News

Chile seeks investment from China for energy and infrastructure projects

Chile seeks investment from China for energy and infrastructure projects Tolhuaca National Park, Chile (source: flickr/ Pato Novoa, creative commons)
Francisco Rojas 22 Sep 2014

Chile is seeking investors for power generation and distribution projects to meet rising demand and enhance energy security and distribution efficiency, especially in clean energy.

Chile has seen a huge increase in trade and business with China in the last few decades. China always hungry for resources has also been increasing foreign direct investment worldwide.

According to local news Chile, the South American nation is also seeking investors for power generation and distribution projects to meet rising demand and enhance energy security and distribution efficiency, especially in clean energy.

The same source states that Chile generated 43 per cent of its electricity from hydro energy, 52 per cent from fossil fuel, and 5 per cent from renewable energy like wind and solar, according to the nation’s largest electric utility Endesa Chile. Hydro, solar and also geothermal are abundant and currently are underdeveloped in Chile.

It is expected that demand for power will also increase in the near future. The Chilean National Commission of Energy has forecast the nation’s power demand to rise 64 per cent between this year and 2025, or an annual average of 4.6 per cent. It is also noteworthy to indicate that the mining industry accounts for about 35 per cent of total demand.

Due to these projection, Chile is looking at all forms of energy generation and having huge potential for renewables in the north of the country could start a new golden age of green energy in the region. Law makers are also interested in developing the green energy potential, namely through a new law passed last year requiring at least 20 per cent of Chilean electricity output to come from renewable sources by 2025, up from 6 per cent the year before.

Source: South China Morning Post Website