Chile on path to new auctions, transmission lines

Written on 23 Feb 2017

Osborne Clarke are proud sponsors of inspiratia’s riskWatch which assesses the risk of investing in renewables energy projects in the most active markets globally. Please see below an extract from inspiratia’s latest report on the renewables market in Chile.

Chile has registered a tremendous increase in renewables activity over the last two years, thanks in large part to its structured energy policy. The country’s latest energy auction is expected to attract developers and investors from around the world, while it is hoped that a new transmission tender will go some way to bridging critical gaps in Chile’s national electricity network. Looking ahead to 2017, however, the country’s upcoming general election may increase the renewables market’s political risk. Chile’s riskWatch decreased from 65.87% in Q4 2016 to 65.36% in Q1 2017, ranking 16th globally with a negative 12-month outlook.

2017 promises to be a busy year for renewable energy in Chile, with two auctions taking place for energy and transmission contracts. The country’s last three energy tenders, in 2016, 2015 and 2013, achieved significant reductions in average winning bid prices, and the upcoming tender will most likely result in average bids below US$40/MWh. If the results of 2016 are repeated, renewables will make up around 50% of the awarded certificates, and onshore wind is set to be amongst the most successful sectors.

So what are the other policy and regulation, project drivers, macroeconomics and politics driving change in Chile? Please contact Osborne Clarke’s expert below to request a full copy of the inspiratia report.

About inspiratia: inspiratia provides real-time data, forward-looking analysis, and timely market news relating to global infrastructure and renewables sectors.