Chile has officially debunked the argument that coal is cheaper than solar.
Solarpack Corp. Technologica, a Spanish developer, won contracts to sell solar power for $29.10 per megawatt-hour at an energy auction in August, the lowest price ever. Not only does this beat out the deal in Dubai from last May, it went for almost half the price of coal at the same event. Chilean solar power is now at one of the lowest rates for any kind of electricity anywhere, according to Solarpack General Director Inigo Malo de Molina.
“Solar energy technology has evolved and proved it is competitive,” Molina told Bloomberg in a telephone interview from Santiago. “Prices for electricity generation have changed drastically in the last years. Solar energy in Chile is now the cheapest in the market.”
From Energy Crisis to Energy Abundance
It’s an amazing turn-around, given the county’s recent energy woes. Just five years ago, Chile’s energy prices were among the highest in Latin America. A few monopolistic utility companies dominated the sector, and Argentina had stopped selling natural gas to its neighbor. Facing the risk of blackouts, the private sector planned to open more coal-burning power plants and build hydroelectric dams that would have flooded Patagonia.