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The Latin America and the Caribbean (LAC) region is entering a decisive moment in its clean energy journey, with the potential to emerge as a major global leader in wind power. The commitment made at COP28 to triple global renewable energy capacity by 2030 has added urgency to this transition. For LAC, meeting this target means nearly doubling its current wind energy installed capacity just to remain aligned with existing climate goals. Several studies indicate strong potential for expansion, suggesting that the region could more than double its onshore wind capacity and cross 120 GW by 2035. Offshore wind, which is still in its early phase, is also expected to register its first gigawatts within this decade.
The region’s wind supply chain is uneven, marked by concentrated manufacturing of finished wind components such as nacelles and blades in Brazil and Mexico. While this concentration offers domestic opportunities, it also poses the risk of bottlenecks as demand increases. A major weakness is the limited capacity to manufacture key components like gearboxes and power converters, forcing the region to depend on imports. This reliance exposes LAC to global supply fluctuations and increases vulnerability during high-demand periods. In the case of onshore wind, the manufacturing capacity for towers and large castings is comparatively strong and is expected to meet regional needs through 2035. But the local production of nacelles, generators, and blades is already facing overcapacity, a situation that will reverse into shortages around 2029 as demand begins to grow much faster.
For offshore wind, the challenges are more significant. Unlike onshore wind, there is currently no established industrial base for assembling nacelles, producing major components, or manufacturing balance of plant equipment. The only exception is a limited offshore tower production capacity in Mexico. To support future offshore growth, the region will need substantial upfront investment in specialized manufacturing and supporting infrastructure. Projected offshore demand starting in 2031 cannot be met without building this industrial foundation.
The rapid expansion of wind energy in LAC is slowed by eight major challenges. Political instability and inconsistent market signals make long-term investment difficult for suppliers. Transmission infrastructure, especially in countries like Brazil and Mexico, is already strained and has resulted in wind curtailment, where available clean energy goes unused due to inadequate grid capacity. Import dependence for essential components adds another layer of risk, increasing exposure to global price volatility and supply disruptions. The offshore segment remains dependent on the progress of the onshore sector, which still needs resolution of structural issues. Ports and logistics systems are not prepared to handle extremely large offshore components such as 100-meter blades or heavy foundations. The region lacks specialized installation vessels and the shipbuilding capacity required for offshore projects. A shortage of skilled workers and weak innovation ecosystems further restricts supply chain competitiveness. Additionally, over-reliance on Asian suppliers for cost-effective components threatens local industrial growth and self-sufficiency.
To address these challenges, the report recommends six key actions rooted in the concept of collective effort. The first recommendation is to create regulatory certainty by establishing clear energy policies and predictable multi-year auction schedules. This stability is necessary to encourage long-term investments across the supply chain. Strengthening transmission networks and upgrading port infrastructure is equally important, especially for enabling offshore wind. Another recommendation is to accelerate local manufacturing through flexible, performance-based industrial policies that support both supply chain resilience and new economic opportunities. Financial tools and tax incentives are also needed to lower capital costs and attract significant private investment. The region must also promote technology transfer and link industrial strategies to its natural resource strengths, such as copper production in Chile and rare earth elements in Brazil, to build greater technological sovereignty.
Finally, enhancing regional cooperation can help harmonize technical standards, share infrastructure, and position LAC as a unified clean energy bloc capable of competing globally. Through coordinated actions and stronger regional integration, LAC has the potential to build a reliable and competitive wind energy supply chain that delivers economic growth, job creation, and long-term energy security.
