Distributed generation – a growing market in Latin America
In the early aughts of the 21st century, distributed generation (DG) systems in Latin America were mainly installed as off-grid systems in remote rural areas that were isolated from the grid, writes Maria Chea, Solar Analyst at IHS Markit. As the El Niño phenomenon and high oil prices continued to exacerbate high electricity prices and power shortages, governments began to turn their attention to distributed generation, including PV systems, to assuage strains on their national grids.
Countries like Brazil, Mexico, and the Dominican Republic enacted distributed generation (DG) laws as early as 2011 and 2012 to promote growth in the segment. Despite this early legislation, market growth was slow mainly because PV technology was still expensive and unattractive in markets with regulated pricing. It wasn’t until after 2016 when the sector …
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