Chile is undoubtedly a leader in electricity generation from renewable sources. In 2022, 28% of electricity generation came from these sources, and their instantaneous share reached 68% last year—a level similar to that of Denmark. 

As of December 2022, there were 68 power generation projects under construction in Chile, 98% of which are renewable energy projects, representing an investment of more than US$5,000 million. In addition, there are many other projects in the planning or feasibility study phase.

Financing these projects is a major challenge, given the current state of the electricity market during this transition period, which is marked by transmission constraints, a complex regulatory and pricing environment, and financial strain for many generators. 

This issue was the focus of the panel on financing power generation projects held at the 6th Latin America Energy Summit on April 20 in Santiago, in which Gonzalo Ferrer, partner and director of Corporate Finance at FYNSA, participated. 

“We’ve conducted some studies on how renewable energy is financed,” he noted. “Today, about US$600,000 is being invested in green projects worldwide, and half of that goes to energy; in Chile, we have a gap compared to our projected goals,” he said, adding that “we need to increase funding severalfold; contributions from governments and financial structurers are needed”. In the current complex situation, “the solutions will come from the concession sector.”