Chile Energy Auction Gives Bachelet a Success to Boast About
- Auction of electricity contracts saw prices slump 40%
- Investment in industry cushioned economic contraction in 2Q
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After more than two years of sluggish growth, Chile’s President Michelle Bachelet finally has a policy success to boast about.
The biggest auction of electricity supply contracts in the country’s history Wednesday saw the average price slump 40 percent from the previous auction last year as renewable energy producers dethroned many of the country’s incumbent energy suppliers. At the same time, investment in the industry helped cushion a contraction in the economy in the second quarter.