• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
solar power

In Chile, Solar Power Outgrows the Grid, So They’re Giving it Away

By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
June 4, 2016, 4:47 PM ET
Photograph by Getty Images

In a cautionary tale illustrating the complex challenges of integrating renewable energy into the electrical grid, spot electricity prices in Chile have dropped to zero in some places on 113 days so far this year. Solar production in the country has expanded rapidly in recent years, but a lack of transmission lines is leaving the energy stranded where it’s not needed, forcing prices down.

Get Data Sheet, Fortune’s technology newsletter.

Bloomberg reports that one basic problem is the division of the country into separate central and northern grids, which are currently not interconnected at all. The highest concentration of solar installations was built in the north, where the country’s copper mines were expected to drive energy demand, but are now facing a slowdown.

The Chilean government is working to connect the two regions so the excess energy can move, as well as to improve connections within grid zones. But in the meantime, Bloomberg says solar investors are losing money, and the chaos could cast a pall on funding for future projects.

For more on energy, watch our video.

Chile is Latin America’s biggest producer of renewable energy, with solar capacity quadrupling since 2013 to 770 megawatts. New projects funded before the current slump will continue to drive up capacity over the next year, and number of days of ‘free electricity’ this year—for those who happen to be in the right place— is on track to beat last years’ total of 192 days by a wide margin.

But between overcapacity and the mining slump, those projects could be the last for some time.

About the Author
By David Z. Morris
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Most Popular

placeholder alt text
Economy
'I just don't have a good feeling about this': Top economist Claudia Sahm says the economy quietly shifted and everyone's now looking at the wrong alarm
By Eleanor PringleJanuary 31, 2026
3 days ago
placeholder alt text
Future of Work
Ford CEO has 5,000 open mechanic jobs with up to 6-figure salaries from the shortage of manually skilled workers: 'We are in trouble in our country'
By Marco Quiroz-GutierrezJanuary 31, 2026
3 days ago
placeholder alt text
Success
In 2026, many employers are ditching merit-based pay bumps in favor of ‘peanut butter raises’
By Emma BurleighFebruary 2, 2026
22 hours ago
placeholder alt text
Big Tech
The Chan Zuckerberg Initiative cut 70 jobs as the Meta CEO’s philanthropy goes all in on mission to 'cure or prevent all disease'
By Sydney LakeFebruary 1, 2026
2 days ago
placeholder alt text
Personal Finance
Current price of silver as of Monday, February 2, 2026
By Joseph HostetlerFebruary 2, 2026
1 day ago
placeholder alt text
Economy
Musk’s fantasy for a future where work is optional just got more real: U.K. minister calls for universal basic income to cushion AI-related job losses
By Sasha RogelbergFebruary 1, 2026
2 days ago

Latest in

Cryptostablecoins
Famed startup incubator Y Combinator to let founders receive funds in stablecoins
By Ben WeissFebruary 3, 2026
4 minutes ago
EuropeLetter from London
Oracle billionaire Larry Ellison’s next big bet: Redefining how long–and how well–we live
By Kamal AhmedFebruary 3, 2026
10 minutes ago
denmark
Workplace Culturegender issues
One of the most generous welfare states in the world is no match for the ‘motherhood penalty’
By Alexandra Killewald and The ConversationFebruary 3, 2026
29 minutes ago
Personal Financegold prices
Current price of gold as of February 3, 2026
By Danny BakstFebruary 3, 2026
29 minutes ago
The E*TRADE logo on a green layered background.
Personal FinanceCertificates of Deposit (CDs)
E*TRADE CD rates 2026
By Joseph HostetlerFebruary 3, 2026
29 minutes ago
trump
PoliticsWorld Cup
German FA slaps down proposal to boycott World Cup as Trump rebuke: ‘debates on sports policy should be conducted internally and not in public’
By Ciaran Fahey and The Associated PressFebruary 3, 2026
38 minutes ago