Renewable energy is a key source of growth in Chile's power sector and the government has setambitious targets for future development in order to source 20% of power from non-hydropower renewablesources by 2025, rising to 70% by 2050. Solar and wind power have attracted the most investment in recentpower auctions and further developments are likely over the coming years, though there are some downsiderisks in play which could affect our currently positive growth forecasts.
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Chile has long been considered the most attractive regional market in terms of renewables development,in light of an open and stable investment environment and supportive government policy. The countrycould, however, lose out to other regional markets such as Mexico and Argentina which, although higherrisk markets, offer stronger growth potential.