batteries: Brazil is set to hold five energy auctions this year, with batteries emerging as a key technology for storing renewable energy.
7 – Biofuels and biomethane in Brazil: Brazil moves forward with regulatory mandates for sustainable fuels, including biofuels and biomethane, for the aviation and transportation sector.
8 – Carbon market in Brazil: the launch of the new regulated carbon market in Brazil will foster emissions trading, with major implications for the low-carbon economy.
9 – COP 30 in Brazil: Brazil, as host of COP 30, will have the opportunity to position itself as a leader in the global energy transition and in defining climate policies.
10 – Mexico’s energy plan for renewable energy: Mexico presents a new plan to revitalize its renewable energy, with a focus on clean recovery and sustainable investments.
Furthermore, Brazil is expected to hold five electricity auctions in 2025, with a focus on the growth of renewable energy and storage technologies. The electric vehicle industry will also see new investment, with factories planned for local EV production, reinforcing the region’s commitment to sustainability.
With an expected 26 GW of wind and solar capacity additions by 2025, Latin America is firmly on the path to energy transition. The region will also be in tune with new opportunities for investment and technological innovation, consolidating its strategic role in the global renewable energy market.
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