By : Inspenet, Nov 29, 2022
Photovoltaic electricity generation will be the cheapest technology in Latin America as of next year, says the latest research report from consulting firm Wood Mackenzie.
According to the Levelized Cost of Electricity (LCOE) study in Latin America, it assured that solar generation will remain the cheapest in the region at least until 2050.
Wood Mackenzie forecasts that solar power will remain the lowest-cost energy of all technologies in Latin America through 2050, with an average cost of $14 per megawatt hour (MWh).
According to Leila Garcia da Fonseca, Energy Research and Renewable Energy Manager for Latin America at Wood Mackenzie, energy demand in Latin America will almost double by 2040 compared to 2021 levels, a higher growth rate than that of North America.
“However, despite the fact that the region is already a pioneer in the generation of renewable energy, questions remain about how Latin America will contribute to the global energy transition effort,” he warns.
Wood Mackenzie notes that the market with the lowest LCOE in the region for PV generation is Mexico, due to exceptionally high capacity factors, while Chile is in second place.
In addition, García da Fonseca added that significant reductions in solar energy costs are expected, with an average decrease in capital investment of 55 percent between this year and 2050.
Conversely, onshore wind energy will face different challenges, which will increase costs by 2024. However, after 2033, onshore wind will continue to be cheaper than gas in all countries in the region until 2050.
Source : https://energiaadebate.com/energia-solar-es-la-mas-barata-en-america-latina/
Photo: ShutterStock
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