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Solar energy in Latin America


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Published on: April 26, 2021 / update from: April 26, 2021 - Author: Konrad Wolfenstein

Solar energy in Latin America - Image: caioacquesta|Shutterstock.com

Solar energy in Latin America – Image: caioacquesta|Shutterstock.com

Because a large portion of the land area lies at tropical latitudes, Latin America has always been associated with warm weather and sunshine. However, in recent years, the popularity of this abundant natural resource has expanded well beyond tourism to the energy sector. In line with global trends, installed solar photovoltaic capacity in Latin America and the Caribbean has increased almost a hundredfold in just under a decade and will exceed 20 gigawatts in 2020. As the cost of solar installations declines annually and the call for more investment in renewable energy grows louder, there is no sign of this trend slowing down.

An economic sector on the rise

When it comes to installed capacity, the solar PV industry in Latin America is led by three nations – namely Brazil, Mexico and Chile.
Together, they accounted for over 80 percent of the region's solar capacity in 2020, and expansion projects are already in the pipeline. Installed capacity in Brazil is expected to more than double between 2020 and 2024, reaching nearly 10 gigawatts last year. Mexico is expected to reach a similar capacity in the same year. In Chile, almost four gigawatts of solar PV capacity was already under construction as of January 2021, and additional approved projects add up to a total capacity of more than 22 gigawatts. While these three countries dominate the current market, there is still more potential to be tapped in Latin America. Although Argentina still lags behind its neighbors Brazil and Chile, its solar capacity almost quadrupled between 2018 and 2020. In Colombia, projects with a total capacity of more than 400 megawatts were under development in the first months of 2021. In the Caribbean, the Dominican Republic stands out with at least 800 megawatts of planned capacity.

Foreign investment is boosting the Latin American market

Although the development of solar energy in Latin America is strongly supported by the government to meet the ever-increasing demand for electricity in the region while meeting greenhouse gas emission targets, the segment has additionally attracted a lot of international interest. In 2019, foreign investment in solar energy in Latin America exceeded $5 billion, increasing nearly fivefold in half a decade. Mexico and Chile were the leading recipients of such investments this year, together accounting for almost 90 percent of the investment value.

Solar power in Latin America

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Solar power in Latin America - PDF Download

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