According to estimate by Deutsche Bank, the electricity produced by solar power stations became the cheapest power source with the cost at around $65-68 per megawatt-hour through the energy trading in October in Chile.
At the same time, the cost of energy generated by wind farms was at around $79 per megawatt-hour, which is also significantly lower than $85 for each megawatt-hour produced by coal power station.
Chile is an attractive market for solar and wind energy development because of its stretched coastline and high number of sunny days a year. Energy development is facing certain challenges, related to lack of proper power lines. However bank’s report says that solar panel market in Chile was driving local economy seriously through construction of solar power stations by small companies. Growing power generation is also expected to boost the development of energy infrastructure.
According to bank’s forecast, Chile will launch around 1GW of solar capacities by the end of 2015 and additional 500MW and 400MW in 2016 and 2017 correspondingly.