New technologies such as BESS and pumped hydro storage are emerging as solutions to address renewable variability and ensure a continuous, sustainable power supply in the region.
Installed energy storage capacity in LAC currently stands at 2.5 GW
LAC is undergoing an increasingly rapid process of adding new power generation capacity based on non-conventional renewable energy, mainly wind and solar, which allows the region to tap into its enormous energy potential, while at the same time facing challenges related to their variability (they produce electricity only when there is wind or solar radiation). In this context, energy storage emerges as an alternative that makes it possible to store energy when it is not needed, for use at times when demand requires it, thereby ensuring a continuous, efficient and sustainable supply.
The Latin American and Caribbean Energy Organization’s Technical Note X, “Energy Storage in Latin America and the Caribbean,” presents a detailed analysis of the leading storage technologies, highlighting their principles, applications, advantages, costs and level of maturity.
BESS systems are the most widespread in the region due to their modularity, high level of technological development and steadily falling prices. Pumped hydro storage follows—although more efficient, it requires particular geographic conditions and high investment costs, so its development in the region remains incipient. Emerging technologies such as thermal storage, flywheel storage and gravitational storage show strong potential but still require further development. Low-emission hydrogen and ammonia deserve a category of their own, given the high expectations surrounding their potential in the region.
The document notes that, aside from countries such as Chile, Brazil and Mexico—particularly the first, which due to its specific conditions is undergoing a very rapid process of storage adoption—the region generally faces significant limitations.
The document also examines the main challenges facing energy storage, especially in the normative and regulatory spheres, and proposes strategies to foster its development. These include: developing specific policies, incentivizing investment, strengthening research and local value chains, promoting public-private partnerships, and encouraging distributed storage and microgrids, particularly in rural and island areas.
Given the highly diverse conditions of the region’s electricity systems, the document underscores the importance of conducting studies that make it possible to precisely identify, from a technical and economic standpoint, each country’s individual storage capacity needs.
Beyond serving as technical support for renewables, energy storage should be regarded as a strategic tool that contributes to the energy transition, security of supply, and the better use of the region’s energy resources.
Check out the technical note at the following link: https://www.OLACDE.org/publicaciones/nota-tecnica-n-10-almacenamiento-de-energia-en-america-latina-y-el-caribe-estado-actual-desafios-y-recomendaciones-estrategicas/
