Latin American PV market held back by constraints in Brazil and Mexico - GTM

Facebook
Twitter
LinkedIn
Reddit
Email
Mexico has been stalled by electricity market reform, but the future is promising. Credit: Hive Energy

The Latin American solar market is expected to double to 2.3GW in 2016, up from 1.3GW last year, but it remains in its early stages having been held back by key markets in Brazil and Mexico, according to the latest figures from analyst firm GTM Research.

Main growth in 2015 came from utility-scale development in Chile, which installed 521MW, and Central America deploying 495MW, of which 395MW came from Honduras, said GTM’s Latin America PV Playbook ‘2015 year-in-review and Q1 2016 market update’.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

However, while Mexico and Brazil are considered major markets with huge long-term potential, both markets were reported as “relatively muted” last year with Mexico installing 100MW and Brazil just 36MW.

Major changes under Mexico’s Energy Transition Law, which was only passed in December last year hindered short-term demand, however, GTM noted that the new law should pave the way for a successful PV market in the long-run. Mexico is expected to install around 362MW this year, but it will be a 2GW market each year by 2020.

Brazil has a strong 2.4GW project pipeline from government tenders, however, its declining economic climate has prevented most of this from being installed. It is expected to install just 400-500MW this year while developers start moving towards self-finance.

Peru and Uruguay were cited as strengthening markets.

Current Latin American project figures are:

  • Number – 1,125
  • Announced – 27,780MW
  • Contracted – 6,990MW
  • Under construction – 4,803MW

The Latin American region now has the fifth largest demand and the third fastest growth rate out to 2020 globally. The utility-scale segment is projected to be the primary source of demand in the region out to 2020.

Latin American PV projections up to 2050. Credit: GTM.

The region's market is also expected to grow five-fold by 2020.

Cumulative demand 2015-2020:

  • Brazil – 7GW
  • Chile – 4GW
  • Mexico – 5GW
  • Central America – 2GW
  • The Caribbean – 0.7GW
  • The Rest of South America – 2GW
2 September 2025
Mexico City, Mexico
Intersolar Mexico is the leading platform for technology trends and B2B networking in Mexico's solar market. It focuses on photovoltaics, solar heating and cooling technologies, and energy storage. Together with the co-located events The GREEN Expo® and Aquatech Mexico, it has solidified its position as the largest gathering of professionals in the renewable energy and cleantech industry in Mexico since the debut in 2019. In 2024, the events hosted more than 400 exhibitors as well as 10,000 visitors and 12,000 industry professionals (total attendance). The sixth edition of Intersolar Mexico will take place from September 2 to 4, 2025 at the Citibanamex Center, in Mexico City.

Read Next

June 24, 2025
US solar tracker manufacturer GameChange Solar has signed a deal to supply trackers to 715MWp worth of solar PV capacity across South America.
June 4, 2025
Independent power producer (IPP) Grenergy has acquired 1GW (298 units) of inverters from Spanish manufacturer Ingeteam for its 2GW/11GWh Oasis de Atacama solar-plus-storage project in Chile. 
April 22, 2025
Solar PV developer Atlas Renewable Energy has secured US$510 million in financing for a solar-plus-storage project in Antofagasta, Chile.
April 22, 2025
Colombian energy supplier Celsia has acquired a 375MW solar PV portfolio in Colombia from renewables developer Mainstream Renewable Power.
April 7, 2025
The PPA will enable the construction of a 238MW PV plant in Peru and increase Zelestra’s Peruvian contracted portfolio to more than 530MW.
April 2, 2025
Brazilian mining giant Vale has sold a 70% stake in a renewable power portfolio in the country, generating around US$1 billion in cash.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece