Unlocking Latin America's solar energy potential

Texas-based Recurrent Energy has secured power purchase agreements for solar projects totaling almost 4GW in Latin America and the Caribbean. Gustavo Vajda, the company's LatAm general manager, tells BNamericas why the region is key to the company's growth plans. This is the first of a two-part interview.

BNamericas: What makes Latin America and the Caribbean an attractive prospect for investment in solar power and storage projects?

Vajda: Several factors make [the region] an attractive prospect for Recurrent Energy's solar and storage investments. Abundant natural resources and surging clean energy demand create a compelling market. Renewable energy empowers nations with energy sovereignty, fostering independence. It's a win-win: environmental benefits through reduced carbon emissions and fossil fuel dependence, coupled with strategic advantages. 

While the storage market is nascent, it's poised for rapid growth alongside renewable energy. Recurrent Energy's experience allows us to leverage our expertise and navigate local markets effectively, positioning us to provide the solar and storage solutions that our local customers are requesting. 

BNamericas: What are the major challenges/obstacles that the region faces in its effort to achieve its energy transition goals?

Vajda: While Latin America and the Caribbean offer exciting opportunities in solar and storage, there are still challenges to overcome: grid limitations leading to increased curtailments, a higher cost of financing and political and regulatory uncertainties are some examples. Despite these challenges, our experience and established presence in the region position the company to navigate these hurdles and capitalize on the substantial opportunities. 

BNamericas: Could you tell us about some of the major projects that Recurrent Energy has in its Latin America and Caribbean portfolio?

Vajda: As a global leader in solar energy with a footprint across all continents, Recurrent Energy has developed 10GW of operating utility-scale solar projects and has 27GW of solar capacity under development. Latin America and the Caribbean are key for us. We have developed one of the region's largest portfolios, with nearly 4GW of projects contracted with PPAs, 3GW built, 5GW under development and more than 2GW of projects sold in the region. 

Currently, operational projects are up and running in Brazil, Mexico, Argentina and Colombia, while we actively develop additional projects in Chile, Peru, the Dominican Republic and Puerto Rico. This year alone, we've significantly expanded our operations in Brazil with two new projects totaling 730MW, and another 270MW development scheduled for completion by year-end. In addition, two new solar projects are set to be inaugurated in Brazil in June and a 128MW project in Mexico is slated for connection in Q3.

BNamericas: Energy storage has long been described as a key to unlocking the potential of non-conventional renewable energy. Would you agree? 

Vajda: Energy storage is the linchpin for unlocking the full potential of renewable energy. The variable nature of renewable energy can be mitigated with storage solutions. Energy storage bridges the gap between peak generation and periods of lower production, enhancing reliability and efficiency. Ultimately, effective storage reduces curtailment and optimizes the use of these clean resources.

Recurrent Energy has completed over 3GWh of storage projects globally and currently has 55GWh of battery storage under development. Our expertise spans the entire project lifecycle, from initial siting and design to permitting, construction and ongoing asset management. We are [also] actively developing standalone storage solutions highlighting our commitment to storage as a cornerstone technology for a clean energy future.