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The franchise conditions included the use of a legal contract. Thefranchiseeisobligedtomaketheinvestments that were agreed to in the contract, including those regardingthe explorationperiodandtheonesconcerning theinstallationprojectforthegeothermalarea exploitation. The payment of an annual patent fee to the State is established after the exploitation project is finished. An exploration period with a maximum of five years (that may he extended two years more) is established. Three months before its end, plans for an installation project must be presented and they must include a working schedule and minimum annual investments. The Mining Ministry can cancel a franchise if the investmentplanisnotfollowed(González,1995).A relevant issue for Chile is where geothermal fields are located and the possibility that a geothermal and mining concession could be located in the same area. Chile’sminingsector,thesinglebiggestindustryinthe country,remainsingovernmenthands. Atleastapartial privatizationofstateoil(ENAP)andmining(ENAMI)is underconsideration.CODELCO,thestatecopper corporation, is by far Chile’s largest company, as well as the world’s largest copper company. An issue which is still largely debated is how to guarantee therighttohaveorexploreageothermalconcession without granting a right which has a speculative character. There are several reasons why a private entity that has a geothermalconcessioncouldnotmakeaninvestment. The Law establishes that the owners of a concession have certaindevelopmentalbenchmarkstoreachincertain periodsoftime. Ifthesebenchmarksarenotattained,the developer could lose the concession. Geothermal Sites / Projects Chile has an estimated 2,350 MWe of geothermal power potential. There are currently no geothermal power projects in Chile. Any future projects would have to compete equally with existinggenerationontheinterconnectedgrid. Theaverage cost of generation in Chile is 2.1-3.5 ¢/kWh (Germain, 1998). Chile began identifying its geothermal resources in the late 1960swithassistancefromtheUNDP. Explorationhas primarilyoccurredinthenorthernpartofthecountry,in Tarapacá(RegionI)andAntofagasta(RegionII). Themost in-depthstudieshavebeendoneatElTatio. Geothermal exploration has been concentrated in this part of the country because it has few alternative energy sources. Investigations have shown the existence of at least 200 geothermalfeaturesscatteredthroughoutthecountry. Low enthalpy resources (less than 100oC) have been identified Geothermal Resources in Latin America & the Caribbean 144PDF Image | Geothermal Resources in the Caribbean and Latin America
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