Deal activity is expected to pick up pace in H2 2023 with the inflation rate in the South American countries projected to drop by 6 points by the end of the year, to ~12%, according to the IMF. Chile is expected to lead the activity, surpassing Brazil in terms of investor interest. Enerdatics expects firms to continue their "wait and watch" approach in Brazil, as the newly elected federal government unveils energy transition strategies.
Over two-third of Chile's deal activity this year represented transactions for small-scale distributed generation (DG) systems - primarily in the central part of the country - with BlackRock, Blue Elephant Energy and Brookfield all making major moves. This is primarily due to the PMGD programme, which offers automatic grid access with no curtailment guarantee, transmission toll reduction and stabilized power price assurance.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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