Latin America is a region with immense potential to accelerate the expansion of solar energy. Its numerous emerging economies are a growing source of demand, while the political climate across the continent is largely in favor of renewable energy.
The total electricity consumption is expected to double by 2050 and even if all the countries have a well developed hydropower sector which ensures over 50% of electricity generation, the other renewable sources must be developed to foster a sustainable development of the region.
Brazil, Chile, and Mexico—followed closely by Argentina—ranked among the most important countries. The ranking features the countries’ ambitious clean energy targets, fiscal incentives, and legislations such as Mexico’s energy transition law, which is designed to create a favorable business climate and boost investor confidence in the long-term market for renewables.
In many countries in Latin America, most notably Brazil, auctions and infrastructure projects now come with greater opportunities for foreign investment, while distributed energy, led by PV and storage, is starting to become a notable force in several developing countries and remote regions.
The transition to a fully renewable powered energy system is possible as shown by authoritative studies of autonomous universities.
Renewable power generation – mainly solar – will contribute 67% to the total electricity generation by 2050 as shown in the following figure: