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Chile faces important choices about how to meet its future energy demand. The country has increasingly relied on imported fossil fuels and hydroelectric plants, sources that have proved both unpredictable and expensive in recent years. Fossil fuels are subject to volatile price fluctuations, and hydroelectric plants have been plagued by several years of drought conditions. These sources also come with high environmental and social costs and have been subject to widespread public disapproval. Fortunately, Chile’s abundant nonconventional renewable energy (NCRE) sources like wind, solar, biomass, and geothermal can help stabilize supply, reduce the country’s exposure to price fluctuations of imported fossil fuel resources, and deliver energy to the country without the high environmental or social costs of traditional sources. With just over 1,000 MW of NCRE online, out of an estimated gross potential of more than 350,000 MW, there is still much room for growth.1 Geothermal energy has significant benefits for Chile 1. It is a clean nCrE resource and can pose fewer environmental and social risks. Geothermal plants produce only one-sixth of the carbon dioxide produced by a relatively “clean” natural gas field. additionally, they produce little or no nitrous oxide or sulfur-laden gases.2 and, unlike large hydroelectric facilities, geothermal projects do not have major, irreversible impacts on fragile ecosystems. a report by the Massachusetts Institute of Technology notes, “The general conclusion from all studies is that emissions and other impacts from geothermal plants are dramatically lower than other forms of electrical generation.”3 While all types of energy production can affect local natural resources and communities, a well-managed impact assessment process can reduce the potential impact of geothermal development on surrounding areas. 2. Chile has abundant potential capacity for geothermal energy generation. according to preliminary estimates, feasible potential in Chile is roughly 3,350MW.4 This amount is equivalent to nearly half of the increase in energy capacity the government predicts will be needed by 2020. 3. As a constant, domestic source of energy, it exposes Chile to less risk. as base-load energy, geothermal produces energy around the clock, making it an ideal substitute for costly fossil fuels and large-scale hydroelectricity. Unlike imported fossil fuels, geothermal would not be subject to fluctuations in international supply and prices. Unlike hydropower, geothermal would not be impacted by drought. Chile’s geothermal energy sources represent a significant opportunity to meet some of the needed growth in capacity. Boosting geothermal development would provide Chile with a clean, stable, and local base-load power source for its growing economy without the detrimental impact of conventional base-load alternatives such as coal or large hydro. Despite its great potential and interest from the private sector, however, geothermal development in Chile lags behind other NCRE sources. To discern what is holding the sector back, an analysis of Chile’s geothermal sector supported by the Natural Resources Defense Council has drawn on insight from actors in the public, private, and academic sectors to identify key barriers to growth and needed actions to boost geothermal production. 4. Long-term costs are cost competitive. according to an analysis of the levelized cost of energy in Chile through 2030, geothermal energy compared favorably with other alternatives. In fact, geothermal is one of the most cost- competitive NCrE sources and one of the more cost- competitive energy resources of any type—today.5 5. resources are located closer to demand centers. While certain geothermal resources may be in remote areas that are currently not connected to the main grid, they are geographically much closer to demand, particularly industrial operations, than are large-scale dams in the south. ●●●●● ●●●●● ●●●●● ●●●●● ●●●●● ●●●●● ●●●●● source: bloomberg New Energy Finance, 2013 Figure 1: Geothermal Energy versus other Energy Sources in Chile, 2013 HYDRO COST CONSTANT CLEAN POTENTIAL LOCATION GAS DIESEL COAL WIND ● ● ● ● ● GEO SOLAR PAGE 2 | Geothermal Energy: Unleashing the Earth’s Power to Fuel Chile’s Future BIO Unfavorable ● ● ● ● ● FavorablePDF Image | Geothermal Energy 2013
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