[LINK] "Solar Energy Is Cheapest Source of Power in Chile, Deutsche Says"

[rfmcdonald]

Bloomberg's Vanessa Dezem notes the profitability of solar energy in the context of Chile.

Solar power is now the cheapest source of electricity in Chile, according to Deutsche Bank AG.

That conclusion is based on the results of an energy auction in October when renewable projects offered the lowest prices and won contracts to supply 1,200 gigawatt-hours of power, Deutsche Bank analyst Vishal Shah said in a report Tuesday.

That may lead to more than 1 gigawatt of new solar capacity installed in Chile this year, Shah said. It will help the country reach a target set in 2014 by Chile’s government of having 45 percent of its installed electric capacity powered by renewable sources.

Three solar farms offered to sell power for $65 to $68 a megawatt-hour in the auction, Shah said. Two wind farms bid $79 a megawatt-hour, and a solar-thermal plant with storage offered power at $97. Coal power was offered for $85 in the same event.