ESG & Investing
BlackRock and Brookfield Are Betting Big on Tiny Solar Farms in Chile
- Solar farms give ESG-focused investors access to stable prices
- Grid operator says small-plant incentives exacerbate surpluses
Projects of 9 megawatts or less qualify for a price stabilization mechanism.
Photographer: Cristobal Olivares/BloombergThis article is for subscribers only.
Some of the world’s biggest fund managers are piling in to a quirky Chilean business model that offers guaranteed long-term prices for power produced by tiny renewable plants.
BlackRock Inc. and Brookfield Corp. are among firms buying portfolios of small generators known as PMGDs for their Spanish initials. The mainly solar farms give environment-focused investors access to stable prices in a market characterized by renewable supply gluts that can mean large producers get nothing for their spot sales at times.