UN Report: Distributed Solar Generation Drives Energy Transition in Latin America and the Caribbean

United Nations Statement

This is an automated translation of the original press release issued in Spanish

Panama, September 14, 2022 – The SOLE Generation initiative today presented the first status report on distributed solar generation and other distributed energy resources in the region. The report “ The state of distributed solar generation in Latin America and the Caribbean ” analyzes market advances, regulation, incentives and success stories in 11 countries and markets.

In the last decade, distributed solar generation grew an average of 120 percent year-on-year in the region, according to Generation SOLE , an initiative of the United Nations Environment Program (UNEP).

The report covers Argentina, Brazil, Chile, Colombia, Costa Rica, Guatemala, Mexico, Panama, Puerto Rico, the Dominican Republic and Uruguay, which represent 80 percent of the electricity demand in the region.

“In 2021 alone, more than 475,000 distributed solar generation systems were incorporated, totaling 4.6 GW of new capacity. These facilities represented investments of 5,970 million dollars, generating 52,000 new jobs and avoiding the emission of more than three million tons of carbon dioxide. The economic and development potential of this technology for the region is enormous”, highlights Gustau Mañez Gomis, Deputy Regional Director of UNEP.

According to the report, the region has reached a total of 11.9 GW of installed capacity as of December 2021, being led by Brazil, with more than 8.9 GW, and Mexico, with about 2.3 GW ( see image at end of statement ).

Generación SOLE highlights the state of maturity of distributed solar technology, which is currently booming in the region, representing 40 percent of total installed solar capacity.

In most of the countries analyzed, distributed solar generation (DSG) is included among the climate actions to comply with the commitments assumed in the framework of the Paris Agreement. The GSD for self-consumption plays a key role in the transformation of the energy sector, enabling new decentralized generation models. By adopting distributed energy resources, users become agents of change by managing their own energy.

The residential sector has a greater share in the most developed markets in the region. In countries whose implementation is recent, the market begins its deployment in the commercial and industrial sectors. This initial development results in a general decrease in prices, indirectly benefiting the residential sector.

Generación SOLE identified that the repayment period for a residential system is around six years in the surveyed markets, while commercial and industrial systems are close to five and four years, respectively.

The initial investment in equipment is one of the main barriers to expansion of these technologies. In order to massively promote distributed generation, it is strategic to increase the availability of financing, enable new business models and implement adequate promotional mechanisms. The report highlights that, in almost all the countries surveyed, governments implemented incentives to promote these technologies.

The new report provides tools to support and strengthen public policies, collaborate with the development of markets, and boost an economy that is resilient to the climate crisis throughout the region.

Additional Resources

Generación SOLE invites you to a series of online seminars on the findings of this report with the participation of leaders from the countries of the region. The first seminar will take place on Thursday, September 29 at 9:00 a.m. (Panama time). Register at the following link to participate in the event: https://forms.gle/Bk9jf5iuDzXiVaYCA .

The report " The state of distributed solar generation in Latin America and the Caribbean" , carried out by the SOLE Generation initiative of UNEP, with the support of the European Union through the EUROCLIMA+ Program, AECID and OLADE, is published for download at the following link: https://www.unep.org/node/32532