Renewables Mar 4, 2020 12:42 PM
Wood Mackenzie conducted an analysis on solar energy projects in emerging markets, highlighting positive results for the industry in the coming years.
Emerging markets will experience a ‘solar energy boom’ in the next decade, because costs associated to the development of energy projects will continue to fall, while the global market diversification will increase at a constant pace, the firm said.
“Saudi Arabia, Pakistan and Malaysia will join the giant gigawatt solar energy club in the next few years,” Mackenzie told Valora Analitik.
So far, 44 countries have planned auctions to develop energy projects, and 120 countries announced a 180GW project portfolio, the report added.
Mackenzie highlighted that emerging markets offer opportunities that go beyond traditional plants connected to the network, as off-grid photovoltaic solar energy installations will offer different opportunities.
The company, however, explained risks associated with doing business in emerging markets will be a key challenge for investors.
Bottom-Line: With an undeniable solar energy potential, Colombia has everything it takes to become a benchmark for the industry in the region.
A solid regulatory framework and legal certainty, however, will be key to keep attracting the investors’ interest.