as a result the further development of the renewable energy sector was at risk since low spot market prices had an adverse impact on the bankability of renewable energy projects increasing their cost of capital to overcome the overcapacity challenge in chile s national electric coordinator cen completed a major infrastructure project to connect the sic with the great northern interconnected system sing the latter is located in the north of the country and services a large share of industrial activities in particular the mining sector the further successful development of the chilean renewable energy sector will depend on continued technological advancement including storage solutions regional interconnection with neighbouring countries and effective energy demand management government may contribute to bridging remaining risk gaps in innovative pilot projects particularly those that might otherwise not be implemented but have significant potential to generate benefits for the economy and society in the future