Latin America is emerging as a key region for the future of solar energy. Countries like Chile, Brazil, and Mexico are leading the way, offering significant opportunities for photovoltaic (PV) development. According to the IHS Solar PV Market Outlook report, the region is set to become a major player in the global solar market over the next few years, driven by several growth factors.
One of the main reasons behind this shift is the increasing demand for electricity, which is expected to rise by 26% in the region. High industrial and commercial electricity prices, combined with abundant local renewable resources, make solar energy an attractive alternative. As a result, Latin America is drawing growing interest from PV companies seeking new markets to expand their operations.
In the period between 2012 and 2016, the total installed capacity across eight key Latin American markets was projected to reach 5.3 GW. Chile dominated this growth, accounting for 60%, followed by Mexico at 16% and Brazil at 15%. Other countries such as the Dominican Republic, Argentina, Jamaica, Ecuador, and Peru also showed strong potential for solar development.
Chile, in particular, has been a leader in solar expansion, with large-scale projects aimed at meeting the rising energy demands of its mining sector. Meanwhile, Brazil, the largest country in the region, is exploring solar energy after a surge in wind power. In the short term, commercial sectors may offer the most promising opportunities for photovoltaics.
Several other nations, including the Dominican Republic, Jamaica, and Ecuador—countries that rely heavily on oil-based power generation—are also making strides in solar development. Combined, announced projects in these regions could reach nearly 200 MW. Additionally, solar bidding activities in Ecuador and Argentina have been particularly active.
However, challenges remain. While many projects have been announced, only about 10% have secured buyers for the electricity they produce, indicating that many initiatives are still in early stages. The lack of clear government incentives and long-term goals also poses obstacles. Moreover, in some markets, solar energy struggles to compete with cheaper alternatives like wind and hydropower, leading to a more gradual and decentralized development path.
Spain has played a notable role in the region, with companies like T-Solar, OPDE, Isofoton, and Ingenostrum involved in various projects. Global players such as AES, Element Power, and Mainstream are also investing in solar opportunities across Latin America. The Inter-American Development Bank is a key financier, alongside banks from Europe, the Americas, and Asia, supporting local developers.
In high-risk markets, securing sovereign risk insurance can be costly, with premiums reaching up to $5 million for a 20MW project. This underscores the importance of multilateral financial support.
Currently, the majority of the solar supply chain operates in Mexico, supplying North America. Latin America has approximately 1.4 GW of solar manufacturing capacity, with two new plants planned in Argentina and Brazil, potentially adding over 130 MW to the region’s solar capacity.
Insulation Pvc Roof Sheet,Heat Insulation Pvc Roof Sheet,Heat Insulation Pvc Roofing Sheet,Pvc Roofing Sheet For Farms
ZHENHAO BUILDING MATERIALS CO.,LTD , https://www.zhpvctile.com