Charting the Future: Chile’s PMGD Stabilized Price Outlook

Originally, the Pequeños Medios de Generación Distribuida (PMGD;  Small Distributed Generation Means) pricing scheme was designed to incentivise the deployment of small-scale plants—primarily mini-hydro and thermal plants located near demand centers. Since 2014, solar plants have increasingly benefited from the stabilized pricing scheme, ensuring steady revenues even when hourly market prices approach zero. As a result, installed capacity has increased to a total of 3 GW in 2024, 82% of which is solar.

This rapid rollout of solar PMGD projects has driven up systemic costs and sparked increasing debate among policymakers, market participants, and renewable energy experts. Although recent regulatory changes aim to address these issues, PMGD pricing remains a contentious topic across political, regulatory, and economic circles.

Our Public Webinar will tackle these key concerns and examine potential long-term market outlooks, including:

• How does the current stabilized price (DS 88) compare to the previous scheme (DS 244)?
• What market outlooks and adjustments to the stabilized price can we expect, and what impact could they have on solar revenues?
• What is our perspective on the evolution of PMGDs over the long term?