Abstract

New markets for photovoltaics are being created in emerging economies where rich solar resources can produce solar electricity at affordable costs. A case in point is Chile, a country with great solar resources planning renewable energy deployment to address the needs of an expanding mining industry and a growing economy, while preserving the environment. The expansion of metal mining and smelting operations is constrained by the cost of electricity and the unavailability of water in northern Chile, offering an opportune synergy between photovoltaics and mining. Local estimates put the potential for solar electricity in the north interconnect at more than 200 GW, those of geothermal in the north and central interconnects from 3-16 GW, wind in the central interconnect from 5-40 GW, and small hydro and biomass in the south at 0.3 and 0.4 GW, correspondingly. These resources can supply not only the needs for sustainable development in Chile but can also produce electricity for neighboring countries. This paper examines the potential for immediate PV penetration in Chile's main electricity grids (SING and SIC) and options (i.e., curtailment, PV and wind combinations) that can increase such penetration.