According to market research firm NPD Solarbuzz, the Latin America and Caribbean (LAC) region has around 1GW of PV projects currently under construction with a pipeline of projects totalling over 22GW at all phases of development.
NPD Solarbuzz said that it expected approximately 9GW of projects to be installed over the next five years.
“Solar PV is now starting to emerge as a preferred energy technology for Latin American and Caribbean countries,” said Michael Barker, senior analyst at NPD Solarbuzz. “The region has high electricity prices and it also benefits from strong solar irradiation, which makes it a good candidate for solar PV deployment. As a result, experienced global solar PV developers are seeing the strong solar PV growth potential in the region.”
The LAC region has changed significantly in recent years having been predominantly small-scale and off-grid in nature.
However, large-scale PV power plants dominate the pipeline, especially in the top three markets of Chile, Brazil and Mexico. Unlike some of the emerging markets, major PVEP’s and project developers have already built power plant projects in places like Chile, indicating that further project growth was realistic.
“Many countries across the LAC region have the potential to develop into major solar PV markets in the future,” added Barker. “While project pipelines vary by country, there is a strong contribution from early-stage developments that have yet to finalize supply deals or find end-users to purchase the generated electricity, which presents both risks and opportunities for industry players.”