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. The
total PV project pipeline is growing throughout the region and now exceeds 22
GW of projects across all phases of development. Over the next five years,
approximately 9 gigawatts (GW) of projects will be installed. 1 GW of projects
are already under construction, and 5 GW 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. 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 U.S.-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. 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.
Figure:
Latin America & Caribbean Five-Year Cumulative Demand Forecast by Project
Status