Chile Solar Energy Market Size
|Base Year For Estimation||2022|
|Market Volume (2023)||6.95 gigawatt|
|Market Volume (2028)||17.89 gigawatt|
|CAGR (2023 - 2028)||20.80 %|
*Disclaimer: Major Players sorted in no particular order
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Chile Solar Energy Market Analysis
The Chile Solar Energy Market size in terms of installed base is expected to grow from 6.95 gigawatt in 2023 to 17.89 gigawatt by 2028, at a CAGR of 20.80% during the forecast period (2023-2028).
The Chile solar energy market is estimated to be at 6.95 gigawatts by the end of this year and is projected to reach 17.89 gigawatts in the next five years, registering a CAGR of over 20.8% during the forecast period.
- Over the medium term, increasing demand for solar energy and the declining cost of solar PV systems are expected to drive the Chile solar energy market demand during the forecast period.
- On the other hand, strong dependence on prevailing weather conditions is likely to restrain the market's growth over the forecast period.
- Nevertheless, the advancement in technology aiding the decrease in the cost of solar power plant construction is expected to render an opportunity for market growth over the forecast period.
Chile Solar Energy Market Trends
The Utility-Scale Solar Energy to Dominate the Chile Solar Energy Market
- The installed solar energy capacity in total power generation in 2013 stood at 0.06%, increasing to 9.8% in 2021. As of 2022, the solar power installed capacity in the country was around 6.250 GW. Additionally, according to a study by the Chilean Association of Power Generators, 2030, solar power will likely reach 30% of total installed capacity, becoming the country's first source of electrical energy.
- The Chilean government and the country's four largest electric utilities companies, AES Gener, Colbun, Enel, and Engie, reached a voluntary agreement to phase out their coal units, which will end no later than 2040. The phasing out of coal units will likely be carried out in the schedule, and it covers phasing out of the first 1,047 MW of the eight oldest plants by 2024.
- The removal of coal power plants is expected to create additional demand for the installation of new power capacity, which in turn is expected to drive the demand for solar power plants across the country during the forecast period.
- Furthermore, private investments are also steering the market in the country. For example, in 2023, Enel Green Power Chile, a subsidiary of Enel Chile, commenced construction of its new El Manzano solar power park in Tiltil, which will be the company's first large-scale photovoltaic solar power plant in the Metropolitan Region. The new hybrid plant has a net potential of around 99 MW of solar power and a battery system for energy storage.
- The decreasing cost of solar modules, clubbed with the phase-out of coal power plants and supportive government policies, will likely foster the growth of solar power in the country.
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Increasing Solar Energy Demand to Drive the Market
- According to National Energy Commission (CNE) statistics, as of June 2023, the total installed solar photovoltaic (PV) energy generation capacity in Chile amounted to nearly 7.3 GW. At the same point in time, wind energy is the second most extensive renewable energy source in the country, with a capacity of around 4.2 GW of electricity. Solar PV technology is expected to account for the largest share of new renewable capacity addition in the coming years.
- 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 dropped exponentially.
- Due to the government's favorable policy, the solar power sector in the country grew from almost non-existent in 2012 to over 6.2 GW by the end of 2022.
- In 2022, Colbún SA, the Chile-based investor, submitted an environmental assessment for a 422 MW solar PV plus storage project it plans to build in Chile. The plans include a five-hour, 240 MW battery system, which would be among the largest energy storage installations in the country.
- Moreover, in 2023, the first phase of Repsol Ibereólica Renovables Chile's initial joint solar PV project came online and now produces electricity for the grid. The second phase is still under construction. The installed capacity will reach 596MW once the whole project is completed.
- The increasing solar energy demand will likely boost the solar energy capacity across the country over the forecast period.
Chile Solar Energy Industry Overview
The Chile solar energy market is fragmented. Some key players in this market (in no particular order) include Acciona, S.A, JinkoSolar Holding Co., Ltd., Trina Solar Limited, Enel Green Power S.p.A, and First Solar, Inc.
Chile Solar 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 Solar Energy Market News
- May 2023: Akuo and Atlantica Sustainable Infrastructure announced the successful closure of financing and the commencement of construction for a portfolio of nine photovoltaic power plants in Chile. The portfolio, with a total capacity of 80 MWp, will be in the south of Santiago de Chile, in the Regions of Maule, Ñuble, Araucanía, and Biobío. Upon completion, the power plants will likely deliver electricity to about 60,000 households and support the country in diversifying its electricity mix, which currently laboriously relies on fossil fuels.
- February 2022: Czech renewable energy company signed an agreement with Black Rock to develop solar PV projects in Chile. The company will likely provide operation and maintenance services for the projects.
Chile Solar 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 Solar Energy Installed Capacity and Forecast, till 2028
4.3 Renewable Energy Mix, 2022
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Key Project Information
4.6.1 Existing Projects
4.6.2 Planned and Upcoming Projects
4.7 Market Dynamics
22.214.171.124 Increasing Solar Energy Demand
126.96.36.199 Declining Cost of Solar PV Systems
188.8.131.52 Strong Dependence on Prevailing Weather Condition
4.8 Supply Chain Analysis
4.9 PESTLE Analysis
5. MARKET SEGMENTATION BY DEPLOYMENT
5.1.2 Distributed Generation
5.2.1 Solar Photovoltaic (PV)
5.2.2 Concentrated Solar Power
6. COMPETITIVE LANDSCAPE
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 Canadian Solar Inc.
6.3.2 Acciona, S.A
6.3.3 Mainstream Renewable Power
6.3.4 JinkoSolar Holding Co., Ltd.
6.3.5 Trina Solar Limited
6.3.6 Enel Green Power S.p.A
6.3.7 First Solar, Inc.
6.3.8 STI Norland
6.3.9 SunEdison, Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 The Advancement in Technology Aiding the Decrease in the Cost of Solar Power Plant Construction
Chile Solar Energy Market Research FAQs
How big is the Chile Solar Energy Market?
The Chile Solar Energy Market size is expected to reach 6.95 gigawatt in 2023 and grow at a CAGR of 20.80% to reach 17.89 gigawatt by 2028.
What is the current Chile Solar Energy Market size?
In 2023, the Chile Solar Energy Market size is expected to reach 6.95 gigawatt.
Who are the key players in Chile Solar Energy Market?
Acciona, S.A, JinkoSolar Holding Co., Ltd, Trina Solar Limited, Enel Green Power S.p.A and First Solar, Inc. are the major companies operating in the Chile Solar Energy Market.
Solar Energy in Chile Industry Report
Statistics for the 2023 Solar Energy in Chile market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Solar Energy in Chile analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.