SolarPower Europe identifies Latin American investment opportunities

SolarPower Europe says Latin America’s solar sector is at a pivotal moment. Its latest report offers recommendations on how Argentina, Brazil, Colombia, Mexico and Peru can accelerate their solar growth trajectories and unlock investments.

SolarPower Europe has published a report highlighting solar investment opportunities in Argentina, Brazil, Colombia, Mexico and Peru.

The report says each of the five nations offer a concrete case for investment due to their abundant solar resources, growing electricity demand and supportive policy environments. But it adds these countries share common barriers impacting solar deployment, including infrastructure constraints, inconsistencies in regulatory implementation across jurisdictions and inconsistent access to financing and risk mitigation tools.

SolarPower Europe's report features tailored recommendations for each country geared toward accelerating solar deployment and unlocking investments. Among the recommendations for Argentina, which is currently expanding both its utility-scale and distributed generation solar, are simplifying permitting processes, improving transmission and distribution infrastructure and boosting battery storage deployment. Work on the latter has already begun with an oversubscribed BESS tender.

The association estimates Argentina will reach 3.5 GW of cumulative solar capacity by 2028 and 4.3 GW in 2029, up from 1.93 GW as of May this year.

Brazil leads solar deployment in Latin America with a cumulative capacity exceeding 60 GW. SolarPower Europe said it expects the country to reach the 100 GW milestone by 2029.

While Brazil’s solar market growth has been supported by robust policies, strong domestic demand and expanding distributed generation, SolarPower Europe says challenges remain in grid access and permitting inconsistencies. It says grid connection procedures for large-scale solar should be made more transparent and accessible and calls for environmental licensing rules to be standardized across Brazilian states.

SolarPower Europe says Columbia’s cumulative solar capacity reached 2.3 GW in 2024, of which 90% comes from utility-scale projects. It predicts annual solar installations could surpass 2 GW by 2029, driven by improved regulation and increased familiarity with solar technologies. Colombia has also been hampered by transmission delays in recent times, despite 13 solar farms being added to the grid already this year.

Among the recommendations for Columbia’s solar market is targeting financing for small- and medium-scale solar, the reinforcement of power purchase agreement bankability and the promotion of battery energy storage technology.

In Mexico, solar growth is led by distributed generation, in particular rooftop solar, while utility-scale development faces grid access and policy challenges. SolarPower Europe says Mexico’s installed distributed solar capacity could reach 8 GW by 2030, equivalent to an average annual growth rate of 10% throughout the second half of the decade.

Mexico should prioritize regulatory certainties and accelerate the expansion of the transmission network, according to SolarPower Europe’s report. The association also called for clear energy targets to be set, adding that without such defined targets it will be difficult for Mexico to assess its growth and ensure policy alignment. Last month, new rules for self-consumption installations were introduced.

Peru has more than 730 MW of solar capacity in operation. SolarPower Europe says the country has immense untapped potential, with growth limited by slow permitting, regulatory uncertainty and weak transmission infrastructure. 

The report recommends Peru develops its ancillary service market, improves its transmission planning processes and establishes a comprehensive national energy planning system with a horizon to 2050. It adds that Peru is planning to reach 3 GW of cumulative solar capacity by the end of 2028.

Latin America has set a target of achieving a 70% share of electricity generated from renewables by 2030. Sonia Dunlop, CEO of the Global Solar Council, said that investment is the key to transforming Latin America’s solar promise into progress.

“By unlocking capital through blended finance, risk-mitigation tools and clearer market structures, we can scale solar where it’s needed most,” Dunlop said. “A better and prosperous future for countries across Latin America is not just possible with solar – it's powered by it.”