Chile is stably becoming a new world’s development center for solar industry. A number of solar power plants totaling 1.3 billion U.S. dollars are under development. Though the initial costs are higher, instability of power supply in Chile and sustainability of solar electricity together support the solar industry in Chile.
There are 7 developing projects in Chile. A Spanish company, Solarpark has received certifications of environmental assessment for two solar projects in separate areas. While other applications are still pending, it is expected that the completion of these projects will be no later than 2020.
Though capital investment is about 3 times more than traditional power station, with decreased costs of solar power over time and Chile’s electricity being the highest among Latin American countries, it is possible to for the solar industry in Chile to achieve competitive advantage and reach grid parity by 2015. Because solar power plants have infinite source of energy, material costs are practically reduced to zero. Solar power plants in Chile are mostly developed by joint efforts with mining companies. Many traditional power plants are willing to take part in renewable energy to bring down the overall costs.