· 4 min read
According to the Global Wind Energy Council (GWEC), Latin America has significant potential for wind energy growth, driven by rising energy demands and a commitment to reducing reliance on fossil fuels.
By 2022 Latin America had around 44.7 GW of onshore wind energy capacity already installed, according to Statista (https://www.statista.com/topics/8153/wind-power-in-latin-america/?utm_source=chatgpt.com). While there aren't yet any offshore wind energy projects operating, several Latin American countries are interested in tapping into their offshore wind resources.
In the offshore wind space, Latin America, with its extensive coastlines and favorable wind conditions holds significant potential for harnessing this energy source.
And, four countries on South America—Brazil, Chile, Colombia and Uruguay—have the most promising wind sectors.
In the offshore wind energy space, Brazil and Colombia are leading the charge, designing and implementing auctions to harness this sustainable resource.
Brazil: Preparing for future auctions
Brazil is the largest manufacturer of wind turbines in Latin America and the 6th country in wind energy generation worldwide, according to GWEC Global Wind Reports 2023 and 2024.
Brazil is making good strides in the offshore wind energy space, leveraging its extensive coastline and favorable wind conditions.
Brazil has an enormous potential for deploying offshore wind energy technologies, estimated at 700 GW, according to the Roadmap Eólica Offshore Brasil (20200.
Currently, Brazil is awaiting the discussion and approval by Congress of Bill 576/2021, which relates to offshore energy. Adoption of this bill is a key step before the government regulates the allocation of seabed areas for offshore wind projects in the country.
In the offshore wind energy space, Brazil has huge competitive advantages in comparison to its Latin American neighbors. These advantages are no just due to the size of the Brazilian market and the potential for offshore wind but due to its impressive advancements in onshore wind energy in the last 20 years and it's relatively long history in offshore oil and gas projects. Importantly, experiences in both spaces are transferable to the offshore wind space.
As reported by GWEC, in 2023 Brazil set new records in wind energy, with 4.8 GW of newly installed capacity, over 1,000 operational wind farms, and a total exceeding 30 GW of installations.
Colombia: Pioneering regulatory framework and tender
In Colombia, the government of President Gustavo Petro has taken significant steps to promote offshore wind energy.
The regulation on seabed allocation dates back to 2020. The regulation evolved into a regulatory framework that lead to the launch of the first offshore wind energy tender in Latin America.
The tender attracted the interest of 9 companies and consortiums which on 28 Oct. 2024, submitted documents to prequalify in the process. The participating companies are from Belgium, Denmark, the UK, Spain, China and Colombia.
Colombia has traditionally relied on hydropower, which accounts for a significant portion of its energy supply. However, the impacts of climate change and phenomena like El Niño have made the country vulnerable to water scarcity, jeopardizing its energy security.
This precarious situation underscores the urgent need for alternative energy sources, such as offshore wind.
Uruguay and Chile
Uruguay and Chile are also exploring offshore wind energy opportunities.
In Sep. 2024, Uruguay’s Ministry of Industry, Energy and Mining (MIEM) authorized the state-owned energy company National Administration of Fuels, Alcohol and Portland (ANCAP) to prepare the tender for four offshore wind blocks, specifically to produce green hydrogen.
Chile on the other hand is seemingly looking to advance with an open door system.
This systems is in contrast to Colombia, Brazil, and Uruguay, which bet for competitive regulatory frameworks to advance in the offshore wind energy space.
In Aug. 2024 Chilean and UK partners announced their plan to build Chile’s first offshore wind farm. The announcement was followed by a similar one in Oct. 2024, where Chile’s Minister of Economy welcomed the application of the Norwegian company Deep Wind Offshore for an area to build two offshore wind parks: one floating and one with a fixed-bottom in the Biobío region.
Challenges on the horizon
While the promise of offshore wind in Latin America is exciting, the sector faces several challenges.
One of the primary hurdles is establishing robust regulatory and institutional frameworks that facilitate investment and project implementation. Some countries are taking their initial steps to develop roadmaps, regulations and incentives tailored to offshore wind energy, necessitating collaboration among governments, industry players, and coastal communities.
Maritime spatial planning will be also key for the emergence of this industry.
Additionally, engaging in transparent dialogue with communities and stakeholders will contribute to building trust and support for offshore wind energy initiatives.
International partnerships will play a vital role in advancing the offshore wind energy sector in Latin America.
To that end, The World Bank, through its Offshore Wind Development Program, is building capacities in different countries in the region. GWEC has a strong presence in Latin America, particularly in Brazil while Oceantic Network is also a key partner that could benefit the region.
The race for offshore wind energy in Latin America is just starting.
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