Late last week Spain’s Solarpack won a bid in Chile for a 120 megawatt solar farm to produce 280 gigawatt hours of solar power annually at a cost of $29.10 per megawatt hour. The new bid is the lowest price ever bid for a solar project—even lower than the $29.90 cents per megawatt hour bid for a project in Dubai—and is unsubsidized, making solar power well lower than the cost of coal.
“That’s the lowest price on record for electricity from sunshine, surpassing a deal in Dubai in May. It’s the cheapest to date for any kind of renewable energy, and was almost half the price of coal power sold in the same event,” wrote Bloomberg’s Vanessa Dezem. “According to Solarpack General Director Inigo Malo de Molina, it’s one of the lowest rates ever for any kind of electricity, anywhere.”
“With this auction, we can confirm that we are on the right path,” said Chile’s President Michelle Bachelet, as reported by Bloomberg. "This is good news for Chileans’ pockets, for the environment and also for the economy.”
The solar farm, Granja Solar, is slated to reach full production in 2021 and will serve Chilean customers. Solarpack’s subsidiary Maria Elena Solar will construct the solar farm.
Chile has been making solar headlines throughout the year. Bachelet previously announced that the subway in Santiago, Chile, would soon be home to the world’s first solar- and wind-powered subway. Also, earlier this year it was reported that Chile was giving away solar power because it had so much installed solar energy in some parts of the country.
“This tender, in addition to reaffirming the commitment of Solarpack with Chile, also demonstrates the competitiveness of Solarpack and solar energy at offering the best price among the bidding companies,” said Pablo Burgos, CEO of Solarpack.
This isn’t Solarpack’s first solar farm in Chile. It already has four solar farms in Chile. In fact it built the first unsubsidized solar farm in the world without subsidy. It also developed a 25 megawatt solar farm that produces 13 percent of the energy for Doña Inés de Collahuasi, a mining company.Tweet