CHILE BETS ON RENEWABLE ENERGIES
Clean energy is leading the energy sector investment in the country
Renewable energy in Chile is in a transition process. Clean energy is leading the energy sector investment in the country. 900MW renewable energy will be installed during 2018, which will be added to a 5,400MW total. This represents the 20% of the generation matrix.
Some regulation changes, regulated customers becoming free customers or the recent fusion of both of the main electrical systems, are contributing to this process. This will be a big milestone in the Chilean renewable energy industry.
The customer migration opens a big opportunity for the generation companies. Many of this companies are renewable companies. Last distribution companies auctions in 2016 and 2017 were closed with an average price of 47,6 USD and 32,5 USD respectively, with a start of the provision expected in 2021 and 2024. This means regulated customers are going to pay prices above this prices in the short and middle term. This is why more than 150 customers have already changed to free customers, negotiating with the power company directly instead of buy energy from the distribution market.
The recent announcement of some of the main thermoelectric units of the country is contributing to the objective of a 100% renewable country for 2040, as the current government already confirmed. This agreement with the main power generator companies is fructifying in long-term renewable energy sell agreements.
The excellent quality of the natural resources in Chile, as well as the commitment of the public and private sector, will help position the country as leader of the renewable industry in the Southern Cone.