Latin America and the Caribbean are entering a new phase for storage. Chile has the most mature regulatory ecosystem , while Argentina, Brazil, Mexico, Colombia, the Dominican Republic, and other markets are moving forward with tenders , long-term contracts, and specific regulations that are beginning to make BESS systems a profitable activity.
The regional map, however, still shows profound differences. Some countries already recognize these assets as participants in the electricity system , define capacity payments, or enable their participation in competitive bidding processes. Others barely allow batteries associated with self-consumption or maintain restrictions that prevent them from providing services to the grid.
The starting point remains low compared to future needs. The Latin American and Caribbean Energy Outlook 2025 , prepared by the Latin American and Caribbean Energy Organization (OLACDE) , estimates approximately 1.7 GW of installed battery capacity within electrical systems that together generate roughly 567 GW. The organization projects that this volume could increase to 24 GW by 2030 and 46 GW by 2035 .
This growth would require mobilizing approximately USD 24 billion by 2030 , in addition to developing economic signals capable of remunerating power, flexibility, arbitrage, ancillary services, and deferred network investments. The challenge also includes generating predictable revenue streams to finance the projects.
In its “ White Paper on Storage ,” OLACDE warned that regional progress remains in an “incipient phase” and that the absence of “clear regulatory frameworks,” “limited access to financing,” and “lack of economic incentives” persist. According to the organization, the response requires “coordinated action” and a “long-term vision.”
The picture is changing rapidly. During 2025 and 2026, various governments went from including general references to this technology in their energy plans to defining auctions, contracts, technical requirements, connection procedures, and remuneration schemes .
Chile leads the market, while Argentina, Brazil, and Mexico are accelerating growth.
Chile remains the most advanced country in Latin America due to the combination of legal recognition, operational regulation, power remuneration, and projects under construction or in operation.
Law 20.936 recognized energy storage systems as a distinct category within the electricity sector in 2016. Subsequently, Supreme Decree 70 established the framework for independent installations and the battery component of renewable power plants to access power recognition during a transitional period of ten years .
That scheme delivered an economic signal that other markets have yet to structure. In turn, Decree 1 of 2026 formally incorporated batteries into the regime for small distributed generation facilities up to 9 MW, with technical rules for connection, metering, monitoring, and operation.
Supreme Decree 32 deepened the process by regulating the centralized dispatch of BESS assets and pumping stations, introducing new injection pro rata rules and enabling the figure of generation-consumption systems for industrial complexes with their own production and backup capacity.
Regulatory maturity is reflected in the volume of projects. The OLACDE survey already identified five systems under testing in May 2025, totaling 571 MW and 2378 MWh , in addition to developments such as Oasis de Atacama and the hybridization of the Capricornio photovoltaic plant.
The organization estimates that Chile concentrates about 70% of the installed battery capacity in the region , an advantage associated with both the rules and the operational needs of a system with high solar penetration, spills and transmission congestion.
Argentina has taken a leap forward through tenders , although it still lacks a fully consolidated general market for services. The first significant tender, AlmaGBA, awarded 713 MW of BESS solutions to address constraints and strengthen reliability in the Buenos Aires Metropolitan Area.
The subsequent AlmaSADI tender received 235 bids for 8,338 MW , almost 12 times the original target. Ultimately, it awarded 700.5 MW across 20 projects , distributed among Genneia, DQD Energy, 360 Energy Solar, Aluar, and Intermepro Generación I.
The average price reached USD 8,427 per MW-month , around 33% below the USD 12,500 ceiling established in the tender specifications. The lowest bid came from Genneia's Bragado I and II projects, with 100 MW at USD 7,397 per MW-month .
The contracts include remuneration for power availability and a component for dispatched energy, providing predictability for the winning bidders. In addition, the government created the National Registry of Electrical Energy Storage Projects to consolidate participating initiatives.
The unawarded volume opened another discussion. CAMMESA is working on the Additional Reliability Reserve Service, a mechanism that would allow for semi-annual bidding rounds and channel some of the approximately 7,000 MW that were left out of AlmaSADI.
Buenos Aires also launched a provincial program and awarded an initial contract for a 25 MW and 125 MWh system, distributed across four nodes. The initiative aims to replace diesel generation used during peak demand periods and address distribution issues that were not covered by the national call for bids.
Brazil made progress on two complementary fronts: legal recognition and capacity contracting . Law 15.269 of November 2025 recognized storage as an activity independent of the electricity sector, an essential definition to prevent projects from being treated simultaneously as consumers and generators without a specific framework.
Regulatory development was delayed within the National Electric Energy Agency (ANEEL). Following requests for review and discussions about reopening the public consultation, ANEEL deliberated in June 2026 on the classification and integration of these assets into the sector.
In parallel, the Ministry of Mines and Energy published the terms and conditions for two capacity reservation auctions. One of them is specifically focused on batteries and allows BESS systems without the local content requirements stipulated for the national call for bids.
The processes will contract for power availability, not energy , through 15-year agreements with supply starting in August 2028. The projects must have at least 30 MW, a minimum efficiency of 85%, and the capacity to deliver four continuous hours per day.
Brazil also confirmed the implementation of a dual tariff and established that capacity reservation costs will be distributed among generators, without being passed directly on to residential and industrial users. This structure will be crucial for testing the bankability of the first phase of large-scale installations.
Mexico ranks among the markets with the greatest potential , following the definition of participation modalities, interconnection agreements, and requirements for BESS projects. The administrative provisions published by the National Energy Commission recognize five forms of participation and authorize the National Energy Control Center to acquire energy and power from private systems.
The new framework allows batteries to provide backup, regulation, and reliability-related services. It also assigns the risk of degradation to the developer: when available capacity falls below agreed-upon parameters, the owner must replace or upgrade the equipment.
The mixed scheme promoted by the Federal Electricity Commission produced the most significant signal. The call for bids awarded 37 projects totaling approximately 7,411 MW to 31 developers, with an estimated investment of USD 7.4 billion.
The country faces implementation challenges, however. The availability of transformers, with estimated delivery times of between 18 and 36 months, could delay projects, while developers are demanding greater clarity on taxable income and access to market services.
Colombia and the Caribbean are making progress, but Central America still has gaps.
During 2025 and 2026, Colombia developed an architecture to incorporate batteries into tenders, network assets, and long-term contracts . The regulatory process defines three modalities: systems associated with network infrastructure, resources combined with generation, and independent units.
Resolution 40178 integrated backup, generation, transmission, and distribution capacity into long-term contracting mechanisms. The call for bids included four hourly products, one of which was intended to cover the period between 5:00 p.m. and 9:00 p.m.
The main question remains remuneration. The sector warns that a contract based solely on the purchase and sale of energy may be insufficient to recover the capital invested in batteries, especially when the asset does not receive additional income from reliability, power, or ancillary services.
Colombia has therefore added rules for participation and access to auctions , but it still needs to demonstrate that the contracts generate sufficient cash flow to achieve financial closure. Added to this are transmission restrictions, demanding guarantees, and more than 5,000 MW of energy projects stalled at various administrative stages.
The Dominican Republic has emerged as one of the most dynamic markets in the Caribbean . The country has mandated that new renewable energy projects between 20 and 200 MW incorporate batteries equivalent to 50% of the contracted power, with a minimum capacity of four hours.
The EDES-LPI-01-2025 tender received bids for 1655 MWp for a demand of 600 MW, but awarded 325.69 MW. The remainder was left unawarded due to proposals exceeding the reference price.
Far from closing the process, the authorities are preparing a call for bids for the approximately 300 MW remaining and another aimed at incorporating 200 MW of BESS systems into existing solar parks . An expression of interest for 1200 MWh with private investment has also been launched.
Decree 55-26 transformed the transmission company ETED into a state-owned corporation and authorized it to develop independent facilities. This was further complemented by the first specific technical framework approved by the Superintendency of Electricity.
The country projects reaching approximately 2000 MW of BESS capacity and adding more than 800 MWh in the short term. The massive blackout caused by a failure at Punta Catalina intensified the debate on the contribution of these technologies to the resilience of the National Interconnected Electric System.
Puerto Rico has one of the highest penetrations of distributed batteries , with more than 10% of LUMA Energy users equipped with solar generation and backup systems, and more than 180,000 customers enrolled in net metering until September 2025.
The 2020 Integrated Resource Plan set a target of 1500 MW for this technology. The first phase of contracts awarded more than 435 MW equivalent of four-hour batteries , while the third phase anticipates incorporating an additional 250 MW.
The main barrier is institutional. The dispute between the Fiscal Oversight Board and the legislation protecting net metering adds uncertainty to the distributed segment, while a new Integrated Resource Plan is being discussed throughout 2026.
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Barbados entered the market group with a concrete competitive signal by launching its first auction for BESS systems for 60 MW and 240 MWh. The process requires lithium iron phosphate technology, a minimum efficiency of 85%, 95% availability, and the ability to operate in island mode.
The initiative includes support from the Inter-American Development Bank, the Global Energy Alliance for People and Planet, and a liquidity guarantee from the Central Bank to cover up to three months of payments. This structure reduces the buyer's risk and could become a model for other island systems.
Guatemala introduced these solutions through its PEG-5 tender . The process awarded 1258 MW across 57 projects, with approximately 73% corresponding to renewable technologies and a significant share of solar plants with batteries.
The average single-unit price was USD 101 per MWh , below current contracts. The scheme prioritized firm delivery in certain time slots, which favored solar solutions with storage capacity over technologies with less controllable profiles.
The next step will be PEG-6, focused on approximately 300 MW of firm power, along with PET-4 to reinforce transmission. Its development will depend on regulatory continuity, contractual updates to meet new legal obligations, and the elimination of municipal fees challenged by developers.
Honduras represents a case of physical progress with pending institutional development . The country awarded a 75 MW and 300 MWh battery storage facility in Amarateca, the largest battery project in Central America, with an investment of approximately USD 50.2 million.
The 1500 MW tender, which requires at least 20% BESS capacity per project, was postponed until 2027. Its success was conditioned on a structural reform that ends the single buyer of the National Electric Energy Company and creates an independent operator.
In addition to the regulatory delays, the state-owned company also owes money to power generators. For the private sector, the lack of payments represents a risk comparable to the regulatory vacuum, because it directly affects confidence in the offtaker and the cost of financing.
Costa Rica is implementing a partial opening . Executive Decree 44930 enables private investment in backup, transmission, and generation solutions, and projects the addition of more than 500 MW between 2026 and 2028.
The Public Services Regulatory Authority is working on a reform of the technical planning and operation standard to integrate variable renewables and battery storage. The country is making progress, but still needs to finalize the operating and remuneration rules.
Panama recognizes energy storage within its provisions related to transmission and the wholesale market , although its latest tenders did not require batteries. The ETESA 01-25 and 01-26 tenders awarded energy at average prices of USD 23.86 and USD 33.7 per MWh, respectively.
The results showed that a tender focused solely on price can favor technologies capable of offering cheap energy without compensating for attributes such as flexibility and reliability. The CAPES solar chamber called for future tenders to explicitly value these services.
The roadmap includes four processes between 2026 and 2028 and anticipates a greater role for BESS systems by 2029. Even so, a limitation of regulatory hierarchy persists: Law 6 of 1997 restricts the scope of changes that can only be implemented through regulatory resolutions.
Paraguay has made progress in legal recognition , but has not yet opened a specific market. Law 7599 and its implementing decree enabled long-term renewable energy contracts and expressly included projects with or without batteries.
The first application is the tender for the 140 MW Loma Plata solar plant. However, the country has not yet launched calls for bids for independent units nor defined a general scheme to remunerate grid services.
Peru combines advanced technical regulations with still incomplete economic signals . The amendment to Law 28.832, in effect since January 1, 2026, expanded the provision of Complementary Services and created the figure of Complementary Service Providers as new agents in the system.
The change allows various participants, in addition to generating companies, to offer primary frequency regulation, voltage control, black start, and other ancillary services. The reform enables the participation of BESS systems , although independent developments still face uncertainties regarding permits, connection, and associated charges.
Law 32.249, passed in 2025, also incorporated a framework that allows for energy and power arbitrage using batteries. However, pending regulations limit its commercial application and postpone the definition of specific revenue streams for these assets.
The Peruvian market already has at least ten operational projects and more than 70 MW equivalent , driven by Kallpa, Engie, Enel, Minera Poderosa, and GR Cortarrama. A large part of these installations fulfill the Primary Frequency Regulation requirement for power plants larger than 10 MW, with the exception of wind, solar, and tidal power plants.
The most emblematic project is Engie's Chilca-BESS , installed at the Chilca Uno Thermoelectric Power Plant and considered the largest battery system in the country. This experience allowed for the incorporation of rapid response capacity within an existing power plant, but it did not resolve the conditions applicable to stand-alone units.
Technical Procedure PR-20 of the Economic Operation Committee of the National Interconnected System established another key incentive. Starting January 1, 2028 , power plants will be required to contribute synthetic inertia to the National Interconnected Electric System.
The standard requires systems to connect in less than 20 milliseconds, deliver firm power in less than 50 milliseconds, and complete their response in under 100 milliseconds. These parameters position batteries as one of the most technically viable alternatives for solar and wind power installations coming online from 2028 onwards.
The market is already beginning to translate this demand into investment decisions. Suppliers like Canadian Solar and Comcore Technology report that developers have moved from requesting only photovoltaic modules to quoting integrated solutions with batteries. The expected timeline places 2026 as the year for quotations, 2027 as the construction phase, and 2028 as the start of operations under PR-20.
The average price of a BESS solution in Peru ranges between USD 180 and USD 300 per kWh , depending on the technology, scale and characteristics of the project.
The 2026 PR-21 update further emphasized the importance of these assets within Ancillary Services and transmission infrastructure. The new procedure expands operational opportunities, although their economic potential remains limited by the lack of specific remuneration.
Peru does not yet recognize the power output of BESS systems nor does it have a defined arbitrage payment mechanism, as is the case in more developed markets. It has also not launched a dedicated tender for long-term battery contracts.
The natural gas supply disruption recorded in April 2026 exposed this weakness. Payments between generators within the COES system exceeded 510 million soles , compared to a historical average of around 101 million, reopening the discussion about the contribution these resources could make during periods of stress.
The report prepared after the crisis documented the participation of the Chilca and Kallpa systems associated with existing power plants. Despite this response, the sector questioned why the regulations for Law 32.249 remained pending more than a year after its approval.
Peru thus occupies an intermediate position within the regional landscape . It has operational projects and technical procedures in place that will drive new investments from 2028 onwards, but it still needs to finalize commercial regulations for remunerating arbitrage, power, and ancillary services.
The markets that are still delayed
El Salvador remains among the countries with the strictest operational restrictions . Batteries associated with solar plants can only function while photovoltaic generation is present, preventing the transfer of energy to nighttime hours and limiting the provision of auxiliary services.
The Transactions Unit and the General Directorate of Energy are working on a regulatory update, but there is no set timeline. The delay is significant because the country has 734 MW of solar power capacity , equivalent to 23.7% of its total installed capacity.
Uruguay maintains regulations focused on self-consumption . Decree 27/020 allows for energy storage systems without injection into the grid and is currently under review to permit occasional deliveries, provided they do not exceed the user's consumption.
The 2024-2043 Expansion Plan includes batteries in its future scenarios, even using 120 MW modules with a ten-hour lifespan. However, there is no tender, services market, or utility-scale remuneration mechanism in place.
Ecuador exhibits the most marked lag among the major markets analyzed . Regulation ARCONEL-005/24 focuses on distributed generation and self-supply, but does not define a specific framework for large-scale BESS systems.
The institutional priority following the electricity crisis was focused on addressing the generation deficit and blackouts. Consequently, these assets still lack independent classification, connection rules, service revenues, and procurement processes.
The regional map shows three regulatory speeds . Chile already combines recognition, operation, remuneration, and scale. Argentina, Brazil, Mexico, Colombia, and the Dominican Republic are moving forward through tenders and regulations that will have to prove their capacity to mobilize financing.
Peru, Guatemala, Barbados, Puerto Rico, Honduras, Costa Rica, Panama, and Paraguay show concrete signs, although these depend on complementary regulations, buyer solvency, bankable contracts, or more precise commercial rules. In the Peruvian case, technical development contrasts with the lack of power recognition and specific arbitrage payments.
El Salvador, Uruguay, and Ecuador continue to lag behind due to limitations in scope, absence of economic mechanisms, or lack of regulation for large-scale projects.
The expansion from 1.7 GW to 24 GW in 2030 will depend both on the reduction in battery prices and on the ability of each market to define who can develop the assets, what services they provide, how their availability is measured, who remunerates them and for how long.
These definitions will make the difference between countries that incorporate these solutions as strategic infrastructure and those that continue to treat them as an experimental complement to renewable generation.