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PV in Chile - A Guide to Opportunities

In partnership with PV Insider Latin America (10-11 September 2013), PV Insider has provided you with an exclusive overview on the opportunities for utility scale PV projects in Chile, alongside a comprehensive map of how developers are currently taking advantage of the opportunity.

The aim of this guide is to help you develop, finance and build commercially successful PV plants to secure your

share of the solar opportunity in Chile. In the following pages you’ll get a glimpse of the key topics which will be addressed in greater detail at the event.

To find out more about the only solar PV focused event in Chile, and to see the full line up of speakers and agenda, visit the website:

www.pv-insider.com/chile

10-11 September, Santiago, Chile

1st Latin America PV Conference & Exhibition

In association with:

PV Insider LATAM 2013

www.pv-insider.com/chile

Contents• Creating a profitable PV Plants

in a competitive energy market

• Electricity generation and transmission in Chile

• Solar Plants operational and in development

Download the full guidefor free at www.pv-insider.com/latam/en-content.php

To make sure you get a competitive edge in the race for operational plants, go to www.pv-insider.com/chile • 2

PV in Chile - A guide to opportunities

Creating profitable PV plants in a competitive energy market2012 and 2013 have been landmark years for the development of solar power in Latin America. Whilst the whole region is becoming an exciting market for photovoltaics (PV), the fastest growing and largest market for utility scale solar power is Chile. With nearly 100 developers now established in the country, the global PV community has quickly realised that Chile presents a solar opportunity like no other in the world.

A number of factors distinguish Chile as an exciting solar market. Firstly, Chile’s high global horizontal irradiance (GHI) areas correspond with the location of many of Chile’s prospective solar customers- the mining companies with high energy demands. Secondly, the national non- conventional renewable energy target (NCRE) incentivises solar development without subsidising it. In this guide you’ll discover:

�� Why Chile is an exciting opportunity for PV companies in 2013 �� The current market status and the triggers and inhibitors affecting solar growth�� How to take advantage of the most exciting and large-scale wealth solar opportunities up for grabs

PV Insider Latin America (10-11 September, Santiago) will bring together over 30 global and local PV experts to give you strategies to successfully develop, finance and build commercially PV plants and secure your share of the solar market in Chile.

For further information visit www.pv-insider.com/chile

Chile’s energy crisisWith a traditional reliance on fossil fuels and an insecure fuel supply, electricity prices for consumers in Chile are amongst the highest in the world. A lack of domestic production means Chile is vulnerable to international fluctuations and changes in the supply chain. In recent years drought has hit hydroelectric generation hard leading to widespread power cuts. In 2011 water accumulated in hydroelectric facilities fell by 32 per cent from 2010.

That being said, Sebastian Piñera the current president has recognised the need for Chile to increase its energy independence to not only reduce costs but to secure supply. In 2010 law 20257 was passed, requiring that 5% of energy produced by IPPs had to come from non-conventional renewable energy (NCRE) by 2015 and 10% by 2024. Non-compliance currently results in a fine of 0.4UTM per MW not-obtained from NCRE. Whilst modifications were made to increase the 10% obligation to 20% by 2024, it was soon realised that this was not achievable with the current grid and for the time being 10% by 2024 is the target.

At this point in a state’s renewable energy development, other countries might introduce a tender system for solar or a Feed in Tariff to stimulate the growth of solar power and renewable energy. However in Chile, this has not happened. Chile is one of the few markets in the world where PV needs to be competitive in a free market. The rise of PV plants being developed for the spot market as well as the increasing number of PPAs with mining companies suggests that PV is truly competitive.

There is however, concern as to how large the demand for PV solar from mining companies will be. With

Electricity consumption by origin Electricity consumption by sector

2010 Electricity consumption in Chile by origin and sector

Hydroelectricity 33%

Residential 16.3%

Mining 34.9%

Agriculture 2.2%

Industrial 23.9%

Others 10.4%

Commercial 12.3%

Natural gas 23%

Coal 35%

Oil 7%

Biomas 1% Wind 1%

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Where to find the biggest solar opportunity

Find out how PV Insider LATAM 2013 could turn your project from red to green by getting you a PPA and keeping your plant within budget.

Visit: www.pv-insider.com/chile

To make sure you get a competitive edge in the race for operational plants, go to www.pv-insider.com/chile • 5

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