Wind and solar dominate renewable development in Chile
Bloomberg states that Chile has a growing need for power and renewables, mainly solar and wind will play a key role in the near future. Geothermal is also a viable option in the region.
While geothermal is mentioned, there has been little news of development as of late. Wind and Solar seem to dominate renewable energy development in Chile, as a recent article in Bloomberg highlights that “Chile imports more than 90 percent of its fossil fuels and pays the highest power rates in Latin America. Five years of drought have depleted reservoirs at hydroelectric dams, making Chile more dependent on coal and diesel to run electricity plants.”
This creates a perfect situation for renewables, and more specificly, geothermal since Hydro is not viable at the moment due to draughts. Solar and wind will most likely take the lions share but geothermal can prove to be a worthy contender for the fight for renewables. The same article states things are looking good for green energy; “We’ve gone from a perfect storm to a permanent storm,” said Carlos Finat, head of Acera, Chile’s renewable industry power association. Electricity on the spot market costs $130 a megawatt-hour. While power-purchase agreements for solar and wind power are typically confidential, renewable energy costs less, he said, according to data from the national power regulator.”
With high GDP growth and demand for copper expected to increase in the coming years, energy is going to be increasingly important for the development of the economy and renewables have a lot to add in this context.
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