Solar and wind energy are lower cost than fossil fuels in Chile, reports Deutsche Bank, with solar the cheapest source of electricity generation.
In an industry note, Deutsche Bank writes that in the country’s last tender round, held on October 23, renewables were awarded 100% of the contracts to supply 1,200 GWh of energy to Chile’s unregulated customers (i.e. those with a demand for capacity of more than 2 MW). Compared to coal power, which offered up rates of US$85/MWh for electricity generation, three solar PV farms offered between $65 and $68/MWh
I have not been able to ascertain whether these generation costs for solar as noted by DB are without any incentives factored in. If they are, it is indeed an important moment for the growth of renewables in Chile
Source: PV Magazine