Monday, June 6, 2016
Chile is producing so much solar power, it's giving it away for free
Market forces often produce strange quirks in the economic system, like the one we’re seeing in Chile this year: the country is producing so much solar power that it’s being sold for… nothing at all.
While it’s incredibly encouraging to see so much expansion in the country’s renewable energy output, this huge amount of supply does actually cause problems for the companies looking to invest in solar energy.
Solar capacity on Chile’s central power grid (called SIC or Sistema Interconectado Central) has more than quadrupled over the past three years to 770 megawatts – good news for the environment and customers paying their electricity bills.