Recently electricity supply has been pushed to keep up with demand, due - on the surface - to drought conditions and the dramatic rise in the price of oil. The local supply issues have been playing out against a background of global production constraints and skyrocketing prices. The energy supply issues are in turn affecting projected national growth. As a net energy importer and with a necessity to quickly grow electricity generation there is clear potential and need for the development of renewable energy infrastructure in Chile.With abundant hydro, eolic and solar resources, and its classification as potential recipient country of Kyoto's Clean Development Mechanisms (CDMs), Chile is well-placed to develop regulatory and market conditions to foster investment in this sector. Over the last couple of years we have seen some recognition of the issue, with several CDM feasibility studies underway, significant private investment and the signing of a law requiring investment in non-conventional energy sources.
At chilecentral.cl we aim to contribute to the debate over Chile's energy security, foment the use of renewables on both local and national levels and support the related policy required to create conditions for this uptake.
Of significant national interest and media attention is the US$2.5 billion HydroAysén Project, a 2750MW dam project which has received considerable public opposition. While potentially generating some 25% of Chile’s electricity requirements and consolidating further the ownership of the country’s electrical generation, such a project would come with a considerable environmental cost.
Chile might benefit from a broader approach whereby localized small-scale renewable projects input to the grid. This approach grows the supply market locally, creating employment and maintaining expertise while avoiding the impact of larger conventional hydro.
Let us know what you think.
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