BUENOS AIRES, Argentina, Aug. 1, 2013 /PRNewswire/ -- The Andean region's emerging renewable energy market has huge unexploited potential and the clear intention of regional governments to reduce dependence on fossil fuels for electricity generation will spur market growth. The development of wind and solar photovoltaic (PV) systems driven by the implementation of supporting policies will propel market expansion over the next couple of years.
New analysis from Frost & Sullivan (http://www.energy.frost.com), Analysis of the Andean Region's Renewable Energy Market, finds that the market earned revenues of $289.2 million in 2012 and estimates this to reach $743.6 million in 2017. The study covers Colombia, Ecuador and Peru.
The availability of primary sources for the generation of renewable energy – be it solar, wind, biomass, hydrological or geothermal – facilitates the design of renewable energy strategy plans in the Andean region. Colombia, Ecuador, and Peru have unexploited areas with wind speeds of over 7 metre per second (m/s) reliable for wind power generation and a yearly average solar irradiation of over 2.2 kilowatt hour (KWh) per square meter. In addition, extensive sugar production promotes biomass generation and cogeneration.
"With several projects in Peru and Ecuador under construction or in the advanced stages of planning, renewable energy generation in the short term will double or triple from initial volumes," said Frost & Sullivan Energy and Environmental Research Analyst Gustavo Stainoh. "Since these countries have little experience in this industry, the following years will determine the effectiveness of these short-term strategies and whether a redesign of supportive policies will be required."
In Colombia, contract offers are qualified according to power generation prices and reliability and therefore thermal and hydropower plants have an advantage over renewables. The lack of appropriate guidelines and regulatory mechanisms curbs new projects.
Several delays in the commissioning of public bidding in Peru, and the high price of solar PV generation in Ecuador, have stalled market revenues. The result of a third public competitive bidding in Peru will be decisive for the renewable energy market in the coming years.
"It will also be necessary to analyze results and private investor reaction to policies to move toward a more renewable energy matrix and ensure sustained growth," revealed Stainoh. "Favorable laws for cogeneration will be the starting point for the long-term development of renewable energy."
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Analysis of the Andean Region's Renewable Energy Market is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan's related research services include: Andean Region Wind Turbine Market, Southern Cone Wind Turbine Market, Southern Cone Solar Market, and Brazilian Wind Power Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Analysis of the Andean Region's Renewable Energy Market
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