Solar photovoltaic (PV) technology is poised to play a substantial role in fulfilling the need for increased power generation capacity across the Latin America and Caribbean (LAC) region. According to Solarbuzz, the total PV project pipeline is growing throughout the region and now exceeds 22GW of projects across all phases of development. Over the next five years, approximately 9GW of projects will be installed. 1 GW of projects are already under construction, and 5GW of projects have received approval to proceed and could begin construction soon.
"Solar PV is now starting to emerge as a preferred energy technology for Latin American and Caribbean countries," said Michael Barker, senior analyst at 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 strong solar PV growth potential in the region."
Previously, the LAC region was confined to small-scale and off-grid solar PV applications, including rural electrification. Today, however, solar PV is being targeted to address large-scale utility power project requirements, primarily in Brazil, Chile, and Mexico. Many of these projects are being developed by experienced international firms, including leading US-based companies First Solar, SunPower and SunEdison, and European developers Mainstream, Enel, and Solaria, which is increasing the likelihood that these projects will ultimately be executed.
"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."
