Is hydropower a cornerstone of South America's energy infrastructure?

Providing 45% of electricity supply in South America, hydropower stands “as a cornerstone of the region’s energy infrastructure”, the International Hydropower Association reports in its 2024 World Hydropower Outlook.

Is hydropower a threat to South America's Future?

Hydropower remains a cornerstone of South America’s energy mix, providing 45% of the continent’s electricity in 2023. Yet, as the International Hydropower Association's 2024 report highlights, ageing infrastructure, climate change impacts, and declining foreign investment threaten its future.

Which countries are focusing on hydropower development in South America?

Currently only utilising about 20% of its estimated hydropower potential, to help support further development, Argentina has implemented several policies and incentives including feed-in tariffs and PPAs specially targeting small hydro schemes up to 30MW. Another country in South America to watch, according to the IHA, is Bolivia.

What happened to Argentine hydropower projects in 2023?

Four Argentine hydropower projects, equating to 4380MW or 42% of the nation’s total hydropower capacity, faced contract termination in late 2023. Although the country’s Secretary of Energy granted an extension for these it raised concern about future operational continuity.

How many hydropower projects will Colombia have in 2023?

With four new hydropower projects adding 643MW to Colombia’s electricity grid in 2023, the IHA says this brings national hydropower capacity to 13,206MW, meaning that hydropower now accounts for 66% of the country’s total energy mix.

Is Argentina facing a challenge to renewing hydropower agreements?

Looking across the region, Argentina, along with an increasing number of other countries in South America, is facing up to the challenge of renewing hydropower agreements that are set to expire in the next five years.