Latin America and Caribbean region is expected to install approximately 9 gigawatts (GW) of solar projects over the next five years, according to the latest NPD Solarbuzz Emerging PV Markets Report.
Of this, 1 GW of projects are already under construction and 5 GW of projects have received approval to proceed and could begin construction soon.
Currently the solar capacity in the region exceeds 22 GW of projects across all phases of development.
Solar PV is emerging as the preferred energy technology for Latin American and Caribbean countries, says NPD Solarbuzz.
The demand is driven by the rising cost of electricity and also the fact that the region receives high solar radiation.
A noteworthy change affecting the market is the emergence of large-scale utility power projects, primarily in Brazil, Chile, and Mexico. Earlier these markets attracted only small-scale and off-grid solar PV applications and rural electrification.
Many of the large-scale projects are being developed by leading solar firms like U.S.-based companies First Solar, SunPower and SunEdison, and European developers Mainstream, Enel, and Solaria, NPD Solarbuzz identified.
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“Many countries across the LAC region have the potential to develop into major solar PV markets in the future,” said Michael Barker, senior analyst at NPD Solarbuzz.
“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,” Barker added.