Rapid growth in solar photovoltaic power generation in Latin America

Publish Time:2022-08-02 Sources:

A few days ago, the European Solar Energy Industry Association released the "Global Market Outlook Report" and pointed out that in 2021, the newly installed photovoltaic power generation capacity in Latin America will be 9.6 million kilowatts, an increase of 44%. By the end of 2021, the cumulative installed capacity of photovoltaic power generation in Latin America has exceeded 30 million kilowatts, an increase of more than 40 times compared with 2015. It is expected that under the promotion of policies, the photovoltaic market in Latin America will continue to improve in the future. Before 2026, the installed photovoltaic power generation capacity in the region will increase by 30.8 million kilowatts every year.

The report pointed out that in the next five years, Latin America is expected to rank among the top five photovoltaic markets in the world. At present, about 25% of the energy supply in Latin America comes from renewable energy, mainly hydropower and biomass power generation. With the increasing demand for emission reduction and economic recovery, the development of photovoltaics has gradually become an important task in the region. Among them, Brazil, Colombia, Chile and other countries regard the development of renewable energy represented by photovoltaics as the main driving force for economic growth, and put forward green plans or related initiatives.
Brazil is the first country in Latin America to deploy renewable energy through bidding for centralized photovoltaic power plants. In addition, distributed photovoltaic projects have always enjoyed preferential policies in Brazil, including tax reductions and allowing owners to sell surplus electricity online.

Rodrigo Lopes Sauaia, CEO of the Brazilian Solar Energy Association, said that policy support is the key to the continued expansion of the Brazilian PV market. According to Brazil's latest law, distributed photovoltaic projects put into operation before the end of 2022 will enjoy tax reductions until 2045.

Photovoltaics has become a popular choice for electricity consumption in Brazil amid soaring electricity bills. "In the past year, electricity prices in Brazil have increased by 20% to 25%, which will undoubtedly save a lot of daily expenses for end consumers who choose photovoltaics. This further enhances the competitiveness of photovoltaic power generation." Rodrigo Lopes Sauaia said.
Statistics from the European Solar Energy Industry Association show that in 2021, the newly installed capacity of photovoltaic power generation in Brazil will reach 5 million kilowatts. As of the end of April this year, the cumulative installed capacity of photovoltaic power generation in Brazil has reached 15 million kilowatts. It is estimated that in 2022, the newly installed capacity of photovoltaic power generation in Brazil will exceed 12 million kilowatts, and the cumulative installed capacity of photovoltaic power generation will reach 25 million kilowatts, showing an explosive growth of the industry.

However, with the increase in the cumulative installed capacity of photovoltaic power generation, Brazil is facing the dilemma of lagging energy storage development. In 2021, the scale of bidding for centralized photovoltaic power plants in Brazil has been reduced. According to Rodrigo Lopes Sauaia, relevant working groups have been established in the Brazilian industry, hoping to formulate a roadmap in terms of legislation, regulation, taxation, technology, financing, etc.
The photovoltaic market of Colombia, another major economy in Latin America, is also in a stage of accelerated development. Previously, an important reason for limiting the development of the photovoltaic industry in Colombia was the underdeveloped transmission network. In 2019, Colombia launched the transformation and upgrading of the power grid. At present, market conditions have been improved to a certain extent, and energy companies have invested in photovoltaic projects.

Chile also has good light and radiation conditions. Up to now, the cumulative installed capacity of photovoltaic power generation in Chile has exceeded 3 million kilowatts, and the annual installed capacity of photovoltaic power generation is about 500 thousand kilowatts, and the growth is stable. According to the plan of the Chilean government, in order to achieve the carbon reduction goal, Chile will add at least 6 million kilowatts of renewable energy installed capacity in the future.

Industry insiders predict that with the support of the Latin American market, the newly installed capacity of global photovoltaic power generation will exceed the 200 million kilowatt mark for the first time this year, setting a new record. The European Solar Energy Industry Association predicts that by 2026, Latin America, especially Brazil, will become the main market for new installed capacity of photovoltaic power generation in the world.