Brazil’s cumulative installed capacity will expand from 19.8 GW in 2013 to over 32.9 GW by 2017, representing a Compound Annual Growth Rate (CAGR) of 4.17 percent. GlobalData’s latest report also states that Chile will see the fastest increase in renewables over the forecast period, with cumulative installed capacity rising from just 1.06 GW in 2013 to 5.37 GW by 2017, at an impressive CAGR of 50.12 percent.
“Brazil is looking to increase power generation from renewable energy sources and is aiming for 10 percent of its annual generation to come from these sources by 2020” said Ankit Mathur, GlobalData’s Practice Head for Power. “In order to achieve this target, the Brazilian government introduced the Program of Incentives for Alternative Electricity Sources (Programa de Incentivo a Fontes Alternativas de Energia Elétrica; PROINFA) in 2002 to boost renewable energy adoption.”
Mr Mathur added that the first phase awarded auctions for 3.3 GW of wind, biomass and small and medium-sized hydropower plants in 2004. The PROINFA programme was succeeded by auction procedures in 2011, to encourage further development of the power generation sector.
Biomass accounted for the largest share of Brazil’s renewable energy mix with 50.1 percent in 2014. However, wind power is expected to become the new leading sector with a 41.4 percent share in 2017, up from 27.3 percent in 2014.
Renewables are expected to see the largest growth in Chile’s overall power sector, with the country beginning to harness its significant potential in solar, wind and geothermal power. Wind accounted for the largest share of 39.9 percent in 2014, followed by biomass with 22.2 percent and solar with 19.2 percent. Solar capacity is expected to become the new leader in Chile with 16 new PV projects planned for this year alone, adding 47.6 percent in 2017 thereby sending wind power to second place with a 34.7 percent share.
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