LatAm sees record PV growth in Q2

Latin America added 363MW of utility-scale solar power generation in Q2, a quarterly high and an 80% year-on-year increase.

A report by GTM Research says that growth was led by Honduras, which brought seven projects online, adding 307MW, growth that was spurred by the country's bonus 10% tariff on the marginal grid cost.

In May, Compañía Hondureña de Energía Solar and Solar Power opened the 144MW photovoltaic complex in Nacaome, Central America's largest solar park, pushing the country's installed solar capacity to 2GW.

E&Y's most recent Renewable Energy Country Attractiveness Index, released in March, highlighted 20 approved solar projects in Honduras for a combined 450MW, in addition to 250MW under construction.

In February, CIFI announced it had closed a deal for US$87mn in project financing for the 49.9MW Nacaome II-Agua PV plant in Honduras to be developed by Producción de Energía Solar y Demás Renovables.

Chile posted the second-largest growth rate in GTM Research's Latin America PV Playbook, adding 29MW. Panama connected its largest PV plant to date, adding 12MW, while Venezuela and Antigua both brought their first utility-scale PV plants online during the quarter.

In July, US firm SunEdison began construction of the 110MW Quilapilún PV plant in Chile's Santiago metropolitan region that will supply 242GWh/y to the country's grid.

Second quarter also saw a record number of project starts, with 981MW entering construction across the region, a 61% increase on 2Q14. Chile headed the list, followed by Mexico, with 54MW under construction, and Jamaica with 20MW in the pipeline. Overall, Latin America's pipeline grew 15% in Q2 compared with the previous quarter.

Utility-scale projects will comprise 92% of Latin America's total 2.3GW of solar capacity forecast to be up and running by the end of this year, the report states.

"Commercial users tend to pay the highest retail electricity rates in almost every Latin American country," according to GTM Research's senior solar analyst Adam James. "With its attractive prices and easier access to capital, the market will grow quickly from its small base today."

Latin America is expected to install 2.6GW of commercial and industrial solar capacity by 2020, GTM Research predicts.

LATEST DEVELOPMENT

CAS Holding on Tuesday announced commercial startup of 61MWp plant Aura Solar II (El Cáguano) in Choluteca, Honduras, that will generate an estimated 125GWh/year.

BNamericas last week revealed that Central America regional power interconnection commission CRIE approved the project's connection request.

Isolux Corsán built and will operate the PV complex, which covers 150ha and will sell power to state power company Enee under a 20 year PPA. Aura Solar II will benefit from a special tariff for having begun operations on time as part of the country's efforts to promote renewable energy.

CAS Holding – comprising Corporación Aura Solar (México) and Hon Solar (Honduras) – and Gauss Energía from Mexico developed the project which includes financing from IFC and German development bank DEG.

BNamericas will host its 5th LatAm Power Generation Summit in Lima, Peru, on August 19-20 and its 9th South America Infrastructure & Energy Summit in Bogotá, Colombia, on September 9-10. Click here to download the agendas.