The annual solar photovoltaic (PV) installations in key Americas countries are expected to grow at 5.5%, generating $141.2 billion in annual investment by 2022, according to a new report by Frost & Sullivan. Backed by strong regulatory activity aimed at adjusting incentives and support mechanisms, solar has extended beyond the traditional markets of the US and Chile to Mexico, Brazil, Argentina and Colombia. The annual installed capacity reached 12.8 GW in 2017, and the total generation capacity, which currently stands at 59.0 GW, is likely to more than double to 141.3 GW by 2022.
"The multiple supportive mechanisms and electricity regulatory frameworks across the region have made market participants diversify strategies, encouraging business model innovation. Solar PV and storage expansion will become increasingly attractive propositions as battery system costs decline further,” said Maria Benintende, Senior Analyst for Energy & Environment at Frost & Sullivan.
The report, “Americas Solar Power Market, Forecast to 2022,” says that distributed generation (DG) annual additions are likely to outstrip utility-scale at a compound annual growth rate of 9.9%, driven by supportive policies, falling technology costs, increased end-user awareness, market maturity and higher electricity prices. Benintende notes that in Brazil, Mexico and Chile, especially, maturing DG schemes are creating significant opportunities for equipment suppliers, installers and other energy participants.
"Renewable auctions are key to solar development in the region," noted Benintende. The investments in solar in 2018 are estimated to have touched $4.2 billion across the Latin American countries; however, to make the most of their potential, suppliers need to develop a strong local strategy. This can be a huge differentiator in a region where interpersonal relations are important."
Countries across the Americas’ region are at different stages of development but are all driven by the rising price competitiveness of solar technology, net metering policies, decarbonization of the energy matrix and diversification goals. According to Frost & Sullivan, the growth opportunities in the select countries include:
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