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S.A.G. Solarstrom AG implements pilot project in Chile



S.A.G. Solarstrom has announced a 2 MWp pilot project in Paiguano, in the Chilean region of Coquimbo, together with a local cooperation partner in Q1 2013. The landowner will purchase the electricity produced and any excess electricity will be sold via the spot market. Through this pilot project, S.A.G. Solarstrom AG wants to gain a foothold in the Chilean market and set up an appropriate project pipeline, intended to include large-scale projects, from 2013.

"Chile offers very interesting general conditions for investors, even without state guaranteed feed-in tariffs", explains Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. "The country is politically stable, legally secure and shows dynamic economic growth, so that considerably higher energy requirements can be reckoned with over the next few years".

The Coquimbo region, approximately 500 km north of Santiago de Chile, has a high level of specific solar irradiation at around 1,790 kWh per kWp. In Germany, the irradiation is on average between 850 and 1,100 kWh per kWp. Around 3,600 MWh can be produced annually in Paiguano with the 2 MWp photovoltaic system, which can supply 800 four-person households with electricity. The Chilean government wants to increase the share of renewable energies in power production to 20% by 2020. Green electricity will enjoy feed-in priority, and at the same time companies who invest in Chile benefit from tax advantages.

The electricity from the photovoltaic system in Paiguano will be taken from the locally based farm business. The system will be constructed on an area that cannot be used for agricultural purposes, which has been leased out by the farm and offers expansion possibilities. Production surplus will be sold via the spot market, which offers good prospects for direct marketing of the green electricity thanks to the feed-in priority.

"The 2 MWp system provides us with the opportunity of gaining a foothold in a very interesting growth market, with manageable risks. We are already in talks on how to set up an appropriate project pipeline to include large-scale projects in Chile, after the successfully conclusion of the pilot project", concludes Kuhlmann.

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