NPD Solarbuzz, the solar energy market research company has just released a new report about the emerging photovoltaic markets in Latin America and the Caribbean, which it predicts are set to explode, with an annual compound growth rate of 45% over the next few years.
Chris Sunsong, an analyst at NPD Solarbuzz, said that, “historically, PV demand was confined to rural off-grid and niche applications, but new renewable energy policies and incentive programs are now opening up the region for strong PV deployment. Set against a backdrop of strong economic growth, expanding energy demand, and increasing electricity prices, the conditions for PV adoption appear particularly attractive.”
Mexico, Chile, and Brazil, have been estimated to have almost 70% of PV capacity by 2017, as a result of their current renewable energy policies.
Related Article: Solar and Big Oil Join Forces in Middle East
The report also predicted that by the end of last year, energy regulators in Latin America and the Caribbean would have received applications for more than six gigawatts of solar energy projects.
Unfortunately there still remain a variety of technical, economic, and political hurdles that must be overcome before the solar sector can reach its potential in the area.
Sunsong stated that, “PV connection and integration procedures are not yet clearly defined, and there are concerns about grid stability as PV contributions come online. Electricity subsidies in Mexico and low natural gas prices in Peru are also delaying the onset of PV grid-parity for some end-user categories, while import tariffs across the region are keeping PV system costs on the high side.”
By. Joao Peixe of Oilprice.com