Latin America currently has more than 17 GW in tenders for renewables and battery storage, with levels of competition that in some cases far exceed the capacity to be allocated and key decisions between May and July 2026.
The market shows clear signs of transformation: awarded prices range from $20 to $101 USD/MWh, and storage is steadily advancing as a structural component. At the same time, new contracting schemes are emerging that redefine the role of the State, such as Mexico's mixed model.
Mexico, Guatemala, and Panama are leading the regional trend with active processes and recent awards, while Argentina and the Dominican Republic are advancing with a focus on BESS systems. Meanwhile, several markets remain watchful of regulatory decisions that will affect new investments.
Next, Energía Estratégica provides details of the processes, country by country.
Mexico: extreme competition and a new participation scheme
Mexico is positioned as the most dynamic market in the region, with levels of competition that far exceed expectations, both in terms of accelerating permits and developing mixed projects with the Federal Electricity Commission (CFE).
In the first case, the government has already awarded more than 3.3 GW along with 1.2 GW of storage capacity out of the nearly 6 GW offered. This paved the way for a second call for bids to expedite the permitting process , to be launched very soon, and another specific call for stand-alone BESS ( for the first time, it will have a separate development process from the generation plants).
While the mixed model with CFE registered unprecedented interest, with 222 initiatives for almost 38 GW (mostly solar) equivalent to 580% above what is available (7500 MW), for a model with 54% state participation and 46% private, with contracts of up to 25 years and the guaranteed purchase of 70% of the energy generated.
The timeline is progressing with tight deadlines: awarding on May 25 and signing of contracts on June 8 , with prices estimated by the industry between 35 and 70 USD/MWh .
Guatemala: expansion with a strong presence of hybrids
Guatemala presents one of the highest values in the analysis, with 1505 MW allocated at an average of USD 101.09/MWh in the Generation Expansion Project (PEG-5) tender. However, the process marks a turning point due to the penetration of clean energy generation.
Because? Of the 1505 MW awarded in 57 projects, 1102 MW correspond to renewable energy technologies (73% of the total), with 713 MW of solar with batteries standing out, which shows the progress of hybrid solutions among the almost 3.7 GW offered.
Panama: scheduling and “unthinkable” prices
Panama maintains a schedule of consecutive tenders, where it has already obtained competitive prices and high green participation. In the ETESA 01/2025 tender, wind power was the predominant contribution with 12,453 GWh committed , followed by hydroelectric generation with 2,643.6 GWh, at an average price of USD 23.86/MWh and reaching record lows of USD 20.05/MWh , among the lowest in the region.
While the interest of the current process, the LPI ETESA 01/2026, is reflected in 71 proposals, of which 67 correspond to renewables that add up to 1441 MW of reference volume (theoretical maximum) with a clear predominance of hydroelectric, and with the presence of photovoltaic, wind and mixed offers.
The definition is scheduled for May 5 , with requirements that gradually increase to 500 MW towards the end of the contract .
In addition, the country has a set schedule for the next two years, although on a smaller scale, since a call for 200 MW for new wind and photovoltaic projects is planned for January 2027 , while 2028 will have a 50 MW BESS process.
Argentina: Continuity of storage after experience in Buenos Aires
Argentina deepens its battery strategy with the AlmaSADI tender, in line with the precedent of AlmaGBA, the first large-scale stand-alone initiative in the country where 713 MW were awarded in critical nodes of the Buenos Aires Metropolitan Area .
Building on that experience, AlmaSADI plans to develop 700 MW of BESS systems, expandable to 770 MW, focusing on strengthening reliability at strategic points in the national grid. The projects are expected to begin operations in January 2027 , with incentives for early commissioning.
The timeline establishes key milestones: May 27th, opening of technical proposals; June 24th, release of financial bids; and the contract award scheduled for July 8th . Meanwhile, the private sector anticipates high participation, potentially quadrupling the available volume.
Meanwhile, the Renewable Energy Term Market (MATER) maintains its traditional quarterly dynamic with 10 projects competing for up to 456.8 MW , the definition of which is expected on May 15 , consolidating the contracting scheme between private entities.
Dominican Republic: Adjustments in volume and high market interest
The Dominican Republic is undergoing a redefinition process in its bidding process, with possible adjustments to the capacity to be allocated. Although initially up to 605 MW were considered, the market now projects a reduction to 350 MW .
Nevertheless, interest was high, with over 1500 MWp and 1300 MWh in competition , reflecting the attractiveness of the storage segment. Decisions are expected between April 27 and May 5 , with contracts to be signed on May 22.
What's next for the country? During FES Caribe, the government announced new calls for bids for more than 800 MWh for the incorporation of battery systems and arbitrage in photovoltaic parks in operation.
In addition, the Dominican Electricity Transmission Company (ETED) submitted a statement of interest to develop 600 MW BESS for 2 hours , which represents a preliminary sizing of 1200 MWh .
Colombia: Redesigning Public Initiatives
Colombia introduced a structural change by incorporating storage and hybrid plants into its upcoming long-term auction, which attracted greater interest from the country and the return of this type of call for bids after a brief period of uncertainty.
While further details are expected, the Executive Branch has stated that it must be implemented before July 31, 2026, and the contracts include obligations from 2030 , extending to 2035.
Barbados and Honduras: progress with regulatory adjustments
Barbados is promoting a process to award 60 MW and 240 MWh in storage systems , although its development is conditioned by the electoral context.
Meanwhile, Honduras is moving forward with a tender for 1,500 MW , reformulating its system towards reverse auctions. The awarding of contracts is scheduled for August, with the signing of contracts expected in November , following institutional adjustments.
Countries awaiting government launches and updates
Some key markets remain pending regulatory definitions that will condition the start of new processes.
Brazil continues to delay its first auction of reserve capacity with storage in BESS systems, called "LRCAP Storage", after more than a year's delay since its government pre-announcement.
It was even scheduled to launch in April of this year, but there are different versions from the sector regarding the new dates, including the possibility of further extensions to July 2026 or even the beginning of 2027.
What is expected for the tender? According to estimates from the private sector, the contracting of between 1 and 2 GW of storage is considered "adequate" , and only systems with a minimum power of 30 MW , capable of delivering their maximum power for up to four hours a day , could participate.
While Paraguay has a similar case but with its first solar tender for 140 MW in the Central Chaco area; and the government predicted that it will be launched once the regulations of the law promoting renewable energies (Law No. 6977/2022) are completed.
This regulation includes fundamental technical and tariff conditions to shape the process, as well as key flexibilities to enable private investment, such as the extension of PPA contracts to 30 years (doubling the planned term of 15 years), the authorization of consortia and the transfer of projects.
By Energía Estratégica
By Emilia Lardizabal
By Ailén Pedrotti
