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

Read Next

Premium
July 12, 2024
Even though the solar PV market in Ecuador is currently non-existent, with only a few projects operational and mostly in the distributed generation market, it is about to take off, says José Luis García Pérez, Latin America’s CEO at Spanish developer Zelestra, formerly known as Solarpack.
June 27, 2024
Enel Colombia, the Colombian subsidiary of Italian renewable energy group Enel Green Power, has reached commercial operations of 240MW of solar PV capacity.
June 24, 2024
Renewable energy infrastructure investor Actis has launched a new independent power producer (IPP) company in Peru, seeking to develop 12GW of energy projects.
June 17, 2024
Colombian public utility Empresas Públicas de Medellín (EPM) has reached commercial operation at its 83MW solar PV plant.
June 11, 2024
Argentinian renewables developer Genneia has invested US$250 million to build two solar plants in Argentina with a combined capacity of 273MW.
June 11, 2024
Recurrent Energy, the renewables developer arm of solar manufacturer Canadian Solar, has powered a 360MW solar PV plant in Brazil.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
July 31, 2024
1:00 PM (BST) / 2:00PM (CEST)
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia
Solar Media Events
October 8, 2024
San Francisco Bay Area, USA
Solar Media Events
October 15, 2024
Santiago, Chile