Latin America Advisor, Energy AdvisorFeatured Q&A: What Are the Effects of Chile's Largest Energy Auction?
Chile announced the winners of its largest-ever energy auction on Aug 17, the results of which will dramatically drive down the price of electricity for the country in the next five years, government officials have said. The winning bids slashed electricity costs to US$47.60 per megawatt hour, significantly lower than the original market expectations of around US$80 per megawatt hour.
In a featured Q&A for Inter-American Dialogue's daily Latin America Advisor, Squire Patton Boggs Washington DC partner Kevin Levey and associate Loana Martin discussed who were the biggest winners and losers in the auction and if Chile has been successful in attracting investment into its energy sector, and specifically in its renewable sector, as compared to other Latin American countries. Mr. Levey and Ms. Martin also analyzed how the results of the auction will change Chile's energy outlook in the mid-term.