Central & South America | Still playing a vital role
Dealing with drought, modernising existing facilities, and new construction are just some of the issues facing the hydro sector across Central and South America
DESPITE WHAT IT CALLS only ‘a modest’ total capacity addition of 306MW in 2024, the International Hydropower Association (IHA) says hydropower is still a vital component of the South American energy mix. Currently providing approximately 45% of South American electricity demand, thanks to the region’s natural resources such as the Andes mountains and the Amazon basin, there is still vast potential for generation and only 30% of its hydropower potential is being utilised. In its 2025 World Hydropower Outlook, the IHA outlined some of the challenges facing regional development, such as maintaining grid stability as renewable energy deployment accelerates. In response to this, South America is playing a pioneering role in developing hybrid systems which combine hydro and other renewables to maximise sustainability and efficiency. A leading example of this approach, the IHA says, is the deployment of PV arrays on hydro reservoir surfaces. However, there are also what the association
terms as being ‘reputational challenges’ in the region. Explaining that the industry is responding to these with a strong focus on demonstrating sustainability in such an ecologically sensitive environment, IHA gives the example of Brazil’s 198MW Mascarenhas plant which was recently awarded gold certification under its Hydropower Sustainability Standard, following on from Brazil’s 3.75GW Jirau plant which also achieved gold certification in 2023. In addition, Colombia’s 2.45GW Ituango and 19.9MW Chorreritas projects were awarded silver certification. Pumped storage remains largely untapped in Latin America, but a 2024 IADB report highlights its potential to boost renewable integration as ageing hydro plants modernise. The two-stage study identifies 179 possible sites across 11 countries and lays out plans for a pilot project in Pisagua, Tarapacá, Chile, providing 640MW with 12 hours of storage. The pilot uses two
4.5Mm3
reservoirs, four 160MW Francis turbines, and two 220kV lines. The US$570 million project would be constructed over 48 months at a cost of US$32/MWh.
Argentina Severe droughts since 2024 have critically impaired Argentinian hydropower generation. It declined by 15% compared to 2023, with a further 34% drop in January 2025 due to extremely low river inflows. And although this led to power cuts and higher electricity costs, the IHA says the Argentinian hydropower sector is undergoing major growth.
Modernising ageing facilities has been a priority but several large-scale projects are also nearing completion with new developments planned. Projects include the 1310MW Santa Cruz hydroelectric plant, slated for completion by 2026, and the 950MW Condor Cli Dam set for commissioning by 2027. Still in permitting stages, the 871MW Chihuido project is expected online by 2029. As a whole though, Argentina has still only harnessed 20% of its hydropower potential. The Inter-American Development Bank recently identified 23 potential pumped storage projects with average installed capacities of 414.5MW.
Bolivia
Described as ‘growing significantly’, Bolivia’s hydropower sector continues to move forward with major projects. The 3000MW Rio Madera hydropower project should start on a feasibility study and environmental licensing soon, with possible commissioning by 2031. In addition, the 1.16TWh Ivirizu complex, and the first stage of the 203MW Miguillas hydroelectric plant, are both expected to be finalised this year.
Above: Zongo dam at an altitude of 4700m in Bolivia. The country’s hydropower sector continues to grow significantly
Brazil A severe dry spell in late 2024 reduced Brazil’s hydropower output to a three-year low, with hydropower falling to a 50% share of the energy mix during September. Anticipation of low water flows in the future has been a limiting factor in the development of new sites, according to the IHA, and in 2024 only 56MW from 11 new hydropower projects was added to the country’s total generating capacity. With Brazilian installed hydropower capacity now standing at 110GW, an additional 1.3GW is licensed or under construction. There are currently 32 advanced-stage projects totalling 442MW and
16 | August 2025 |
www.waterpowermagazine.com
Above: Aerial view of Tucurui Dam and Hydropower Plant in Brazil. Droughts reduced the country’s hydropower output to a three-year low in 2024
60 licensed projects awaiting construction. Czech energy company ENERGO-PRO also
recently agreed to purchase the 350MW Baixo Iguaçu hydropower plant in the state of Paraná. Commissioned in 2019, the plant plays a critical role in regulating the flow of the Iguaçu Falls, one of the world’s largest waterfall systems. It produces clean, renewable energy sufficient to power one million Brazilians, covering 8% of Paraná state’s annual consumption. The power plant was built between 2014 and 2019 with a total investment of €500 million. Its concession runs until 2049. Meanwhile, ENGIE Brasil Energia has signed
an agreement to acquire the 393MW Santo Antônio do Jari Hydropower Plant, located in Amapá and Pará, and the 219MW Cachoeira Caldeirão Hydropower Plant in Amapá.
Chile Having realised approximately 53% of its estimated 16GW hydropower potential, Chile is described as exhibiting significant potential for small and micro run-of-river projects and pumped storage. Although the country’s installed
Top six countries in Central and South America to add hydropower in 2024 (IHA 2025)
1. 2. 3. 4.
Ecuador
El Salvador Brazil Chile
Colombia
227MW 67MW 66MW 49MW
5. Dominican Republic 18MW 6.
12MW
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