Chilean Geothermal Association stresses geothermal competitiveness for Chile
View of Santiago, Chile from Cerro San Cristobal (source: flickr/radzfoto, creative commons)
Francisco Rojas
15 Jan 2015
Citing a recent report from IRENA, Geothermal energy in Chile would be much cheaper than fossil fuels per Kwh and ACHEGEO calls for the Government to accelerate the delivery of concessions and implement a risk mitigation instrument that allows decreasing the initial costs for projects.
Fernando Allendes, President of the Chilean Association of Geothermal Energy (Achegeo) has recently highlighted the low costs for geothermal power generation, citing the results of a recent report “Rethinking Energy” by the International Renewable Energy Agency (IRENA) which states that the average levelized costs for this particular energy source would be around 10 cents per kWh, compared to the 14 cents of coal and 15 cents of liquid natural gas (LNG).
According to the document, the cost of energy from hydropower comes to 5 cents per kWh for large hydro projects; 10 cents per kWh for geothermal, biomass and onshore wind; approximately 14 cents per kWh for coal; and above 15 cents per kWh for LNG.
In his view, “on average, geothermal energy is very competitive once established”, so Allendes raised the need to overcome the outstanding debt to geothermal “because existing resources and the multiple benefits that geothermal energy has, are not being exploited. ”
“Apart from having a very competitive cost, geothermal generates lifelong employability. A study of Rutovitz and Harris, in 2012 shows that a geothermal plant creates 0.40 jobs per year in Operation and Maintenance per MW installed, against 0.10 jobs per year per MW installed in coal, and 0.08 jobs per year per MW installed on the gas” Allendes said.
In addition, Allendes said that progress is possible in hybrid generation with other energy sources, calling for the Government to accelerate the delivery of concessions and implement a risk mitigation instrument that allows decreasing the initial costs for projects.
Source: Revista Electricidad
