Outdated transmission grids hinder renewable integration in Latin America
Experts estimate the region needs at least USD 30 billion in transmission lines by 2030. Brazil, Mexico and Argentina are the most affected by the infrastructure bottleneck.
One of the most underestimated bottlenecks of Latin America's energy transition lies in transmission infrastructure. While the region advances in renewable capacity, the lines needed to evacuate that energy lag behind. Latin America needs at least USD 30 billion in new transmission lines by 2030. Brazil, Mexico and Argentina are the most affected. In Brazil, wind and solar farms in the Northeast wait up to 18 months for grid connection. In Mexico, wind generation concentrated in Tehuantepec collides with limited line capacity. In Argentina, Patagonia's wind potential remains underutilized. The problem is not just investment volume but planning. Expansion plans must be drawn up in an integrated manner across countries, leveraging cross-border exchange potential. ALAGER advocates creating a regional working group on integrated transmission planning.
ALAGER tracks this topic through its technical working groups and produces exclusive analysis for members. To access full reports, become a member.