The solar PV market in Central America is poised for substantial growth in the coming years, with each country making significant strides towards enhancing its renewable energy capacity.

• Panama is set to see robust growth in its solar PV sector in 2024 and beyond. The country’s strategic location and abundant PV incentives are likely to accelerate turning Panama into a PV paradise. Moreover, with the launch of a 500 MW Renewable and storage tender in 2024, Panama is the first market in the region to include energy storage in their renewable energy development. 
  
  
• ​El Salvador’s solar PV market is on the rise, with new projects slated for 2024. The government is actively supporting renewable energy through policy reforms and financial incentives. El Salvador has a 12.2 GW of PV potential, which could easily contribute to meeting the renewable target of ~700 MW set in the country’s Master Plan for Renewable Energy Development.​
  
  
• Guatemala is bracing for a notable expansion in its solar PV market in 2024 and beyond. Guatemala’s energy regulator, Comision Nacional de Energia Electrica, is aiming for the allocation of 235 MW of power generation in a recent round of auctions. The selected projects will be commissioned before 2030.​
  
  
• Nicaragua is also poised to develop its solar PV fleet in the coming years by commissioning dozens of MW of new solar PV in a series of strategic steps to develop its energy infrastructure.  ​
  
  
• Colombia’s solar PV market is expected to grow significantly in the coming years, mainly driven by government initiatives and favorable policies to promote renewable energy. Early this year, The Colombian Ministry of Mines and Energy allocated 4.4 GW of PV capacity in the “Reliability Charge” energy auction, showing the country’s determination in PV expansion.​
  
  

This market overview and section is quoted and based on the EUPD Research Global Energy Transition Matrix.​