Contents

Introduction

Electric power demand moves in line with GDP growth. This is an old adage, and though we see some decoupling in advanced economies, in general in Latin America it holds true. The region is coming out of a terrible downturn, and is now returning to slow but steady growth.

The IMF expects 2% regional growth this year, after 1.7% growth last year, even considering the recession in Venezuela, where GDP is expected to shrink 15% in 2018.

This bodes well for new energy projects. In BNamericas' annual survey of experts in the electric power sector, 73% of respondents said they saw more projects being approved and designed this year than last. Power demand growth is positive in the main countries in the region and as this report demonstrates, major electric power companies, as well as smaller renewable energy companies, are committing increasing sums into their local project pipelines.

One of the drivers of investment in the region is a trend of government-sponsored auctions for new generation and transmission projects. Governments in Argentina, Brazil, Mexico, Chile and Peru have over the past 24 months contracted out billions of dollars worth of projects, and with the backing of long term PPAs. The key will be to see which of these projects will get financed, especially in countries like Argentina. Meanwhile, in other markets, such as Chile, the question is whether there is still room for new projects and participants in a saturated energy sector.

Read this report for details on company investment plans in the electric power sector in the region.

Project Risk Analytics
Tracking project performance

Portada Risk

By providing a top-down analysis of the timeliness and costs of current Latin American projects, BNamericas provides a new tool to the industry, allowing it to learn from past events and improve planning for future projects.

  • Analytics report analyzing key statistics
  • Consider the risks of changes in project schedules
  • Instant view of project status
  • Benchmark your portfolios and new projects