The installed capacity of photovoltaic power generation in Latin America is growing rapidly

Recently, the European Solar Energy Industry Association released the Global Market Outlook report, which pointed out that in 2021, the newly installed photovoltaic power capacity in Latin America was 9.6 million kW, up 44%. By the end of 2021, the installed PV power capacity in Latin America had exceeded 30 GW, an increase of more than 40 times compared with 2015. It is expected that, driven by policies, the photovoltaic market in Latin America will continue to improve in the future, and the installed capacity of photovoltaic power generation in the region will increase by 30.8 million kW annually before 2026.

In the next five years, Latin America is expected to be among the top five PV markets in the world. Currently, about 25 percent of the region's energy supply comes from renewable sources, mainly hydropower and biomass power generation. As the need for emission reduction and economic recovery increases, the development of photovoltaics is becoming an important task for the region. Among them, Brazil, Colombia, Chile and other countries regard the development of renewable energy, represented by photovoltaic, as the main driver of economic growth, and have put forward green development plans or related initiatives.

Brazil is the first country in Latin America to deploy renewable energy through tenders for centralized photovoltaic power plants. In addition, distributed PV projects in Brazil have long enjoyed favorable policies, including tax breaks and allowing owners to sell their surplus electricity online.

Rodrigo Savaiea, executive chairman of the Brazilian Solar Energy Association, said policy support was key to the continued expansion of the Brazilian PV market. According to Brazil's latest bill, distributed photovoltaic projects that come into operation before the end of 2022 will enjoy tax breaks until 2045.

With electricity bills soaring, photovoltaics have become a popular choice in Brazil. Electricity prices in Brazil have risen by 20-25% in the past year, and consumers who opt for photovoltaics will see big savings on their daily bills. This also further enhances the competitiveness of photovoltaic power generation.

In 2021, Brazil added 5 gigawatts of photovoltaic capacity, according to the European Solar Energy Industry Association. By the end of April this year, Brazil had installed 15 gigawatts of photovoltaic power. It is expected that in 2022, the newly installed capacity of photovoltaic power generation in Brazil will exceed 12 GW, and the total installed capacity of photovoltaic power generation will reach 25 GW, showing explosive growth of the industry.

However, as the installed capacity of photovoltaic power generation increases, Brazil is facing the difficulty of lagging energy storage development. In 2021, Brazil's centralized PV power plant tender scale has been reduced. Brazil has set up a working group to draw up a roadmap in terms of legislation, regulation, taxation, technology and financing.

The PV market in Colombia, another large economy in the region, is also accelerating. Previously, an important factor limiting the development of the photovoltaic industry in Colombia was the underdeveloped transmission network. In 2019, Colombia started to renovate and upgrade its power grid. Market conditions have improved to some extent, and energy companies are investing in photovoltaic projects.

Chile also has good light conditions. Up to now, Chile's installed photovoltaic power capacity has exceeded 3 million kW, and the annual installed capacity of photovoltaic power generation is about 500,000 kW, showing steady growth. According to the government's plan, Chile will add at least 6 GW of renewable energy capacity in the future to meet its carbon reduction target.

Industry insiders expect that this year, the newly installed scale of photovoltaic power globally will break the 200 million kW mark for the first time, creating a new record. The European Solar Industry Association predicts that Latin America, and Brazil in particular, will be the leading global market for new photovoltaic capacity by 2026.