Many countries that traditionally had a challenge in the generation of power when fossil fuels ruled the world are emerging as winners in the move to green energy. This is because they can reduce their dependency on imports of fossil fuels, gas and electricity from neighboring countries and can generate their own power. Adverse climatic conditions, such as sun-drenched deserts, strong and sustained winds and seismic activity are exactly what is needed to promote clean power. This is why Chile is attracting interest.
The extraordinary geography of Chile, which is nearly 2700 miles long, but never more than a couple of hundred miles wide, resulted in 2 separate grids, one for the North and one for the South. With a 600 Km gap between the two grids, Chile was vulnerable to pressures of demand and supply, but the situation has now been rectified by the construction of an interconnecting transmission line, resulting in a unified grid. While this is adequate for
current requirements, the transmission grid will need strengthening and extending to accommodate renewable generation as solar and wind farms are generally situated in remote sites.
The Atacama Desert is one of the best places in the world for generating solar power. Wind power is also viable, and, with its long coastline, there is room for ocean power. Chile is implementing geothermal solutions too, as it is situated on the Pacific “Ring of Fire”, like Japan. To date, the kWH costs for geothermal are still higher than coal power, but the drive is on to reduce these costs. Biogas is also expected to form part of the energy equation in the future. Like most of South America, Chile has always obtained much of its power from hydro resources, and hydro power provides a reliable backup for any of the intermittency of solar and wind power.
To add to the potential for new sources of energy in Chile, the energy market is transparent and only lightly regulated, helped by the fact that the grid is privatized. The State has shown firm commitment to reducing carbon emissions while rapidly growing its power generation capacity and actively welcomes renewable energy suppliers. Chile has a vibrant and expanding economy, which will require ever more energy, especially in the far North, where the country has a rich storehouse of minerals waiting to be mined. It is estimated that capacity must double by 2050. This is why it has become one of the top countries globally to attract renewable energy suppliers.
