Chile’s power sector is heavily dominated by coal-powered electricity and the country is on a trajectory to add 8000 – 10000 megawatts of new capacity by 2020. In an effort to make Chile’s electricity supply less dependent on imported fossil fuels and to encourage the development of non-conventional renewable energy (NCRE) sources Chile is developing a NAMA in the form of a Price Stabilization Fund (PSF). The objective of the PSF is to catalyze commercial bank financing for NCRE projects which will by effect increase and accelerate the realization of NCRE investments over time. The energy spot market in Chile has created unique barriers to financing NCRE projects due to high spot market price volatility which discourages investors and project developers to enter the market. The PSF will execute long-term (10-15 year) fixed priced payment contracts with renewable project developers to overcome the price fluctuations by providing certainty to investors by guaranteeing a floor price to NCRE projects and assuming the spot market price risk. CCAP is supporting the Chilean government financial intermediaries industry stakeholders and project developers in the design of the PSF. The NAMA will result in significant GHG benefits strong local health impacts and significant leveraging of private investment at low cost to donors.