The company, to meet the demand, will invest more than $700m for the development of 350MW of utility scale solar photovoltaic (PV) power plants throughout the country.
TerraForm Power, a global owner and operator of renewable energy power plants, plans to acquire the projects once they are interconnected between 2015 and 2016.
SunEdison secured the provision of 190 gigawatt hours per year during the daytime block which starts in 2016 as well as a further provision of 380 gigawatt hours per year during the daytime block which will enter service in 2017.
SunEdison Europe, Middle East, Africa and Latin America president Jose Perez said: "Without incentives or subsidies of any kind, solar energy is 10-25% more affordable than imported fossil fuels in Chile.
"This bid represents a portfolio of strategic projects for SunEdison that will help diversify the energy mix of the Chilean grid and will help resolve the country’s energy supply deficit using clean, sustainable renewable energy at competitive electricity prices."
Power generated from SunEdison’s 350 megawatts utility scale projects will be sold to local energy commercialization companies under 15-year power purchase agreements.
TerraForm Power president and chief executive officer Carlos Domenech said: "As we acquire these power plants over the next several years, we will adding to our substantial base of facilities with high-quality, long-term power purchase agreements that are not affected by fossil fuel price changes."
