Sector Research: Opportunities in Latin American Solar.

Sector Research: Opportunities in Latin American Solar.

We are pleased to bring you the latest sector research from the 350 PPM Research Department. Focusing on Opportunities in Latin American Solar.

This report will outline some of Latin America’s key tools to promote investment and provide an insight into some of the region’s most attractive markets for solar investment. Please see below for an overview with extracts from the full report. Click below to download the full report:

Solar in 2020 & Key Mechanisms

The report opens with a review of Solar in 2020 and looks at Solar’s Inflection Point. “Solar power is now the cheapest form of electricity in many countries worldwide”.

“At COP 25, 9 Latin American countries committed to significantly surpass their Paris Agreement obligations.”

Key Market Mechanisms: Clean Energy Auctions, Feed in Tariffs (FITs), Corporate PPAs are covered in some details whilst other mechanisms such as net-metering, tax exemptions, direct funding etc. are also mentioned.

Country by Country Analysis for Latin America: Brazil, Mexico, Chile & Colombia – including Background, Opportunities & Summary

Brazil:

Utility Scale: “Brazil’s solar market has been made globally famous by the success of its auctions.”

Conclusion: “350 PPM is optimistic about the long-term prospects for utility scale solar investment in Brazil.”

Mexico:

Utility Scale: “Mexico’s clean energy auctions, which aren’t always in the investors interests as they tend to reduce prices, aren’t expected to restart under the current administration. However, the prospects for utility scale solar investment remain positive.”

Chile:

Opportunities: “The extent of Chile’s recent renewables expansion has created unexpected consequences including suppression of power prices and even instances of curtailment in some region, though these have partly been a response to changes in copper demand and low fossil fuel prices.”

Colombia:

Background: Colombia is the fastest growing of Latin America’s biggest economies.

Conclusion: “350 PPM views Colombia as the “market to watch” in Latin America.”

Conclusion and Comparison:

“Latin America is on course for another impressive decade in renewables growth. This proliferation presents myriad investment opportunities in many markets in the region. Each country reviewed in this report will be an ideal investment location depending on strategy and risk profile.

That said, 350 PPM views Colombia as an extremely exciting market for solar development and installation in Latin America in 2020. We expect economic and business fundamentals, that are attractive today, to continue in the medium term and the government’s bullish renewables commitments to positively influence policy in investors’ favour”.

The report gives detailed data and tables for clear analysis of the Solar Sector in Latin America.

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