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StAtUS oF rEnEwAbLES In ChILE There is growing political support for renewable energy generation in Chile. In 2008 Chile set the goal of producing 10 percent of the nation’s power with NCRE sources by 2024.6 The present administration’s National Energy Strategy for 2012–2030 recognizes the advantages of renewables and calls for greater NCRE penetration. In 2013 the Chilean legislature passed a law setting the more ambitious—yet still attainable—target of generating 20 percent of Chile’s energy needs with NCRE by 2025.7 This new target should help spur further growth of renewables in Chile. The NCRE sector has already been steadily expanding: 2012 was a record-breaking year for the industry, with a 23 percent jump in capacity over the prior year.8 As of the third quarter of 2013, there are 1,072 MW of NCRE in operation, accounting for 6.06 percent of installed capacity in the country’s two main grids—more than what was required for the year under the original renewable energy goal. Figure 2 shows that significantly more capacity is either already approved or under evaluation.9 StAtUS oF GEothErmAL EnErGy In ChILE Despite the promising outlook for NCRE in general in Chile, development of the country’s geothermal options still lags far behind development of other renewable sources. To date, only two geothermal plants totaling 120 MW of capacity have received approval: Enel Green Power’s Cerro Pabellon and Mighty River Power’s Tolhuaca. Yet they are still a few years away from beginning operation. Mighty River Power’s Tolhuaca plant could begin producing energy at some point between 2017 and 2019.10 With a recent infusion of funds from the Philippines’ Energy Development Corporation, Alterra Power is hoping its Mariposa geothermal project, with an expected potential of more than 300 MW, may be ready in coming years.11 Various other energy development 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 source: Center for renewable Energy, Government of Chile, september 2013 companies also recognize the potential for a larger, stronger geothermal sector in Chile and have established a presence in the market. In fact, a tender for 20 geothermal concessions that closed in April 2012 brought nearly USD $250 million of anticipated investment from both domestic and international companies.12 By the end of 2012, 76 concessions had been granted for geothermal exploration and 6 concessions granted for exploitation.13 GEothErmAL EnErGy IS A ProvEn tEChnoLoGy AroUnd thE worLd The companies considering investments in Chile are not hoping to make history; they are hoping to repeat it. Iceland and New Zealand are well known for their success in turning to their geothermal resources to overcome energy constraints.14 Several other countries have also made geothermal energy production a part of (or even a cornerstone to) their energy strategies. The Philippines, for example, has exploited roughly 42 percent of its estimated domestic geothermal capacity. Mexico has taken advantage of nearly 60 percent of the geothermal resources within its borders, and Costa Rica and El Salvador are exploiting between 20 percent and 30 percent of their resources.15 Countries in Africa, like Kenya, are also very active in the development of geothermal resources. Indonesia has more geothermal projects in the pipeline—some 3.2 GW—than any other nation in the world.16 Clearly, geothermal development has not been limited just to certain economies, countries, or regions of the world. Outside of Chile, the footprint of geothermal energy is significant and growing. The International Energy Agency (IEA) envisions that geothermal energy could produce 1,400 TWh of electricity per year, or 3.5 percent of the world’s electricity generation, by 2050 (see Figure 3). Figure 3: IEA vision for Geothermal Power Production Figure 2: Status of renewable Energy development in Chile, September 2013 8000 1,600 7000 4% 1,400 6000 3.5% 1,200 3%■ 5000 1,000 2.5% ■ 800 4000 2%■ 600 3000 1.5% ■ ■ 400 2000 1%■ Share of global electricity (%) OECD North America OECD Europe OECD Pacific Other India and China Developing Asia Africa and Middle East .5% ■ 0000 Bioenergy Wind Mini-Hydro Solar Geothermal ■ Operation (MW) ■ Approved, not constructed (MW) source: International Energy agency, 2011 ■ Construction (MW) ■ Under Review PAGE 3 | Geothermal Energy: Unleashing the Earth’s Power to Fuel Chile’s Future 200 1000 2010 2015 2020 2025 2030 2035 2040 2045 2050 MW TWh/yPDF Image | Geothermal Energy 2013
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