The South American renewable energy market is starting to take off, particularly in Brazil, with the industry aided by shrinking costs for photovoltaics and new government programs that facilitate business.
Over the decade to 2020, the South American renewable energy market is expected to increase at a compound annual growth rate (CAGR) of 10.1%. Small hydro and wind energy are likely to experience high growth during this period. The cumulative installed capacity of small hydro power in the top five countries is expected to increase at a CAGR of 7.8%
Major drivers for the growth in the South American renewable energy market include favourable polices, legislation in respective countries, financial support from international banks and clean development mechanism projects.
The South American region of nearly 600 million residents holds great promise for renewable energy, thanks to relatively high costs for electricity, ample sunlight and a fast-expanding middle class that is increasing its energy consumption.
Brazil’s total cumulative installed capacity in 2011 was 120,553 Megawatts (MW), with a massive 80% represented by renewable energy (if large hydro is included). Approximately 70% of this was accounted for by hydropower, while other alternative power sources, biomass, wind, solar photovoltaic (PV) and small hydro, made up 10% in total.
Excluding the substantial large hydropower sector, Brazil’s renewable installed capacity is expected to leap from 13,260 MW in 2012 to 38,015 MW by the end of the decade, climbing at a Compound Annual Growth Rate (CAGR) of 14%.
For more information on the South American renewable energy market, see the latest research: South American Renewable Energy Market Report
Follow us on Twitter @CandMResearch