• NORTHERN CHILE
• World’s driest desert.
• Solar, wind, and geothermal energy are highly viable options.
• The Atacama Desert has one of the highest solar radiation levels worldwide, averaging 4,800 Kcal/m2/day.
• CENTRAL CHILE
• Suitable for biomass,
• Small run-of-river stations, and
• Wind power projects.
• SOUTHERN CHILE
• Unique temperate forest, with annual rainfall of 1,000 mm and up.
• Especially appropriate for biomass production.
• Small- and medium-size run-of-river stations,
• Geothermal projects, and
• Wind farms.

• Enacted March 13, 2004, the Electricity Act (Law 19940) introduced significant amendments to Decree-Law 1 (1982).
• The Act seeks to overhaul the system and improve transparency for both investors and consumers.
• The Act also seeks to ensure timely investment in energy source development.
• The Act introduced important changes to transmission system development and operation (transmission becomes a public service; a new procedure for determination of transmission tower emplacement is instituted).
• The Act provides consistent rules for node price determination.
• The Act encourages smaller NCRE plants.

New Measures Implemented Include:

• Transmission toll exemption/reduction for projects under 20 MW.
• Guaranteed grid access (especially for small-scale operators).
• The right to sell energy at a stable marginal cost (a predictable market price, which reduces variability of the spot marginal cost).
• Distributors are required to procure at least 5 percent of energy sold to regulated clients from renewable sources (if feasible).
• Renewable sources with the greatest impact potential within the Central Power Grid (SIC) include geothermal, wind power, small hydro power stations, and biomass. In the Power Grid of the Greater North (SING), these include geothermal, solar, and wind power sources.

Amendments contained in Laws 19940 and 20018 improve NCRE grid entry conditions by:

• Guaranteeing renewable energy projects the right to sell at spot or node prices.
• Fully or partially releasing NCRE power stations with surpluses under 20 MW from transmission tolls.
• Allowing small (under 9 MW) power stations into distribution networks.

• A recent joint study by the National Energy Commission and the National Irrigation Commission shows that some 290 small canals and dams owned by irrigation canal user associations could potentially generate at least 850 MW.
• Recent amendments to the Water Code have enabled a vast number of mini-hydro and run-of-river power stations.
• CORFO is funding more than 50 related feasibility studies.
• These projects, which could potentially generate more than 470 MW, would require over U$950 million in total funding.
• Proponents are mostly water right owners and irrigation canal user associations. Some projects are currently under construction, adding close to 132 MW.

Source: National Energy Commission (CNE), National Irrigation Commission (CNR), Production Development Corporation (CORFO).

• According to Lahsen (1979) and the National Geology and Mining Service (SERNAGEOMIN) (2006), the Chilean geothermal potential stands at 16,000 MW over 50 years.
• Despite these promising estimates, exploration is limited and electric power has yet to be generated from such sources.
• Recent approval of Law 19657 is expected to improve this situation.
• The Law establishes a system of concessions for geothermal energy exploration and development.
• The Law regulates private sector participation in geothermal energy exploration and development.
• The Law and its regulations are applied, overseen and enforced by the Ministry of Mines.
• As of September 2007, the Ministry had granted 21 geothermal exploration licenses and is reviewing 22 new applications.

Source: National Energy Commission (CNE)

• Studies by CORFO (1993) and the National Energy Commission (2003) identified areas with strong wind energy potential, notably:
• The seaboard nationwide, and Flatlands near the Andes Mountain Range.
• Other areas with strong wind energy potential include Antofagasta, Coquimbo, Valparaíso, and O’Higgins.
• CORFO is funding more than 35 wind power projects. Some are under construction.
• Two projects have gone on stream. One feeding the Central Power Grid has an 18.15 MW installed power generating potential.

Source: National Energy Commission (CNE), Production Development Corporation (CORFO).

A study on Forest Biomass Potential shows that the nationwide aptitude for power generation from planted forest waste (based on 50 to 75 percent use rates) stands at an estimated 310 to 470 MW.

This potential is concentrated in Maule, Bío-Bío, and Araucanía regions, the country’s forest industry nerve center and site of the largest planted forest expanses.

Source: National Energy Commission (CNE), GTZ, Forestry Institute (INFOR).

Featuring some of the highest levels of solar radiation worldwide (4,800 Kcal/m2/day on average), the north of Chile is a particularly viable venue for solar energy projects.

As such, a tracked solar radiation measurement station was installed in July 2008 in Pozo Almonte, a desert town in Tarapacá, northern Chile. These measurements are intended to determine the global and direct solar radiation potential for eventual solar energy development in the region.

The station was funded by the German Agency for Technical Cooperation (GTZ) as part of an NCRE Project implemented by the National Energy Commission and GTZ under a standing agreement between Chile and Germany.

The station measures and records the following data:

1. Tracked global solar radiation
2. Tracked diffuse solar radiation
3. Global horizontal solar radiation
4. Calculated direct solar radiation (global minus diffuse)
5. Ambient temperature
6. Wind speed
7. Relative humidity

CORFO provides incentives for a range of industries to adopt CDM programs, including:

• Run-of-river hydroelectric power plants
• Electrical motors
• Solar collectors

RESULT:

• Industries submitted proposals in 2007.
• Support through potential CERs negotiations.
• This line of work will be sustained through the current year in order to:
• Ensure project continuity in the above industries; and
• Include new industries exhibiting development potential.