Monica Eggers

Renewable energy projects growing in Chile

Chile is such a small country and so far away from the rest of the world.  It can seem that Chile  makes no difference at all to the ever increasing worries about climate change.  However,  climate change is slowly taking a foothold in the minds and ways of the Chileans, and little by little the country is starting to address the issue.  

Geographically, Chile is well suited for renewable energy projects, starting with over 4,000 kms of coast that offer optimal wave and tidal energy resources, plus excellent wind resources for on-shore projects.  The country's climate ranges from hot and arid in the northern Atacama desert - boasting one of the highest values of solar radiation on the planet, to very cold and rainy in the Patagonia - excellent for hydro and wind projects. The central zone, including Santiago, has a Mediterranean climate with 4 distinctive seasons. Much of the south has a very high rainfall. The central and southern areas have potential to develop small and medium size run-of-river projects, wind energy projects, and biomass projects from forestry and agricultural waste.

With the support of government regulations and financial instruments, the development of  renewable energy projects is increasing significantly.  From a total installed capacity throughout the country of  some 13,200 MW at the end of 2008, only 2.8% are generated by renewables, mainly small hydro, on-shore wind and biomass.  The current government is expecting this figure to increase to over 4%  - some 550 MW - by the end of 2009.  

To show its commitment, the Chilean government recently launched the Centre for Renewable Energy, which will act as an information hub, as a liaison between the private and public sectors, and will also support investment promotion and technology transfer.  

On-shore wind projects for around 1,000 MW and an investment of USD 2.2 million have been approved by the Environmental Impact Assessment System for the Coquimbo Region IV, 500 km north of Santiago, and additional projects for 570 MW in other regions are currently in the EIAS pipeline for approval.

A bill has been issued by the government - in its final stages of approval in the Senate - to subsidise the installation of thermal solar systems to displace the use of gas in heating water in new houses and residential buildings.  Social housing projects and medium sized houses will be able to apply for a 100% subsidy.  

Outstanding solar radiation resources in nothern Chile have prompted the government  to launch a bid for a 5 kV photovoltaic pilot project in San Pedro de Atacama.  In addition, SolarPack, a Spanish company, is planning a 9 MW photovoltaic plant near Calama, in the Atacama desert with an investment of USD 40 million.

All throughout central and southern Chile's Andean foothills there is a potential of some 3,000 MW to develop small run-of-river power plants, and a generation potential of around 850 MW from existing irrigation infrastructure.

Research is being carried out jointly by government institutions, universities, and consortia including the private sector to produce biofuels from jatropha and from marine algae.  Some regulations are already in place.

Chile's wave and tidal energy resources are some of the world's best generating interest from local and foreign companies, although still in an early stage from the technologies and regulations point of view.  Research is being carried out by some universities.

The development of a wide range of services such as consultancy, project development, measurement equipment, analysis equipment, engineering and logistics services, assembly lines, maintenance services, R&D, capacity building will be fundamental for the expansion of the renewable energy industry - and an excellent business opportunity for foreign companies.

Posted at 10:23 29 September 2009 by Monica Eggers  |  Comments[0]