Installed capacity of photovoltaic solar energy in Colombia: An analysis of economic incentives

Due to the abrupt drop in the worldwide energy generation levelized cost of non-conventionalrenewable technologies (in the case of the markets in the United States between 39 to 152 USD/MWhfor photovoltaic solar energy and between 26 to 50 USD/MWh for wind energy), the use of mechanismssuch as Feed in Tariff have been replaced by auctions, as a viable market mechanism to encourageinvestment on these generation sources. Based on Bass’s technology diffusion model, this paper analyzesthe impact of current incentives, considered in Law 1715 of 2014, on investment in photovoltaic solarenergy in Colombia. The main results of the large-scale project scenario show an installed capacity 1542MW of solar PV by 2030, which makes it the most profitable and the one with the highest growthpotential. The contribution in this paper is to survey the Colombian electricity market potential on theinclusion of solar PV

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