In recent years, Chile has invested so much in solar energy that it now produces so much solar energy that it does not know what to do with it. A new report reveals that solar electricity prices have fallen to zero for 113 days this year, with many more expected before the end of the year.
Something similar is happening in Germany, in fact on May 8 it produced so much renewable energy that it paid people to use electricity.
Free solar power is a huge boon for Chileans, but analysts are worried about how it will affect the market as investors and solar power plant owners could lose money.
The installed solar capacity in Chile has quadrupled since 2013. There are currently 29 solar farms in operation, and 15 more are planned or under construction.
But the power grid in Chile has two grids that are not connected. The infrastructure in some areas is poor, so there are places where the grids simply cannot transmit as much electricity. So there are regions that have more electricity than necessary.
Related: Energy in the future will be free.
When infrastructure does not keep pace with solar installations, these problems arise in the grid. The government has made the energy sector a priority, but planning has focused on the short term when long term plans for the necessary infrastructure are needed.
More information: bloomberg.com