The Solar Energy Market in Argentina share is expected to increase by 53.73 terawatt-hour units from 2021 to 2026 with the CAGR of 70.64% due to increasing demand for electricity.
Estimated year-on-year growth rate: 82.21%
Key Trend: Increasing investments in renewable energy
Argentina boasts some of Latin America's most plentiful renewable energy resources, including unimpeded and strong winds in southern Patagonia, year-round sunshine in the far northwest, and hydropower and biomass provided by rivers and huge agricultural and cattle farms. Argentina's government declared 2017 to be the "Year of Renewable Energy," with the purpose of diversifying the country's energy mix, reducing dependency on imported fossil fuels, and reducing carbon emissions. As a result of the methodical approach, private sector investments and innovation are likely to increase, supporting market growth throughout the projection period.
Key Challenge: Intermittency in solar power generation
Solar PV production is not constant and is affected by a number of factors, including the amount of shade, panel efficiency, and solar irradiation, which varies throughout the day. As a result, having an entirely solar-powered power supply is not feasible. Furthermore, if the solar panels are not producing at their maximum capacity, a backup power system such as a battery, wind power, a hybrid generator, or grid power is required, which necessitates further investment. Furthermore, rainy and gloomy weather has a negative impact on solar electricity generation. Despite the fact that solar power technology is constantly improving, the conversion rate still cannot match that of fossil fuels, which is predicted to provide a hurdle to the solar energy industry's growth.