SAG Solarstrom enters Chile with 2-MW project

Nov 6, 2012 - German solar power plant specialist SAG Solarstrom AG (ETR:SAG) today said it would build a 2-MW pilot photovoltaic (PV) system in Chile in an effort to gain a foothold in a growth market.

The company plans to create a project pipeline in the South American country, including large-scale projects, following completion of the pilot development. Chief executive Karl Kuhlmann said it was already in discussions on how to set up the pipeline. "Chile offers very interesting general conditions for investors, even without state guaranteed feed-in tariffs," Kuhlmann said.

SAG Solarstrom will realise the 2-MW project in northern Chile in cooperation with an unnamed local partner. The installation will be located in Paiguano in the region of Coquimbo, which has a high level of solar irradiation, the German company said. Completion is scheduled for the first quarter of 2013.

The electricity generated will be sold to the landowner, a farm business. Any surplus power will be sold through the spot market, which SAG Solarstrom said offered good prospects for direct marketing of renewable electricity due to a feed-in priority.

The farm is expected to produce about 3,600 MWh per year, enough to power 800 four-member households. The site, which has been leased out by the farm, offers opportunities for expansion of the installation.

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