What happens when you have too much solar energy? Well, while some countries would rather let it go to waste, that is not the case in Chile. In fact, the country has too much solar energy they have decided to give it away for free. All this is thanks to the rapid expansion of the solar power industry. There are certain parts of the country where the prices were quoted at zero for more than a hundred days. It is expected that this will exceed the record that was set last year for 192 days, based on the statistics available from the central grid operator.
Of course consumers are looking forward to situations like these; it is a godsend to them. However, on the other hand the companies who run power plants find it rough, because they struggle to generate enough revenue, and their developers have to seek financing for new facilities.
The increase in energy demand in the country has further spiraled in the past as a result of the boom in mining production, and the economic growth. As a result of this, there are 15 planned solar farms, which will enter the central grid to support the 29 plants that are already in operation. As you head north into the mining district, there are so many more such plants that have already been built.
According to one of the CEOs, the investors are actually losing a lot of money. The economic growth has slowed down because of the stagnation of the copper output. It is also important to mention that there is a global glut going on, while the prices of energy in the country are on a downward spiral.
Since the surplus in energy cannot be transferred to other parts of the country, it is only fair that they distribute it for free.