Much still needs to be done when it comes to exploring the potential of photovoltaic solar energy in Latin America, despite the growth of the sector in the region. It is clear that there is a lot of work to be done and that, with massive from governments and all segments of society, development would bring countless benefits. Some numbers relevant information were released by the World Bank, which is worth checking out in this post.
Tool measures solar energy production potential
A report released by the World Bank reveals that one fifth of the world's population is distributed among 70 countries with high potential for solar energy exploitation. According to the document, 93% of the world's population is located in countries with favorable conditions for the implementation of photovoltaic solar energy with the potential for a positive return. This means that investment in the production of clean and cheaper energy will have a positive return in a not very long period of time.
The data listed above is gathered in the Global Solar Atlas, also made available by the World Bank. This is the first tool that allows the analysis of the potential for solar energy production in each country, region or specific location. Some might say that it took a while for this service to be developed, but the benefits that the data brings to the sector are enormous.
Potential in Latin America
The figures show that countries such as Argentina, Peru, Chile and Mexico have high potential for generating solar energy. In the case of Mexico, 1% of the country's total area has the potential to produce enough photovoltaic solar energy to supply the entire Mexican population. Brazil does not have specific points of high incidence, as is the case with Mexico.
Our potential is well distributed throughout the territory, starting in the central region and moving mainly to the northeast and south. Our distinguishing feature is low seasonality, that is, there are no periods of high potential or production, but a potential considered positive throughout the year. However, we have already sured 300 thousand DG (distributed generation) systems connected to the grid, with 3,6 GW of installed capacity and 374 thousand consumer units.
Other determining factors for energy potential
It is worth noting that in addition to the solar source, the growth potential of the solar industry is determined by electricity needs, or restrictive policies. There is also an influence on costs and payback time, climate-related risks, stability of electrical grids and predictability of solar energy supply. Not to mention the interconnection of networks that allow transmission and distribution, in addition to other technical, social and economic factors.
Therefore, solar PV tends to remain economically attractive even in countries with relatively low solar resource potential. This is due to the prevalence of high electricity prices or high daytime peak load in industry. We know that many countries are less developed in of reliability of supply and access to electricity. In these places, there tends to be a very high, hitherto untapped, solar PV potential.
World Bank wants more investments
Access to data like this informs investors about how much potential can be explored and on what scale. The World Bank's interest is to make it easier for investors to make decisions about investing in this sector. The World Bank's Energy Sector Management Assistance Program aims to encourage more investments in countries with great potential for solar energy production, either for reasons that geography favors, or because there is a need to improve production and consumption power. Thus, the permanent assessment of each country's potential reduces the risks of investing in this sector. It is worth mentioning that, in Brazil, this market has already accumulated R$17 billion invested since 2012, generating 120 thousand jobs and the certainty that there is still much to be explored.
by the World Bank
The World Bank is committed to ing these countries to seize the opportunity of low-cost, clean solar energy. This can be done in a way that s economic development and job creation. Such measures can be implemented through the Solar Risk Mitigation Initiative of the Energy Sector Management Assistance Program.
The mentioned includes the expansion of markets for the distribution of solar home systems through the initiative Global Lighting. It also extends to the establishment of mini green grids, investment in large-scale solar parks and shared infrastructure, in of private sector development. This data represents a huge opportunity for Latin America to position itself as a solar energy hub.
In addition to strengthening the economy and sustainability to address climate issues such as water crises and other humanitarian issues, the World Bank's actions are linked to development and poverty reduction in the world. Seeing the institution analyze countries' potential for solar energy production and identify the sector as a vector for development, to the point of gathering data and, with it, helping investors make decisions about producing cleaner and cheaper energy, only shows that we are on the right track when we work to provide greater access to equipment and technology related to solar energy. To learn more about financing options for solar energy projects for distributed generation, click here.
