South America |
Top ten countries in South America by installed hydropower capacity (2025 World Hydropower Outlook)
1. Brazil
2. Venezuela 3. Colombia 4. Argentina 5. Paraguay
– 109,982MW – 18,366MW – 13,218MW – 11,137MW – 8810MW
6. Chile 7. Peru
8. Ecuador 9. Uruguay 10. Bolivia
– 7566MW – 5515MW – 5419MW – 1538MW – 759MW
seasonal and climatic variations. For example, a recent 35% reduction in generation at Piedra del Águila was driven by a sharp 55% decrease in the flow of the Collón Curá River, a tributary of the Limay. The authors’ first proposal doubles the installed capacity by adding solar photovoltaic power equivalent to the hydroelectric capacity. This increases energy production to 23,707GWh with an investment of $1.925 billion. The second proposal aims for a higher capacity factor by doubling the PV capacity and adding a 4-hour battery storage system, resulting in 92% capacity factor, increasing energy production to 31,899 GWh, and requiring an investment of $4.431 billion. This proposal aims to meet the demand for an artificial intelligence data centre. The authors say their proposal is scalable and could
Above: The Salto Grande Hydroelectric Complex was South America’s first binational hydroelectric project developed between two countries (Argentina and Uruguay). Located on the Uruguay River, it is sited upstream from the cities of Concordia in Argentina and Salto in Uruguay. Project began operations in 1979 and it provides an average of 850 GWh of energy per year. In 2024, Uruguay’s total electricity production climbed to a record 14.4TWh, with hydro accounting for over 50% of this. Credit:
reisegraf.ch/Shutterstock.com
be replicated in other Andean basins in Argentina, where sites share key characteristics such as abundant solar resources, rivers with irregular and limited summer flows, operational electrical systems, and low-cost land availability. Potential also lies in the reservoirs of the Mendoza province (Los Reyunos, El Tigre, Agua del Toro, Nihuil I, II, III, and Potrerillos), San Juan (Ullum, Caracoles, Punta Negra, and La Olla), Salta (Cabra Corral), amongst others. Indeed, the model could also be replicated in other Latin American countries, many of which have hydroelectric plants at the foothills of the Andes in locations with significant solar resources.
Investment in Argentina In December 2025, the International Finance
Corporation (IFC) announced a US$300m financing package for acquisition of shares in Argentina’s 1440MW Piedra del Águila hydropower plant, as part of the privatisation process of the Limay River hydropower plants. This strategic investment in Central Puerto SA,
Average Annual Production [GWh]
Alicurá Piedra del Águila Pichi Picún Leufú El Chocón
Arroyito Total
2,360 5,600 1,050 3,100 720 12,830
an Argentinian electricity generation company, will help increase the reliability and flexibility of the national power system, enable greater integration of renewable energy, and enhance the country’s energy competitiveness. The financing also includes the installation of the 150MW Nuevo Puerto battery energy storage system - the largest utility-scale energy storage contract awarded to date in Argentina. This project will optimise power system operations by helping smooth demand curves and reduce system risks, particularly during summer and winter peak periods in the Greater Buenos Aires Area. “This financing represents a strong endorsement of Central Puerto’s long-term strategy and our commitment to the development of Argentina’s power system. It will allow us to consolidate critical assets and incorporate innovative solutions, strengthening grid reliability and supporting the integration of renewable energy,” says Fernando Bonnet, CEO of Central Puerto.
Sustainable standards As 2025 drew to a close, Colombia’s 275kW
Electropalmor Hydropower Project in Magdalena, Colombia, was certified under the Hydropower Sustainability Standard (HSS) in recognition of its achievement in meeting internationally recognised environmental, social and governance practices. The world’s first small-scale, community-led
hydropower initiative assessed under the HSS, it provides reliable, low-cost electricity to the town of Palmor while operating with minimal environmental impact. Electricity from the plant supports coffee processing and other local enterprises, while reducing reliance on firewood. The assessment report for the project which is run by local energy cooperative Electropalmor ESP, shows the project delivers substantial social benefits, maintains organisational resilience and safeguards the Cherua River watershed. “Electropalmor shows how a small, community-led
hydropower project can have a big impact on people’s everyday lives,” says Joao Costa, Executive Director of the Hydropower Sustainability Alliance. Adding that the certification process is empowering community members to take ownership of their cooperative, Costa said this example shows the HSS can help improve even the smallest projects, and he hopes it will become an inspiration for other small – and larger projects - around the world.
Achieving HSS certification is not only a milestone for the community, Sol Viviana Zapata Alfonso, Executive
Generation of hydroelectric plants on the Limay River Hydroelectric Plant
Installed Capacity [MW] Capacity Factor (CF) 1,000 1,400 250 1,200 120 3,970 25% 45% 48% 29%
68% 37%
14 | April 2026 |
www.waterpowermagazine.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45
