A few days ago, the European Solar Energy Industry Association released the "Global Market Outlook Report" and pointed out that in 2021, the newly installed photovoltaic power generation capacity in Latin America will be 9.6 million kilowatts, an increase of 44%. By the end of 2021, the installed capacity of photovoltaic power generation in Latin America has exceeded 30 million kilowatts, an increase of more than 40 times compared with 2015. It is expected that under the promotion of policies, the photovoltaic market in Latin America will continue to improve in the future. Before 2026, the installed capacity of photovoltaic power generation in the region will increase by 30.8 million kilowatts every year.
In the next five years, Latin America is expected to rank among the top five PV markets in the world. At present, about 25% of the energy supply in Latin America comes from renewable energy, mainly hydropower and biomass power generation. With the increasing demand for emission reduction and economic recovery, the development of photovoltaics has gradually become an important task in the region. Among them, Brazil, Colombia, Chile and other countries regard the development of renewable energy represented by photovoltaics as the main driving force for economic growth, and put forward green development plans or related initiatives.
Brazil is the first country in Latin America to deploy renewable energy through bidding for centralized photovoltaic power plants. In addition, distributed photovoltaic projects have always enjoyed preferential policies in Brazil, including tax reductions and allowing owners to sell surplus electricity online.
Amid soaring electricity bills, photovoltaics have become a popular choice for electricity consumption in Brazil. In the past year, electricity prices in Brazil have risen by 20% to 25%, and consumers who choose photovoltaics will undoubtedly save a lot of daily expenses. This further enhances the competitiveness of photovoltaic power generation.
Statistics from the European Solar Energy Industry Association show that in 2021, the newly installed capacity of photovoltaic power generation in Brazil will reach 5 million kilowatts. As of the end of April this year, the installed capacity of photovoltaic power generation in Brazil has reached 15 million kilowatts. It is estimated that in 2022, the newly installed capacity of photovoltaic power generation in Brazil will exceed 12 million kilowatts, and the total installed capacity of photovoltaic power generation will reach 25 million kilowatts, and the industry is growing explosively.
However, with the increase of photovoltaic power generation capacity, Brazil is facing the dilemma of lagging energy storage development. In 2021, the scale of bidding for centralized photovoltaic power plants in Brazil has been reduced. Brazil has established relevant working groups, hoping to formulate a roadmap in terms of legislation, regulation, taxation, technology, financing, etc.
The photovoltaic market of Colombia, another major economy in Latin America, is also in a stage of accelerated development. Previously, an important factor limiting the development of the photovoltaic industry in Colombia was the underdeveloped transmission network. In 2019, Colombia launched the transformation and upgrading of the power grid. At present, market conditions have been improved to a certain extent, and energy companies have invested in photovoltaic projects.
Chile also has good light conditions. Up to now, the installed capacity of photovoltaic power generation in Chile has exceeded 3 million kilowatts, and the new installed capacity of photovoltaic power generation is about 500 thousand kilowatts every year, and the growth is stable. According to the plan of the Chilean government, in order to achieve the carbon reduction goal, Chile will add at least 6 million kilowatts of renewable energy installed capacity in the future.
Industry insiders predict that the newly installed capacity of global photovoltaic power generation will exceed the 200 million kilowatt mark for the first time this year, setting a new record. The European Solar Energy Industry Association predicts that by 2026, Latin America, especially Brazil, will become the main market for new installed capacity of photovoltaic power generation in the world.
