By Abdullahi Lukman
Atlas Renewable Energy plans to invest about US$2bn in Latin America over the next three to four years, with investments expected to focus mainly on Chile and Mexico as Brazil faces ongoing power curtailment challenges, according to the company’s CEO Carlos Barrera.
Barrera said demand for electricity across the region continues to rise, driven by industrial sectors such as mining and emerging demand from the technology industry, particularly data centers.
He noted that renewable energy has become increasingly cost-efficient over the past decade, contributing to rapid growth in renewable power projects across Latin America.
Last year, more than 80% of newly installed power capacity in the region came from renewable sources.
Despite this growth, Barrera said curtailment remains a major challenge for renewable energy producers, especially in Brazil. Curtailment occurs when power plants are forced to reduce or stop generation even when electricity prices remain high.
According to Barrera, this situation creates financial difficulties for companies that must still purchase expensive electricity to meet obligations under power purchase agreements.
Brazil recently approved legislation to compensate generators affected by grid-related curtailment between 2023 and 2025.
However, Barrera said the measure addresses only part of the problem, as most curtailment in the country results from excess power supply rather than grid limitations.
He added that regulatory reforms and the expansion of energy storage systems are essential to address the issue. In markets such as Chile and Mexico, electricity prices typically fall to near zero when supply exceeds demand, while battery storage systems allow excess solar power generated during the day to be used at night.
Chile has become a leading example of successful battery investment policies in the region. Barrera said the country’s regulatory framework has attracted billions of dollars in energy storage projects.
Atlas Renewable Energy already operates a battery project in Chile and is commissioning another, while three additional projects remain under development.
Looking ahead, the company plans to concentrate its regional investments in Chile, Brazil and Mexico.
However, Barrera said Atlas will delay new projects in Brazil until the curtailment problem is resolved. Current investments are therefore expected to be concentrated in Chile and Mexico, where industrial demand for electricity continues to grow.
Mexico, he noted, is experiencing renewed interest from private and international investors following policy changes by the new administration.
Years of limited investment have created significant demand for new power generation in sectors such as mining, steel and metals.
Barrera added that Brazil still holds strong long-term potential, particularly as the largest market in the region and an emerging hub for data centers.
Atlas is currently completing its Draco solar plant there but has not approved new investments in the country for more than a year.
Overall, the company expects to invest around US$2bn in Latin America over the next three to four years, although Barrera said the final figure could change depending on market conditions and investment opportunities.
