REM: Latin America offshore wind: 34 GW of installed capacity by 2050

Driven by the growth of off-grid green hydrogen projects, Latin America will see a sharp increase in offshore wind projects, with capacity reaching 34 GW by 2050, according to new analysis from Wood Mackenzie.

This will correspond to a 15.4% compound annual growth rate (CAGR) starting from 2032, when the first projects are expected to come online in the region. Leading the way will be Brazil and Colombia, said the analysis firm.

“We have seen significant regulatory movement in support of offshore wind developments, with Brazil and Colombia providing official roadmaps and guidelines for future activity,” said Kárys Prado, research analyst, power & renewables with Wood Mackenzie.

“Both countries have an increasing number of planned projects, and this year’s announced pipeline growth in Latin America already represents a 34% share of global new project announcements, as of Q3 2022,” she said.

The value for offshore wind capacity will be in supporting green hydrogen projects that look to play an important role in domestic energy use and exports, said Wood Mackenzie.

According to the analysis, Brazil will capture close to 6% of the world’s total green hydrogen supply as far as 2050, with the market achieving scale after 2030. However, only 20% of the green hydrogen installations in the country will be grid-connected.

“The majority of these projects will be off-grid and part of it will be supported by offshore wind, alongside other renewables,” said Prado.