Renewable energy: An opportunity for ChilePublished: August 12, 2009
Chile has a strong potential for energy savings and is able to offer real alternatives to the dependence on diesel and gas. Consequently, the Chilean government is working on various initiatives in the renewable energy sector.
For the past five years the Chilean Economic Development Agency (CORFO) -through its InvestChile Program-, along with the National Energy Commission (NEC) have been developing a agenda to attract and promote investments in Non-Conventional Renewable Energy (NCRE) within Chile.
Chile contains many sources for renewable energy such as geothermal energy, which can be produced from thermal springs, and hydraulic energy, which is created through the force of moving water and can be produced from numerous rivers in the south of Chile.
Likewise, Chile has already taken steps to develop wind energy through projects such as "Alto Bagüales", in the Aysén Region, which now supplies energy for 19,000 families.
Furthermore, initial studies have been done on the possible energy generation from tidal forces in which Chile holds a "unique potential within the world" that "in the case of waves" could generate 164.9 gigawatts (GW) of energy. These studies have just been published by the National Energy Commission (NEC) and represent a research project funded by the Interamerican Development Bank (IDB) and conducted by Garras Hassan, a Britain-based consultancy firm. Field work from these studies and information exchange with NEC, Directemar, CORFO, CONAMA and the Chilean Navy, identified the nine "most promising" sites for developing this type of Non-Conventional Renewable Energy (NCRE).
The most promising areas are identified as Ventanas and San Antonio ports in the Valparaíso Region; San Vicente and Coronel in the Biobío Region and Corral and Puerto Montt, in the Los Lagos Region, with an estimated capacity between 54 and 85 GW hour/year.
The report estimates that in terms of tidal energy, "Chile could play a decisive role, benefiting from an early and active involvement, including international leadership positions".
CORFO's Deputy Head of Investment Promotion, Javier García, stated that "currently, the most promising technologies are the small hydraulic, wind and biomass, because they are mature technologies at reasonable costs and fully viable options. We cannot put all the renewable energies under the same umbrella. We are promoting them all, but three of them are already giving very encouraging and significant results".
CORFO's strategy to address NCRE's is based on investing in subsidies, instruments and incentive programs that will further develop them and work towards the creation of the Center for Renewable Energy. The Center for Renewable Energy will work with the countries in the Union of South American Nations (UNASUR) in various renewable energy incentives, innovations and research programs and policies. In addition, it will adapt, channel and disseminate the technological innovations and developments being implemented throughout other regions of the world.
The support of NCRE projects is reinforced by: "Pre-investing through the subsidies to undertake the engineering studies, including those required to apply for carbon bonds. The first phase provides up to US$60,000 in subsidies and is capped at 50% of the cost of the studies. Subsequently, with support from the German Government - through the German bank KFW and the NEC - a second stage for advanced engineering projects provides up to US$160,000 and is capped at 50% of the research costs", as stated by García.
Support for investorsAdditionally, there are financial instruments being developed by the public sector. CORFO wants to provide support to project developers "as many of them do not come from the energy field, therefore, we organize an annual International Investment meeting in NCRE, which facilitates the search for investors since some time ago we detected serious problems to secure funding", García emphasizes.
According to García, "we have worked to attract investors from the USA and Europe where there is a market for renewable energy projects. As a result, there are already international groups investing in Chile, among them, Spanish, Italian, Irish and German".
This year, on September 7 and 8, the 4th International Conference on Renewable Energy Investments and CDM will take place in Santiago, Chile, at the Crowne Plaza Hotel.
Sources:www.emb.clwww.nexchannel.cl