Mexico could be world's 7th largest solar market by 2021

Mexico could potentially be the world's seventh-largest photovoltaic (PV) market by 2021, according to the SolarPower Europe 2017 global outlook report.

The report forecasts high and low installed capacity scenarios to 2021, and which places Mexico as having the potential to occupy seventh place worldwide, with up to 14.1GW installed, behind Australia, Germany, Japan, the US, India and China. Under such a high-forecast scenario, Brazil would occupy 10th place by 2021, with 9.9GW.

No other Latin American country appears in the top 20 projected solar markets by 2021.

Also read: Mexico brimming with solar growth potential

Across the region, Mexico and Chile took the biggest strides in solar growth in 2016, although both markets still remain small in terms of installed capacity at a global level, according to the report.

Mexico awarded 1GW of solar power capacity at an average power-purchase agreement (PPA) price of $40.50/MWh in a single tender in 2016, while Chile added 821MW and awarded a record low US$29.1/MWh PPA price. Chile's installed PV capacity was 1,524MW as of May 2017, according to the national energy commission.

In May, environmental authorities in northern Chile's Arica region (XV) approved the US$200mn, 93.2MW ALWAsolar photovoltaic project planned by Celeo Energía Chile, a subsidiary of Spain's Elecnor.

Also read: Can Mexico become a solar manufacturing hub?

The Americas is the third-largest region in the world in terms of installed solar capacity, with 45.9GW, representing 15% of global installed capacity. Asia-Pacific was the world's largest solar-power region in the world in 2016, with 147.2GW of capacity, followed by Europe, with 104.3GW.

Global solar capacity grew by 50%, or 76.6GW, to more than 300GW in 2016, while total capacity is expected to hit 700GW by 2021, according to the report.

The report expects total global installed PV capacity to exceed 400GW in 2018, 500GW in 2019, 600GW in 2020 and 700GW in 2021, as its low cost has sparked huge interest for this clean and flexible technology in many countries.

This pace of growth is expected to slow in the coming years however, with added capacity this year expected to be just 5% above 2016 levels.

"The years 2019 and 2020 will be characterized by further growth, though somewhat slower: 9% in 2018 and 6%the following year, with a number of emerging markets beginning to digest the first wave of large solar additions," the report states.

Also read: Will 2018 be 'take-off year' for solar in Mexico?