Latin America on track to deploy 2.7 GW of solar in 2016

Latin America is on track to install total of 2.7 GW solar photovoltaic (PV) capacity in 2016 as more countries in the region adopt public tenders, says London-based analytics firm IHS Markit Ltd.

Chile remains the regional leader as it is seen to account for 44% of the new installations this year. However, it is expected to slow down over the next years because of grid contraints and power prices drop, IHS Markit says.

Honduras, with about 500 MW of installed solar, is still the second largest market in Latin America, but is seen to concede its position to Mexico this year.

“Recent record-low bid prices -- as low as USD 48 [EUR 43.5] per megawatt-hour in Mexico -- are attracting the interest of governments,” said Josefin Berg, senior analyst, solar demand, IHS Markit. Argentina has started the process for tendering 1 GW of renewables.

The analytics firm pointed out that there are also certain challenges surrounding the tender model such as delays caused by administrative barriers or developers’ wish to wait for component prices to fall.

IHS Markit was formed through the recent merger of IHS Inc and Markit.

(USD 1.0 = EUR 0.908)

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