Abstract
Subject The rapid expansion of renewable energy in Chile. Significance A tender for power purchase agreements (PPAs) with Chile's main distributors, scheduled for late July, will be an important test not only of future electricity prices but also of the ability of the country's non-conventional renewable energy (NCRE) sector to maintain its rapid growth in the face of cheaper conventional fuels. NCREs offer many immediate advantages by way of supply diversification -- in a country that has to import almost all its fossil fuels -- and mitigation of greenhouse gas emissions. Impacts Government studies suggest that, by 2035, NCREs could be producing 40% of Chile's electricity. NCRE projects are boosting competition in Chile's electricity industry, previously dominated by a handful of players. Cheaper electricity is helping to cushion export industries, including mining, against lower commodity prices.
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