New Solar Power Plant

Chile has just contracted for the cheapest unsubsidized power plant in the world, Bloomberg New Energy Finance (BNEF) reports.  In last week’s energy auction, Chile accepted a bid from Spanish developer Solarpack Corp. Tecnologica for 120 megawatts of solar at the stunning price of $29.10 per megawatt-hour (2.91 cents per kilowatt-hour or kwh). This beats the 2.99 cents/kwh bid Dubai received recently for 800 megawatts. For context, the average residential price for electricity in the United States is 12 cents per kilowatt-hour.

“Solar power delivers cheapest unsubsidised electricity ever, anywhere, by any technology,” BNEF Chair Michael Liebreich said on Twitter after this contract was announced.