Chilean government working on risk mitigation scheme for geothermal
The Chilean Government is moving forward looking to mitigate risk in the initial drilling phase for geothermal and is already working with the Interamerican Development Bank to bring solutions.
Our sister publication recently reported that the Chilean Government is moving forward looking to mitigate risk in the initial drilling and is already working on a pricing mechanism being with the Interamerican Development Bank (IDB)
Investors believe that the Chilean Government must generate incentives in the riskiest stage of the investment, either through tax exemptions or by being involved in the early drilling process. This actually happened a few years years ago when ENAP participated in a joint venture with Italy’s Enel Green Power.
In this regard, the regional ministerial secretariat (SEREMI) said that “The Energy Agenda considers implementing schemes to reduce the risk in drilling deep wells for geothermal exploration stage , according to international experience, it is the riskiest stage on geothermal exploration. This aspect is probably the main differentiator of geothermal projects for other renewables, and therefore understand that mitigation about the conditions for the development of geothermal energy with other types of projects. Now we have an international cooperation initiative, which we will implement the IDB, that some projects can mitigate that risk and we are analyzing alternatives that continue or complement future . ”
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Source: Piensa En Geotermia Website