For years there has been a lot of talk about clean energy
in America, China, and Europe, but a new player has entered the field
of play: Latin America. Eager to kick their dependence on coal, oil, and
other fossil fuels, these nations are beginning to ramp up their
investment in renewable power.
Whereas Brazil used to be
the only country that had any sort of significant investment in the
sphere, recently countries like the Dominican Republic and Uruguay have
stepped up their games, but no one has come close to the green power
shift undertaken by Chile.
Fortuitous location
Chile’s location and access to an abundance of clean energy
has the country primed for growth. It’s Atacama Desert has levels of
solar irradiance that the rest of the world can only dream about, there
are strong winds both on and offshore waiting to be harvested, and its
location next to tectonic plates make geothermal energy a tempting
option going forward. In September 2013, Chile’s government voted to
pass legislation for even more ambitious renewable energy levels
nationwide, upgrading the existing law mandating that 10% of the
nation’s energy portfolio come from renewable sources by 2020 to an
impressive 20% by 2025.
Cost of electricity
Chile
has a high demand for electricity led by a massive energy-intensive
mining industry, and this coupled with high prices from importing fossil
fuels, in addition to an inefficient electricity grid, results in an
enormous electricity bill. The higher costs for standard grid
electricity (an average of $0.25 per kilowatt-hour in Chile compared to
about $0.10 in America) mean it will be easier for renewables to reach
grid parity.
World leader in solar irradiance
Northern
Chile is the home of the Atacama Desert, which receives the highest
levels of solar irradiance on the planet. If Germany can lead the world
with this much
solar irradiance, the sky is really the limit for Chile. Due to the
solar potential, companies have already begun to work together to build a
solar power plant called Project Salvador in the Atacama that won’t
need any subsidies, and will still be cheaper than fossil fuel-derived
electricity. When finished, the project will be a 70 MW installation,
and will produce 200 gigawatt hours of electricity a year, enough to
power about 60,000 per year. The project has an expected price tag of
approximately $200 million and construction is set to begin in the fourth quarter of 2013. Electricity delivery to the grid is projected for the first quarter of 2015.
To
date, over 13 gigawatts of renewable energy has been submitted for
review and approval by Chile’s Center of Renewable Energy and of this,
solar accounts for a whopping 57%. Not all of the proposed projects
will be accepted, but it is certainly a great step forward for a country
that currently has only 6.7 megawatts installed and operating.
While
not expected to have the growth of solar, the wind industry in Chile
will also play a nice role in the expansion of clean energy there.
Numerous companies have plans to install several hundred megawatts
through various projects. Mainstream Renewable Power recently finished a
deal to construct 450 MW of wind power projects that should be
operational by early 2016 and has an investment value of $1.4 billion.
Don’t blink, or you’ll miss Chile’s transition to renewable energy.
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http://theenergycollective.com/jeremy-gottlieb/311841/chile-next-star-renewable-energy
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