Chile leads Latin America in energy storage capacity

This is an automated translation of the original release published in Spanish.

PRESS RELEASE from OLADE
August 2025

Energy storage is emerging as a strategic tool to guarantee grid stability, optimize existing electrical infrastructure, ensure a reliable supply, and accelerate the transition to a cleaner and more sustainable energy matrix in Latin America and the Caribbean.

This is detailed in the technical note "Energy Storage in Latin America and the Caribbean (LAC) – Current Status, Challenges, and Strategic Recommendations," prepared by the Latin American Energy Organization (OLADE).

It is estimated that the region will have an installed storage capacity of 2.5 GW by June 2025, including various types of operational projects. Chile leads the way with a total of 1,005 MW.

The countries that follow Chile in capacity are Mexico and Brazil, and Honduras, which recently awarded a 75 MW/300 MWh system in 2025.

“Despite the vast abundance of renewable resources in LAC, such as solar, wind, and hydropower, the large-scale integration of these intermittent sources presents the challenge of generation variability,” the report highlights.

As of May 30, 2025, OLADE reports, five storage systems are being tested in the region. These systems encompass technologies such as lithium-ion batteries, hydraulic pumping, and thermal storage. These systems allow energy to be stored during periods of low demand and released when consumption increases or generation decreases. This is essential to offset the intermittency of sources such as the sun and wind, whose production depends on climatic and time-related factors.

Technically, energy storage provides significant benefits, including stabilizing the power grid by reducing peak demand, optimizing infrastructure by delaying the need for new investments in generation or transmission, and strengthening energy security by acting as a vital backup in the event of emergencies or power outages.

“At the social level, this technology offers the possibility of bringing electricity to rural and island communities where extending traditional grids is costly or unfeasible, improving quality of life and fostering economic development,” explains Andrés Rebolledo, Secretary General of OLADE.

Barriers to overcome

Despite these achievements, significant barriers to the widespread adoption of energy storage remain. The main challenges include regulatory gaps that prevent these technologies from fully participating in the electricity market, a lack of economic incentives that limit their profitability, and limited access to financing due to the high cost of capital and associated risks. Furthermore, a shortage of specialized human capital hampers the installation, operation, and maintenance of these solutions.

“Despite this, the region has exceptional conditions,” says Rebolledo, “to boost this industry, including an abundance of renewable resources, adaptable hydroelectric infrastructure, and vast reserves of critical minerals such as lithium and copper.”

For successful deployment, the OLADE report underscores the importance of key strategies. These include defining clear regulatory frameworks, providing fiscal and financial incentives, and encouraging investment in research and development.

The modernization of electrical grids, the development of human talent, and public-private partnerships are also considered essential to ensuring that energy storage becomes a fundamental pillar of the regional energy transition.

INSTALLED STORAGE CAPACITY ALC (June 2025)
	COUNTRY	BESS (MW)	HYDRO (MW)
1	Argentina	17.50	974
2	Barbados	5.00
5	Brazil	171.25	20
6	Chili	1,005.00
7	Colombia	8.90
8	Costa Rica	9.50
9	Cuba	10.00
11	El Salvador	64.00
14	Guyana	23.32
15	Haiti	18.00
18	Mexico	192.00
19	Nicaragua	0.20
20	Panama	0.37
22	Peru	26.50
24	Surinam	9.00
26	Uruguay	0.03
	TOTAL 2025	1,560.57	994

The full report can be downloaded at https://www.olade.org/wp-content/uploads/2025/07/Nota-Tecnica_El-Almacenamiento-Jul17_REV.pdf