Investment plan for Chile emphasizes renewable solar power and energy efficiency
Chile’s CTF investment plan will strengthen the country’s energy security and meet its commitment to tackling climate change. Prepared by the country’s Energy Ministry with input from national stakeholders, the IDB, and other multilateral and bilateral institutions,the original plan was endorsed by the CTF in May 2012 and a revision was endorsed in September 2013.
The plan aims to more than double the country’s non-conventional renewable energy resources in the next decade, in part through CTF financing for projects that presently face a combination of technological and market risks that prevent their full-scale deployment. The total of US200 million in CIF resources will finance the following:
- Concentrated Solar Power Project to construct a solar plant linked to thecountry’s northern or central grid. (IDB approval pending)
- Large-Scale Photo Voltaic Program to scale up photo voltaic power installations across the country. (IDB approval pending)
- Renewable Energy Self-Supply and Energy Efficiency Programto promote energy efficiency and self-supply generation technologies for industries. (IDB approval pending)
- Chile Geothermal Risk Mitigation Program to finance the first geothermal power plants in the country (IDB approval pending)
Chile’s net GHG emissions increased three-fold in the 1984-2006 period, to some 80 million metric tons annually, and are growing at an annual rate of 6 percent to 8 percent. Although the country’s emissions are relatively low in a global context, its continuing rate of economic growth is expected to fuel arapid increase in emissions
The government has made a commitment to reduce GHG emissions by 20 percent by 2020. Measures to achieve this goal include the requirement to provide 20 percent of Chile’s electricity matrix by non-conventional renewable energy sources by 2025. GHG emissions in the energy sector will be reduced through greater energy efficiency and increased exploitation of renewable energy, and land use change and forestry measures. The Energy Ministry (MINEN), the newly established Chilean Agency for Energy Efficiency (ACHEE) and a Renewable Energy Center (CER) are responsible for carrying out these initiatives.