Southern Cone solar market to reach USD 62m in 2016 - Frost & Sullivan

Oct 24, 2012 - The emerging Southern Cone solar market is expected to see steady growth over the next several years, reaching revenues of USD 61.8 million (EUR 47.6m) by 2016, Frost & Sullivan projects.

In 2011, the market generated revenues of more than USD 9.9 million, the research and consulting firm estimates in a new analysis. The solar markets in Argentina, Chile and Uruguay are expected to expand as power capacity in the area continues to increase in response to growing demand and as governments pursue energy diversification and security.

While the Southern Cone solar market had installed capacity of 3.5 MWp in 2011, or less than 0.5% of the worldwide market, it will show a compound annual growth rate of 51% until 2016, reaching a cumulative capacity of 42 MWp, said Frost & Sullivan industry analyst Martin Cataife.

The market's fundamental driver is the region's rich solar resource, the firm said, noting also that global photovoltaic (PV) module prices have fallen significantly. Still, the capital costs of PV and concentrating solar power (CSP) plants represent a major barrier, according to the analysis. The absence of investment in research and development, meanwhile, has caused a shortage of trained staff. Cataife said that governments should promote awareness on solar technologies and added that "exhaustive segment regulation and specific programs addressing the needs of the solar market are also vital."

(USD 1.0 = EUR 0.770)

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