LATIN AMERICAN WIND POWER TRENDS

Index
i. Introduction ii. Current Status of Wind Energy in LATAM iii. Installed Capacity iv. Wind Power Trends a) Wind Farms Capacity b) Wind Turbines Size c) Market Division by WTM v. Opportunities vi. Threads vii. Conclusions

i. Introduction
Wind Energy is playing an extremely important role in Latin America (LATAM). Even though these technologies are relatively new in our region, the use of this type of energy has been quickly increased and developed in several countries. LATAM is in comparison with other regions just giving its first steps in the way to introduce Wind Power as a competitive source for its energy matrix. The growing curve for this technology is changing and the boom is just beginning.

ii. Current Status of Wind Energy in LATAM

LATAM currently counts with approximately 769 MW of wind power installed capacity, which covers less than 0.6% out of the total in the world. In this regards, there are around 60 wind farms in operation, using a total of 825 turbines to produce wind power and generate electricity for the Latin American countries. The turbines capacity average in LATAM is 930 KW, while the biggest installed turbine has a capacity of 2.1 MW.

iii. Installed Capacity

There is an interesting development regarding the installed capacity in most of the Latin American countries. Some countries, like Brazil and Mexico, increased their capacity notably. Some other who did not have any previously installed wind power, like Nicaragua and Uruguay, have now introduced some MW to their grids. The rest of the countries show a stable growth, while there are several important projects being developed, which are expected to start operating and produce thousands of MW between 2009 and 2012.

Please note the following chart showing the 2008 2009 growth in most of the LATAM countries:
Country Argentina Brazil Chile Colombia Costa Rica Cuba Ecuador Mexico Nicaragua Peru Uruguay Caribbean Total MW STARTING 2008 27 MW 247 MW 20 MW 20 MW 70 MW 7 MW 2.4 MW 88 MW 0 MW 0.7 MW 0.7 MW 53 MW 536 MW MW STARTING 2009 29 MW 344 MW 20 MW 20 MW 70 MW 12 MW 2.4 MW 155 MW 39 MW 1 MW 21 MW 53.2 MW 769 MW

Increase in installed capacity 2008 > 20% The following graph shows the installed capacity growth (years 2000 2008) and the expected growth for 2009 and 2010.
MW Installed by year Total Capacity (MW)

iv.

Wind Power Trends

a) Wind Farms Capacity Since the year 2006, the 68% of the new wind farms have an installed capacity superior to 10MW. Please note the following graph:

Since 2006

b) Wind Turbines Size Since 2006, the 30% of the new wind turbines have a capacity superior to 1MW. Please note the following graph:

Since 2006

c) Market Division by Wind Turbine Manufacturers (WTM) The Latin American market is fought by many companies who seek to become leaders of a region with a huge untapped potential for renewable energy. The following graph shows the market division by each wind turbine manufacturing company:

However, the arrival of new WTM with factories in Latin America could change this distribution in short-term.

v. Opportunities
There are several opportunities for wind power development in Latin America; some of them are: - Clean Development Mechanism (CDM) - Climate Change - Wishes for energetic independence - Better places completely available - Volatility in the costs of other energy sources. -

vi. Threads
Unfortunately, Latin America has currently several threads for wind power development as well; some of them are: Local threads: - Lack of stable and long-term regulatory frameworks. - Limited local supplies offer - Lack of transmission infrastructure in places of greatest potential - Limited financing sources - Shortage of skilled manpower - Price competition with conventional energy sources - Lack of standardization in processes Global Threads: - World Industry focused on other regions (USA & Asia) - Price competition with conventional energy sources - Financial Crisis

vii.

Conclusions

These trends are important signals of change towards better regulation and a more mature market for wind power in the region. The scenario for development of this renewable energy in Latin America is improving, and we certainly will see more and more wind farms in the med term around almost all LATAM countries.