[Solar: Chile revises remuneration mechanism for PMGD solar projects]

Published: Jun 19, 2026 14:24

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Chile has introduced changes to the remuneration framework for solar projects under the PMGD scheme, which supports distributed generation projects of up to 9MW with access to stabilized tariffs. According to DNV, amendments to Supreme Decree 88 formally introduce the MEP Balance mechanism, meaning project revenues will no longer be based only on stabilized prices or marginal costs, but on a reference energy price adjusted by the MEP Balance. The mechanism incorporates storage charging and discharging, energy injections and withdrawals, marginal costs and later reimbursement obligations, creating new cash flow and operational risks for project owners.

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