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

As of December 2022, there were 68 electricity generation projects under construction in Chile, 98% of which are renewable energy projects, with an investment of more than US$5 billion. To this must be added many other projects in the study or feasibility phase.

Financing these projects is a major challenge, given the characteristics of the electricity market at this time of transition, with transmission restrictions, a complex tariff and price environment and a situation of financial stress for many generators. 

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

"We have done some studies on how renewables are financed," he said. "Today some US$600,000 in green projects are financed in the world and half of it is energy; in Chile we have a gap with respect to the expected goals," he said, adding that. "we need to multiply financing several times over, contributions from states and structurers are needed.". In the current complex moment, "the alternatives will come from the concession world".