Solar photovoltaic projects: they raise the need to speed up their permits

Francisco Garrido, Chile Lands and Minerals commercial manager, points out to ELECTRICIDAD that this is one of the relevant points in the sector, whose growth in the sale of facilities continues to increase.

The need to advance in the processing of permits for the development of photovoltaic solar projects, given the current growth conditions experienced by this sector, states Francisco Garrido, Chile Lands and Minerals commercial manager, who analyzes the current state of the sale of this type of initiative in the local market, as well as its management.

According to the executive, the next challenges in the expansion of these projects are related to their proper location in the electrical system, especially considering the relationship between the commercial operation and the connection points.


How do you evaluate 2021 in terms of buying and selling photovoltaic projects in the Chilean market?

The year 2021 has been a very positive year in the sale of photovoltaic parks, and this is reflected in the gross generation of energy from NCRE, which reached 2,413.2 GWh, with 19.3% of it coming from parks photovoltaic In fact, the quota stipulated in Law 20,257, which states that by 2025, at least 20% of energy must come from NCRE, has been more than met (35%). These facts are a reflection of the stability of the country, the installed technical capacities and the geographical conditions of Chile, which have generated a high level of interest from investment groups. Although the greater offer for photovoltaic projects has generated a downward trend in the purchase value of projects, these values continue to be attractive for sellers and buyers, maintaining a dynamic market with growth expectations in the coming years.

What are the main management aspects involved in the sale process of these projects in the national market?

In the management of the purchase of photovoltaic projects, the real needs of the investor must be understood, the way to operate with all the actors that are part of the operation, considering legal, technical and associated time analysis. The consequence of this action translates into the generation of bonds of trust with all the entities that participate in a negotiation of this magnitude and, consequently, to the success of the operation.

What is your analysis regarding the management of permits that exists in Chile in this matter and the waiting times?

The responsibility in the management of permits has historically fallen on the developers of the projects who, due to their exhaustive knowledge of their designs, have well defined the details of how to approach the processes for obtaining all the necessary permits to be able to declare a photovoltaic project. in construction. This scenario is optimal for managing few permits, but when the volume of projects is higher, management, in some cases, becomes more complicated, since each permit is presented in different entities, with specific requirements and often in It is necessary to generate an additional management, referring to the survey of the observations that are generated. With Chile Lands and Minerals we have identified this action as a continuous improvement, which allows us to face the circumstances that arise, reaching high standards in the management of permit processing. Right now, we are experiencing a rather critical period in terms of permits for PMGD projects, since they are in the period of obtaining the resolution to inject energy with a stabilized price, in accordance with decree 244, and an objection to a permit, can even mean the non-acquisition of the project by an investor.

What is required to streamline permit management?

Although the management process is quite agile, where there are companies that develop this area quite well, it would be interesting for those that have not yet achieved a dynamic process, to be able to deepen the management of permits, in the sense of accompanying the process at all times. , so that a permanent follow-up is made to obtain them. On the other hand, understanding that the public system, even when they do their work in a very neat way, has a significant work overload, which could be analyzed in favor of even better management.

What prospects do you see for 2022 in the sale of these projects?

The market for the sale of photovoltaic projects has evolved rapidly in recent years. In 2021, 35% of the installed energy capacity came from NCRE plants, and of these 47.9% correspond to photovoltaic projects, 41.7% more than in 2020, therefore, it is expected that the trend will continue to rise , but with a slower trend. For this year, Chile Lands and Minerals is managing different portfolios for our clients that are tailored to their requirements, for an approximate value of US$5 million.

In your opinion, what are the main challenges in this area?

Since there is less and less area for the occupation of photovoltaic projects throughout Chile, the search for sites that have the characteristics required for the development of a park should be extreme. The main challenge would lie in finding the exact point between photovoltaic park and price, so that the work of a developer is compensated with the sale value that said park will have. Chile Lands and Minerals, throughout our existence, has contributed to expanding the demand for photovoltaic parks in Chile, integrating the different actors and generating instances, in order to achieve the success of an operation. Our main challenge is to consolidate what has been achieved in 2021 and generate new instances with the national ecosystem.







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