Solar set up surge critical to lowest-cost decarbonisation pathway for Central America
- Solar installations in Central America have to more than double this decade, prior to increasing once again out to 2050 if the area is to be placed on the lowest-cost path in the direction of decarbonisation, a research by the International Renewable Energy Agency (IRENA) has located.
Published last week, IRENA's 'Renewable Energy Roadmap for Central America' report finds that the region could save around US$ 20 billion if it went after a much more hostile decarbonisation of its energy system contrasted to its current pathway.
Analysis performed by the organisation found that installations of renewable energy projects would certainly need to treble to 1.4 GW per year by 2050 in order to reach 180GW of set up capacity.
The decarbonisation scenario (DES) made use of within IRENA's report states that annual solar installs need to more than double from the existing pathway pointer of 145MW to 375MW annually, prior to more-than-doubling once more to 780MW each year by 2050.
By 2050, the DES assumes a total generation capacity of 26GW within the Central America area, a set up base the report states would certainly harness the potential of both utility-scale solar and distributed roof capacity.
Such an installation price would take renewables' share of power generation to 97% by 2050, far beyond the 59% share the market is currently on program for.
While the DES would call for an annual financial investment of US$ 3.5 billion, equivalent to about 1.6% of the area's gdp in 2018, to be invested in renewables generators and grid upgrades, the a lot more ambitious decarbonisation pathway would certainly conserve the area some US$ 20 billion in complete power system sets you back contrasted to the existing pathway.
Francesco La Camera, director-general at IRENA, stated: Central America is getting in a "critical decade" for transforming its future energy system.
" The region has a special chance to guarantee lasting growth with renewable energy sources that can boost its energy security by mitigating fossil fuel dependence, while lowering prices, promoting the region's post-COVID-19 recovery as well as attending to climate modification."
Earlier this year, Martin Vogt, CEO of MPC Energy Solutions, pointed out to PV Tech Premium that Panama was a promising market to watch for solar PV, with 250MW of set up capacity today.