PPAs can no longer rely on variable energy alone

The Chilean power system has incorporated a significant share of renewable generation—particularly solar—which today represents a majority of the country's electricity mix.

This has increased supply variability and a growing dependence on system operating conditions, leading to phenomena such as higher curtailment of clean energy, significant differences in hourly prices, and greater exposure to congestion.

In this context, a contract based solely on variable energy is no longer sufficient for industrial development. For years, power supply contracts were structured under a relatively stable assumption: that generated energy could be delivered to the system under predictable conditions. That assumption—once the foundation of market growth—is now reaching its limits.

The context has changed. PPAs (Power Purchase Agreements) are evolving into structuring tools that must respond to the fact that energy cannot always be injected when it is produced, that prices fluctuate significantly throughout the day, and that the ability to meet contractual obligations depends on system conditions.

Supply structuring is now incorporating new variables, including manageable energy blocks, supply profiles closer to actual demand, and complementarity between technologies. At this point, energy storage plays a central role, as it enables the transformation of variable generation into manageable supply—shifting energy to higher-value periods and reducing exposure to adverse conditions.

This improves the operational performance of each project and directly impacts its bankability. Banks and investors no longer assess installed capacity alone, but also the stability of future cash flows.

PPAs, therefore, are evolving from energy-centered contracts into instruments that stabilize revenues, manage market exposure, and enable financing. In practice, this redefines which projects can move forward and which are left behind.