Abstract:
Both the Chilean & New Zealand (NZ) Electricity Markets are hydro-dominated and are experiencing a growing number of (planned) wind power projects. Chile has a regulated energy and capacity payment market, while the NZ Electricity Market (NZEM is an energy-only market, which create different income and risk profiles for wind farms. Both have potential additional income streams from renewable/emissions trading sources. The article compares the costs and income/reward streams for wind projects in both countries and tries to draw lessons. These could be valuable for other countries as well, as Chile's system represents Latin-American markets, while NZEM is more typical of English/European model (UK, Norway, Australia, NZ).
