BlackRock and Brookfield Bet Big on Tiny Chile Solar Farms (1)

Some of the world’s biggest fund managers are piling in to a quirky Chilean business model that offers guaranteed long-term prices for power produced by tiny renewable plants.

BlackRock Inc. and Brookfield Corp. are among firms buying portfolios of small generators known as PMGDs for their Spanish initials. The mainly solar farms give environment-focused investors access to stable prices in a market characterized by renewable supply gluts that can mean large producers get nothing for their spot sales at times.

The money flowing in to PMGDs is part of a clean-energy boom in Chile, with the South American nation’s abundance ...