Renewable Energy Projects: Enel brings its YTD installed capacity in Chile to ~1.1 GW, launches the largest solar farm in the country

published on 20 July 2023

Operation update: Enel Chile has obtained approval from Chile’s National Electricity Coordinator to commence commercial operations of the 398 MW Guanchoi solar plant. The construction of this groundbreaking project, located in the commune of Chañaral in the Atacama region, commenced in November 2021. The plant boasts an extensive installation of over 900,000 bifacial PV panels, which efficiently harness sunlight from both sides. Enel claims that this innovative approach results in a remarkable 14% increase in electricity generation compared to conventional panels.

With this significant milestone, Enel has successfully operationalized ~1.1 GW of solar projects in the country this year, with notable ventures including the 375 MW Campos del Sol and the 163 MW Valle del Sol projects.

Enel’s strategy in Chile: Enel’s recent project development milestones in Chile highlights the significance the country plays in its expansive growth strategy, outlined in the Strategic Plan 2023-25.

The Strategic Plan, with a primary focus on sustainable electrification and financial stability, has strategically identified six core markets for Enel's future growth: Italy, Spain, the United States, Brazil, Chile, and Colombia. Furthermore, Enel intends to divest its business operations in markets that are not central to its growth strategy. The company also aims to sell non-core assets within its core markets. By doing this, Enel aims to raise money and reduce its net debt to $52bn by 2023.

Enel’s recent moves in Chile is in line with this Strategic Plan, completing the sale of its transmission business to Grupo Saesa for $1.5bn and divesting a matured solar PV portfolio of 416 MW to Sonnedix for $550mn. These strategic divestments have enabled the company to reduce its net debt by ~$2.1bn. Furthermore, Enel has earmarked around 14% of its planned $18bn capital expenditure budget for the period 2023-2025 specifically for the Latin American (LatAm) region, with Chile being the primary focus. The company intends to deploy these funds for the planned buildout of ~5 GW of renewable assets in the region during the mentioned period.

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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