Energy storage in Latin America is undergoing an unprecedented shift in scale. What began as a technology applied to small industrial projects behind the meter is evolving into utility-scale developments capable of transforming the operation of national electrical systems.
During his participation in Future Energy Summit (FES) Mexico, Gonzalo Feito , director of the Andean, Caribbean and Mexico region of Sungrow , described this evolution based on the company's experience in the region.
“ Our initial expertise was here in the country, where we have supplied 60 MWh through various small projects for the behind-the-meter industry. We went from 5 MWh projects here in Mexico to a 640 MWh project in Chile. This forced us to learn very quickly ,” Feito stated.
The transition is not solely due to technological improvements. Behind this growth lie new operational needs in Latin American electrical systems, particularly those related to the massive integration of renewable energy.
Currently, Sungrow has 11.5 GW of signed storage projects in Latin America , of which more than 4 GW are already operational , a sign of the speed with which the market is beginning to consolidate.
Beyond Chile and Mexico, the company observes that energy storage is beginning to expand under different models in Latin America. While Argentina is promoting large-scale stand-alone projects, markets like Guatemala and the Dominican Republic are advancing with hybrid solutions that incorporate batteries from the initial design of renewable energy projects—a trend that anticipates the growing integration of generation and storage in the region.
Chile marked the turning point
“ The real boom in utility storage in Latin America comes under a curtailment need that existed in Chile with many transmission challenges ,” he explained.
The combination of rapid solar expansion and limitations in transport infrastructure forced the search for solutions capable of absorbing surplus generation and shifting energy towards peak demand times.
“ The only way to alleviate these problems was through the short-term implementation of storage systems ,” he added.
The scale of the Chilean market reflects the extent to which energy storage has ceased to be a complementary technology and has become critical infrastructure. In the last few months alone, more than 3 GWh of new BESS projects have entered the environmental permitting process , solidifying the country's position as the leading energy storage laboratory in Latin America.
This is further compounded by an increasingly sophisticated regulatory framework. Recently, Chile advanced new provisions that allow for the recognition and remuneration of energy stored in smaller-scale renewable projects, a move that seeks to accelerate the integration of batteries in different segments of the electricity system.
Mexico is preparing for a new stage
Although the initial boom occurred in Chile, various industry players observe that Mexico could become one of the next drivers of storage in the region. The difference compared to previous years is that concrete signs of demand are now beginning to emerge.
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Sungrow maintains a solid track record in the Mexican photovoltaic sector. According to Feito, the company has supplied approximately 1,200 MW of solar projects since 2019 , remaining active even during the market's slower years. However, the executive acknowledges that the next stage of growth will be increasingly linked to energy storage, a segment that is gaining prominence as new tenders, regulations, and battery integration requirements evolve.
On one hand, there is a specific call for proposals for energy storage projects. In addition, the Federal Electricity Commission (CFE) recently launched a mixed tender, awarding approximately 7,400 MW of capacity and establishing a minimum storage component equivalent to 30% of the installed capacity as a requirement.
At the same time, the new schemes for private renewable generation also incorporate similar battery integration requirements, consolidating a trend that until recently was exceptional in the Mexican market.
Meanwhile, Mexico recently made progress on a regulatory package that begins to define the role of energy storage within the national electricity system. Key changes include the recognition of battery storage and energy efficiency systems (BSES) as an independent element within the grid, the definition of criteria for their interconnection, and the incorporation of guidelines for their operational participation alongside renewable energy generation plants.
This set of measures seeks to provide greater certainty to investors and developers at a time when the country is trying to accelerate integration
“ We see without a doubt that the market is very strong, very interested and very serious ,” Feito said.
As the scale of projects increases, so do the criteria for selecting suppliers. According to the executive, storage now represents a much more significant portion of the total investment in renewable energy projects.
“ What’s being done now is the right thing to do. Solar parks with a certain percentage of storage are being installed ,” he emphasized. However, he cautioned that the focus can no longer be limited to price or technical specifications.
“ The first filter a company has to pass is bankability. This company is here, it is solvent, it is bankable, it is financeable, ” he noted.
This reflection aligns with an idea that Feito himself has previously defended when describing Sungrow as a manufacturer that seeks to compete in the premium segment of the market, relying on both technological innovation and financial capacity and local support.
According to Feito, the next phase of the Latin American storage market will not be defined solely by technology.
The differentiating factor will be the ability to guarantee performance for decades.
“ With regard to BESS, everything that could be offered in terms of the Long-term Service Agreement for up to 25 years is the most important and key point for being competitive in BESS projects today ,” he concluded.
In that regard, Sungrow has more than 10 GWh signed in projects under Long-Term Service Agreement (LTSA) contracts in the region.