While you would think that having a huge amount of solar energy would be a great thing, its actually the opposite for the Chilean government and investors.
Renewable energy is the future, and while most countries around the world are still striving to get their projects going full steam ahead, Chile is one country that’s showing the way in the production of this type of energy through its solar farms.
Now, while the success of renewable energy development plans is always a good thing, Chile is facing a problem of excess, even sending the prices for its electricity on a downward spiral. In fact, the generation of solar energy in the country is so high, that players are even forced to sell the excess electricity for no price at all. While this situation may seem like haven to customers, the imbalance could pose problems with regards to future investments. After all, it may be about the environment, but it’s still business.
The problem of disproportionate generation of electricity in Chile has its reasons, one of the main ones being the absence of enough means of transmission between the northern and the central grids in the country. This means that the distribution of electricity between these two main grids remains imbalanced, thus disallowing a grid that may have extra electricity from transferring the power to the one that is falling short. While the lack of proper infrastructure remains the main cause behind this issue, the number of solar farms are threatening to compound the problems too.
When it comes to solar energy, Chile already has 29 solar farms that are generating energy in excess of what is required in the northern grid, and since there are no efficient transmission or storage systems available to transfer this excess electricity to other grids, companies are being forced to give away this electricity for free.
Sounds amazing? Well, free electricity may seem like a great thing, but industry experts point out that the lack of profits is sure to scare away potential investors in the renewable energy segment, a repercussion that is surely set to play out in the long run if one studies the current circumstances.
Moreover, while the energy from the current number of farms is being distributed for free already, there are already plans underway for 15 more farms in the country.
Enough transmission lines as well as enhanced storage facilities are long-term answers to the problem, although for now, some consumers in Chile are enjoying free electricity, and we all know how good that sounds.