What are the opportunities for battery energy storage systems in Latin America?

The opportunities for battery energy storage systems are growing rapidly in Latin America. Below are some key details for those who want to understand and succeed in the BESS market. In 2010, the IEA projected that the world would reach its 2019 solar penetration only in 2035. Analysts underestimated solar adoption by 16 years.

How much electricity does Uruguay generate?

According to 2022 data from MIEM, Uruguay generated 14,759 GWh of electricity, 13,343 GWh for internal demand and exported 1,416 GWh to Brazil and Argentina Typically, Uruguay generates a surplus of electricity due to an excess of wind-power capacity.

Why does Uruguay generate a surplus of electricity?

Typically, Uruguay generates a surplus of electricity due to an excess of wind-power capacity. The country seeks to identify additional domestic uses for excess electricity and potentially increase exports to Argentina and Brazil.

How much electricity did Uruguay export in 2022?

In 2022, exports of electricity represented $222 million which was less than 50 percent of the total amount of electricity exported in 2021. This decrease was primarily due to a severe drought which adversely affected the generation in Uruguay.

What percentage of energy is generated by biomass in Uruguay?

In 2021, biomass represented 41 percent of the total energy supply in Uruguay, while oil and its derivatives were responsible for 42 percent. Uruguay’s high percentage of biomass energy generation is a result of cellulose industry expansion where energy is generated from wood waste products.

Will Chile pay a capacity payment for energy storage projects in 2024?

Chile passed an energy storage and electromobility bill in late 2022, making stand-alone storage projects profitable for operators. However, the market is still awaiting new rules regarding a capacity payment for storage projects—expected in 2024.