Press Release

Microgrid Market in Latin America is Poised to Upscale Due to the High Growth Rate of Renewable Energy

The Latin America Microgrid Market is projected to grow at a CAGR of 8.69% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report owing to the vast presence of the non-conventional sources of energy in Latin American countries such as Chile, Brazil, etc. This richness combined with the increasing incorporation of renewable sources with microgrids to facilitate efficient & undisrupted power supply to different sectors such as communities, healthcare, education, industrial, and others, is supporting the development of the microgrid market in the region. In addition, the emergence of advanced technologies such as IoT & AI-based smart grids & energy storage systems are reinforcing the development of microgrid infrastructure in Latin America.

Moreover, the support provided by microgrids in case of extreme weather events leading to power outages due to faults & disruption in the main electricity grid is elevating the adoption of microgrids as a backup power source. The large presence of isolated & remote areas due to the presence of mountains, forests, and river basins mandates the establishment of an alternate power source, as extending the main grid connection is an expensive & difficult affair in such areas.

Traditionally, governments have been fulfilling this demand with the usage of diesel generators. However, fuel shortages created by complications in diesel logistics & high rates of carbon emissions are restricting the utilization of this method. Thus, governments are increasingly shifting towards the establishment of microgrids to provide reliable power in these regions.

Additionally, the presence of high carbon-emitting industries such as mining & transportation and the growing emphasis of these sectors towards sustainability & environmental friendliness would mount the adoption of renewable energy-based microgrids in the upcoming years, further states the research report, “Latin America Microgrid Market Analysis, 2023.”

Latin America Microgrid Market Segmentation Analysis

Off-Grid to Push the Demand for Microgrid Infrastructure

Based on the connectivity, the market is further bifurcated into On-grid & Off-grid. Among these, Off-grid is registering increasing demand due to the high usage of renewable energy resources, such as solar, wind, etc., for powering microgrids that are not connected to the main grid coupled with the high richness of Latin American countries in these resources.

The Latin America Microgrid Market is projected to grow at a CAGR of 8.69% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report owing to the vast presence of the non-conventional sources of energy in Latin American countries such as Chile, Brazil, etc. This richness combined with the increasing incorporation of renewable sources with microgrids to facilitate efficient & undisrupted power supply to different sectors such as communities, healthcare, education, industrial, and others, is supporting the development of the microgrid market in the region. In addition, the emergence of advanced technologies such as IoT & AI-based smart grids & energy storage systems are reinforcing the development of microgrid infrastructure in Latin America.

Moreover, the support provided by microgrids in case of extreme weather events leading to power outages due to faults & disruption in the main electricity grid is elevating the adoption of microgrids as a backup power source. The large presence of isolated & remote areas due to the presence of mountains, forests, and river basins mandates the establishment of an alternate power source, as extending the main grid connection is an expensive & difficult affair in such areas.

Traditionally, governments have been fulfilling this demand with the usage of diesel generators. However, fuel shortages created by complications in diesel logistics & high rates of carbon emissions are restricting the utilization of this method. Thus, governments are increasingly shifting towards the establishment of microgrids to provide reliable power in these regions.

Additionally, the presence of high carbon-emitting industries such as mining & transportation and the growing emphasis of these sectors towards sustainability & environmental friendliness would mount the adoption of renewable energy-based microgrids in the upcoming years, further states the research report, “Latin America Microgrid Market Analysis, 2023.”

Latin America Microgrid Market Segmentation Analysis

Off-Grid to Push the Demand for Microgrid Infrastructure

Based on the connectivity, the market is further bifurcated into On-grid & Off-grid. Among these, Off-grid is registering increasing demand due to the high usage of renewable energy resources, such as solar, wind, etc., for powering microgrids that are not connected to the main grid coupled with the high richness of Latin American countries in these resources.