Chile Renewable Energy Market Size
|CAGR:||> 9 %|
*Disclaimer: Major Players sorted in no particular order
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Chile Renewable Energy Market Analysis
The Chile Renewable Energy Market is expected to register a CAGR of more than 9% during the forecast period.
The market was negatively impacted by COVID-19. Presently the market has now reached pre-pandemic levels.
- During the last decade, the government has started emphasizing ways to capitalize on other domestic resources, namely strong coastal winds, strong solar irradiation, and tectonic plate conditions that have made geothermal power generation viable in some areas. Additionally, the declining cost of solar modules and wind turbines is expected to drive the market.
- However, technological limitation such as strong dependence on prevailing weather conditions is likely to restrain the market's growth over the forecast period.
- The government's effort to reduce carbon emissions by shutting down thermal power generation sources and increasing renewable generation is likely to provide an opportunity for market growth.
Chile Renewable Energy Industry Segmentation
Renewable energy comes from natural sources that replace themselves more quickly than they are used up. Examples of such sources that are continuously replenished are the sun and the wind. There are many different types of renewable energy available to us.
The Chile Renewable Energy Market is segmented by Types (Hydropower, Wind, Solar, and Others). By types, the market is segmented into Hydropower, Wind, Solar, and Other. For each segment, the market sizing and forecasts have been done on the installed capacity (GW).
Chile Renewable Energy Market Trends
This section covers the major market trends shaping the Chile Renewable Energy Market according to our research experts:
Solar Energy is Likely Dominate the Market
- The installed solar capacity grew from 2 MW in 2012 to 4468 MW in 2021. Furthermore, the installed capacity of solar energy accounted for 3205 MW in 2020, with an annual growth rate of 39.4 % compared to 2021. Additionally, according to a study by the Chilean Association of Power Generators, by 2030, solar power is expected to reach 30% of total installed capacity, becoming the country's first source of electrical energy.
- The increasing solar capacity and development of new projects are expected to drive the solar energy market in the forecast period. In October 2022, Engie Energia Chile SA, an electric utility business, said it had received environmental approval to expand a modest current solar farm in northern Chile by 300 MW and add energy storage. The clearance allows the business to install the additional capacity close to the 6.24-MWp Pampa Camarones solar farm in the Arica y Parinacota region and connect around 180 MW of batteries for five hours of storage.
- Moreover, The shutdown of the coal power plants is expected to create additional demand for the installation of new capacity. The decreasing cost of solar modules clubbed with the phase-out of coal power plants, and supportive government policies are likely to foster the growth of solar power, which, in turn, is expected to drive the renewable market across the country during the forecast period.
- The decreasing cost of solar modules, clubbed with the phase-out of coal power plants and supportive government policies, are likely to foster the growth of solar power in the country.
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Increasing Demand for Renewable Energy to Drive the Marekt
- The renewable energy sector is mainly driven by the growth of the solar and wind power sector. During the coming years, solar PV technology is expected to account for the largest share in new renewable capacity addition. In 2021, the total renewable energy capacity of chile accounted for 14890 MW, with an annual growth rate of 18%.
- The solar industry has cut costs dramatically in the past few years through economies of scale. As the market was flooded with equipment, prices plummeted, and the cost of solar panels has been dropping exponentially.
- Along with the expansion of renewables, the country has made progress in eliminating the use of fossil fuels. Five of Chile's coal-fired power stations had shuttered by 2021, with four more set to close in 2022. By 2025, the total number of closures should be 15, plus three converted units, representing a 65% improvement.
- According to CNE, the national energy agency, there were 166 renewable energy projects under development in Chile at the end of last year, totaling 4,473 megawatts (MW) of power. These projects represent about half of the country's existing generation (8,695 MW) and are expected to be completed by 2023. Thus, with the development of new projects in the renewable energy sector is expected to drive the market by increasing the green energy capacity.
- Furthermore, the declining cost of a wind turbine is likely to boost the installation of renewable energy capacity across the country over the forecast period.
Chile Renewable Energy Industry Overview
The Chile Renewable Energy Market is fragmented. The key players in this market (not in particular order) include Acciona, S.A., JinkoSolar Holding Co., Ltd., Trina Solar Limited, Enel Green Power S.p.A, and First Solar, Inc.
Chile Renewable Energy Market Leaders
JinkoSolar Holding Co., Ltd.
Trina Solar Limited
Enel Green Power S.p.A
First Solar, Inc.
*Disclaimer: Major Players sorted in no particular order
Chile Renewable Energy Market News
- September 2022: Enel Chile got authorization from the National Electric Coordinator to commence commercial operation of its Sol de Lila solar power facility, which has an installed capacity of 161 MW, through its renewable energy development company, Enel Green Power Chile. The park, located in the Atacama Desert and the Antofagasta Region, will start injecting renewable energy into the National Electric System.
- February 2022: Solek Group signed a framework agreement to construct solar projects in Chile with its Chilean affiliate, Solek Latam Holding. Solek will be able to develop up to 28 solar (PV) power plant projects with a combined capacity of up to 200 MW under the terms of the agreement.
Chile Renewable Energy Market Report - Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Renewable Installed Capacity and Forecast in GW, till 2027
4.3 Power Generation Mix,
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by the Leading Players
6.3 Company Profiles
6.3.1 Vestas Wind Systems A/S
6.3.2 Nordex SE
6.3.3 Acciona, S.A
6.3.4 Mainstream Renewable Power
6.3.5 JinkoSolar Holding Co., Ltd.
6.3.6 Trina Solar Limited
6.3.7 Enel Green Power S.p.A
6.3.8 First Solar, Inc.
6.3.9 STI Norland
6.3.10 SunEdison, Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Chile Renewable Energy Market Research FAQs
What is the study period of this market?
The Chile Renewable Energy Market market is studied from 2019 - 2027.
What is the growth rate of Chile Renewable Energy Market?
The Chile Renewable Energy Market is growing at a CAGR of >9% over the next 5 years.
Who are the key players in Chile Renewable Energy Market?
Acciona, S.A, JinkoSolar Holding Co., Ltd., Trina Solar Limited, Enel Green Power S.p.A, First Solar, Inc. are the major companies operating in Chile Renewable Energy Market.
Chile Renewable Energy Industry Report
Statistics for the 2023 Chile Renewable Energy market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Chile Renewable Energy analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.