Chile solar auction sets new record low for solar PV

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While tender schemes open up flexible and innovative design options (e.g. time blocks, storage components), the quality of the design and implementation is crucial to the success of competitive tenders. In Chile, an energy auction in November 2017 received the lowest price for solar in the region with 2.15 US cent/kWh after the tender process was amended in 2015 (Law 20,805) and a longer contract term (20 years) and different sized hourly blocks of energy supply (day, peak, night, 24 hours) were introduced.

IRENA Resource: Chile

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To achieve RE targets many countries require utilities to get specific amounts or percentages of their electricity sales from RE. These quota systems exist in many different variations worldwide and are often supported by tradable RE certificates. The RE support system in Chile—a solar PV leader in Latin America with 2.11 GW installed capacity in 2017—uses this approach alongside with auctions and other incentive mechanisms, and mandates severe penalties for non-compliance by utilities.

The Political Economy of Energy Subsidy Reform

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Untargeted price subsidies could easily be construed as one of the most expensive and most regressive fiscal policies in low- to middle-income countries. In fact, public expenditure on subsidies often exceeds the entirety of these countries’ social safety net expenditures many times over, making this a critical area of reform that can reap important benefits for social welfare and macroeconomic and fiscal stability.

Resources for Chile Laws and Regulations

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Chile’s RE incentive scheme is based on several different laws, including Law 20257 (Ley de Energías Renovables No Convencionales) as amended by Law 20701 (Procedimiento para Otogar Concesiones Eléctricas) and Law 20018 (Modifica el Marco Normativo del Sector Electrico), as amended by Law 20805 (Perfecciona el Sistema de Licitaciones de Suministro Eléctrico para Clientes Sujetos a Regulaciones de Precios).

Renewable energy in Latin America: Chile

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The Chilean renewables market has been the focus of much interest in recent years, as the industry reacts to the potential for growth and the offer of economic and political stability. As of December 2013, installed renewable capacity represented 6.3 per cent of the energy mix in Chile. By June 2016, this amount doubled, reaching 12.65 per cent of total electrical capacity (20,151 MW). The renewable energy market in Chile is ready to make the leap towards greater development.

The Effects of Privatization on Firms and on Social Welfare: The Chilean Case (2003)

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This study analyzes the Chilean privatization process. As it has been a wide-ranging undertaking, we perform an analysis of several industries. After a historic review of the privatization process, we examine the 37 Chilean state-owned enterprises (SOEs) that were privatized from 1981-2000 and for which pre-privatization and post-privatization financial, employment and production data are available.

Revisión de los mecanismos internacionales de licitación de suministro de energía eléctrica

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El presente documento corresponde al Informe  Final del estudio “Revisión de los mecanismos internacionales de licitación de suministro de energía eléctrica”, desarrollado por Systep Ingeniería y Diseños S.A.