This is proof of the company's increased activity in Chile, the country pioneering the renewable revolution in Latin America, as just one week ago it hooked up the Marchigüe and La Esperanza (O'Higgins region) plants to the national power grid. What's more, these are the southernmost multi-MW projects in the world, with an output of 20.6 MMP, proving that solar energy can be profitable even in the higher latitudes of the planet.
These three new so-called PMGD plants (small to medium distributed generation projects between 3 and 9 MWp) will be connected to the Chilean distribution network, subject to the stabilised pricing regime, in the first half of the year. Two of the projects -Cabilsol and Panquehue- are in the commune of Cabildo, in the region of Valparaiso, while the Chimbarongo plant is also located in the O'Higgins region. These two regions border each other, and Valparaiso – the third most populous in Chile – has a prosperous economy, diversified in industries such as manufacturing, agriculture and tourism. The three plants, which are currently under construction, will have a capacity of 13.17 MWp.
CIFI is a financial institution with extensive experience in backing infrastructure and energy projects in Latin America and the Caribbean. With this, Grenergy has also achieved a milestone in the financial industry by securing investment from four banks, two of them local, for a renewable energy project under the stabilised pricing regime.
Chile, the renewables pioneer in LATAM
This transaction bolsters Grenergy's position in Chile, which along with Mexico is pioneering Latin America's renewables revolution following the liberalisation of the industry in some of the major economies in the region. In fact, the company won the latest tender held in Mexico in September, which is a project to build 30 MWp of solar power.
Grenergy is also present in Peru, where it has been awarded a wind energy project of 36 MWp, and in Colombia. However, Chile is where business is currently booming, as the government has set a target that by 2050 a total of 70% of energy used should come from renewable sources. In Chile, the company has the largest portfolio of PMGD projects in the market, accounting for approximately 200 MW between projects already completed, under construction and in development.
With these connected plants, Grenergy now has 27 MW of power in operation and will end the first half of this year with almost 40 MW connected to the grid. This is fully in keeping with Grenergy's 2016/2017 business plan, setting out to build 85 MW in Chile, a goal which at this rate should easily be achieved.
The group's projects in Chile are located within a 300-kilometre radius of the capital Santiago, an area that concentrates the main energy needs of the country. The fact that they are connected to the distribution network favours the stability of the electricity system, as it cuts losses and boost the efficiency of the system itself.
