"Every day new SMEs continue to be affected, both in photovoltaic and wind power projects as well as substations," laments Blanca Zapata , Legal Representative of Santa Blanca SpA, a heavy machinery leasing company.
The businesswoman, along with María Pilar Navea , Representative of Green Mix Factory, Mauricio Ocaranza , Legal Representative of Ocamaq Servicios SpA, Sergio Guzmán , Representative of HR Servicios Integrales, and Ruth Rivas , Representative of Transportes y Alimentación Huachipato SpA, are already claiming for damages in non-conventional renewable energy projects in Chile.
This group of companies claims that more than 100 SMEs providing various services in the clean energy sector have already been scammed.
For her part, Blanca Zapata, Legal Representative of Santa Blanca SpA, claims to have been affected by the project called La Cruz Solar, owned by the Spanish company X-Elio, which is investing nearly 40 million dollars in this new plant located in the commune of María Elena, Calama.
The contractor for the project was the Spanish company Grupo Ortiz Construcciones y Proyectos.
The subcontractor is the Mexican company CIO, which, according to Zapata, never made the payment.
Ocaranza, from Ocamaq Servicios, a firm dedicated to the management of the rental of machinery and small equipment, claims that he was harmed in four projects located in the commune of María Elena and Peine.
On one hand, in the Santa Isabel project, by Total Eren, and Valle del Sol, by Enel Green Power.
The complaint falls on the Argentine subcontractor AIC SERVICIOS SPA.
On the other hand, his complaint once again implicates the La Cruz Solar park, owned by X-Elio, and the Andes Substation of Hanwha, due to the subcontractor CME of the SPP Group.
Navea, Representative of Green Mix Factory, a company dedicated to food, points out that she was affected by the Capricornio Solar Farm project, owned by Engie Chile, in the commune of Antofagasta.
Guzmán, Representative of HR Servicios Integrales, also claims to have been scammed in the La Cruz Solar project, by the subcontractor Adsimom; as well as in Santa Isabel, by Total Eren, by the principal Sterling and Wilson.
And Rivas, who runs a company dedicated to personnel transport and food, says she was scammed by two Argentine companies: FCS Energías SpA and AIC Servicios SpA, in the Santa Isabel and La Cruz Solar Projects.
In an interview with Energía Estratégica , these representatives explain their situation. How have they been affected? In Chile, what's currently lacking is regulation of the types of companies that come to invest in the country, not only the main developers, but also the small and medium-sized foreign companies that participate in the project; that is, their financial solvency, commercial evaluation; there needs to be a requirement and a regulation and procedure for those who participate in the project, because we've seen many tourists working in these types of solar parks.
Often, these are just shell companies, lacking investment capital, the financial backing to cover the initial stages of construction, access to credit in Chile, and the solvency to begin work. Most importantly, they are unfamiliar with Chilean legislation and safety regulations, so how can they be authorized to work? What we are seeking today is for the government to establish specific regulations and improve protections for SMEs in our role as suppliers to contractors or subcontractors during project execution.
Because there is the main company, the project owner or client, which in turn hires a contractor, which in turn hires a subcontractor, and, since all these companies outsource the execution of the project, the ones who perform or provide the actual services are the supplier companies, that is, the SMEs that supply specific goods and services to the solar parks.
Unfortunately, we are harmed when the principal companies do not properly supervise the contractors or subcontractors, who fail to comply with their obligations or established agreements.
Some contractors and subcontractors, upon receiving the first payment, simply abandon or disappear from the projects without justification; others bankrupt their companies to avoid responding and create another one with a new RUT (tax ID number) re-entering the market.
And as for the Guarantee Bonds of the principals, they are also insufficient to cover the costs associated with the final supplier companies, leaving us with a serious cash flow problem to cover, for example, the remuneration of workers associated with that project.
Subcontracting Law No. 20.123, for example, could cover fees for workers, but what about machinery rental? The Law has loopholes that do not recognize these types of expenses.
So, on the side of supplier companies or SMEs, we have no guarantee or regulation to support us against these unfair situations.
For this reason, we have appealed to the members of Congress, who have introduced a proposed amendment to the law with the intention of protecting SMEs. How many companies are currently affected, and what amounts of money have they been defrauded of? We are approximately 100 SMEs (small and medium-sized enterprises) affected, in addition to other larger companies that have also been harmed.
A percentage of SMEs have been outright scammed, and others, so far, have not been paid.
The amounts approximately total 5 billion Chilean pesos, equivalent to approximately 7 million dollars, between the regions of Coquimbo, Atacama, Antofagasta, Tarapacá and other affected regions of Chile are not ruled out.
This is serious because it has traditionally been said that Chilean small and medium-sized enterprises (SMEs) are the engine of the national economy. Thousands of families in our country depend on them, as do local businesses and companies in the region, many of which are located near solar parks. There is another important social issue here: working and living within the same community. Could more businesses be affected if this isn't resolved in time? Every day, new SMEs continue to be affected, both in photovoltaic and wind power projects.
We started with 4 SMEs with an accumulated debt of US$900,000.
Today we are already 100 SMEs with an accumulated debt of US$7,000,000.
Thanks to complaints on various digital platforms, as well as press releases, radio and television coverage, emails sent to the debtor companies with copies to their clients, and emails to Deputies and Senators of the Republic, we have managed to inform and make progress so far with the sincere intention of resolving the problem at its root: firstly, to get paid for the work already done, and secondly, to legally regularize the situation. 
List of projects involved.
A register compiled by the group of complaining SMEs : How could this be resolved? The first step is for the government, parliamentarians, and businesses to work together.
The Government should put pressure on and enforce order so that the project owners assume their responsibility and pay us what they owe us; the parliamentarians should push for the modification of law 20.416 and inform each relevant Embassy, since the principals and contractors are mainly foreigners.
Finally, the project clients are willing to make payments because it is a tangible benefit that only they received, whether it be in a trench, a solar panel, food, fuel, transportation, etc., and that is reflected today in the progress of a park.
Each SME that we proudly represent today has an involuntary investment in each photovoltaic park, wind farm or substation in which it participated.
Clearly, large non-conventional renewable energy companies (and I'm referring to the main contractors) must go beyond simply overseeing their work to authorize a Payment Statement; they must also demand proof of experience and solvency from the contracting and subcontracting companies, the workers they bring to Chile, and who participate in the construction of a solar park. They are the owners of the house, and one must know who enters their house.
If you look at the websites of these companies, you'll find many impressive displays of solar projects from other Latin American countries, but the reality is they don't even know how the country works. Should a similar model to that used in the mining sector be considered? Yes.
This system works from the top management of the mining company to the last link in the supply chain, with clear rules and a willingness to correct mistakes, which is why it is so important not to damage or break the value chain: here we all contribute.
Renewable energy is growing more and more every day.
We must put a stop to this now; in fact, there are already SMEs that have stopped providing services to renewable energy companies for a very valid reason: they aren't getting paid. Have you met with the Ministry of Energy to work on this? Yes, less than a month ago we met with the Undersecretary of Energy of Chile, Francisco López , the Head of Dialogue, Santiago Vicuña , and Felipe Álvarez , Legislative Advisor, all from the Ministry of Energy, along with representatives from the Ministry of Economy and Members of Parliament, and the meetings have continued.
The good offices are there, we are very grateful that they have listened to us, but the responses have not been what we expected because the problem that exists still has no solution.
We understand that these processes are not quick, but debts don't wait, and in times of pandemic everything becomes even more complicated.
The Ministry of Energy has created dialogue tables with the various companies involved and affected in order to work in parallel on best practices, but that doesn't help us now.
What we need is for the authorities to take action, modify the current situation, and move forward on these renewable energy issues. What is the timeframe for resolving this situation? SMEs are demanding concrete answers by the end of April.
We have organized ourselves at the level of all the companies in northern Chile, and some in the central and southern regions, to support each other in different ways, to demonstrate peacefully, but not everyone has the same patience. We also understand the people who react differently and who are financially ruined and tired of the abuses.
There are no more deadlines, 30, 60, 90, 180 and more days have already passed, there are companies that have been collecting for almost a year, many SMEs have gone bankrupt or are on the verge of bankruptcy due to poor management.
Green energy has already been tainted by so much fraud.
We should be focused on working, not on getting paid. Do you have any hope of resolving this problem? Chile has great ambitions tied to the sun that beats down on the northern desert of our country; we are in the same situation. We trust and have great ambitions placed in this government; we believe in it. Hope springs eternal, and we will recover our money.
We sincerely hope that through dialogue, with the support of the Ministry of Energy and the Deputies, the foreign principals of these solar projects will assume their social and economic responsibility to the Chilean people, which is what is required.
By Energía Estratégica
By Emilia Lardizabal
By Ailén Pedrotti
