Unpacking the evolution of Chile’s PMGD scheme
Originally designed to support small-scale generation near demand centers, Chile’s Pequeños Medios de Generación Distribuida (PMGD) pricing scheme has seen a shift in recent years. While initially focused on mini-hydro and thermal plants, solar projects have increasingly taken advantage of stabilized pricing since 2014—benefiting from steady revenues even when hourly market prices near zero.
By 2024, PMGD capacity had surged to 3 GW, with solar making up 82% of the total. This rapid expansion has led to rising systemic costs and sparked heated debate among policymakers, market stakeholders, and renewable energy experts.
Our recent public report, Charting the Future: Chile’s PMGD Stabilized Price Outlook, addresses these critical developments and explores what’s ahead.
Key insights include:
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How the current stabilized price (DS 88) compares to the previous scheme (DS 244)
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Market outlooks and expected adjustments to the stabilized price—and their potential impact on solar revenues
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Our perspective on how PMGD projects may evolve in the long term
Download the report for our key findings and analysis or watch our latest webinar on the topic.
Reach out to Enilio Alvarez to learn more about our power market forecasts in Chile.
