Chile-GTZ Renewable Energy Project

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GTZ is working with Chile on this project with the following objective: "The project helps non-conventional renewables to gain a more significant role in maintaining a sustainable electricity supply in Chile. Political acceptance and the investment climate for supplying the grid with electricity generated from renewable sources have been improved. This contributes to achieving the energy policy objectives of the government in respect to increased diversification, a more secure supply, and greater sustainability in the energy sector."

Results Achieved

"The new Chilean Government plans to raise the proportion of non-conventional renewable energy to 15 percent of installed power plant capacity by 2010.

Regulations governing renewables were prepared with project support and became effective at the beginning of 2006. They regulate grid access for power plants of up to 20 MW capacity and their integration into the energy market, thus creating new incentives for investment. The technical standards for grid connection have also been drawn up. The new regulations improve the economic and legal conditions for RE projects and facilitate entry into the market for new actors and investors.

A more enabling environment in conjunction with new promotion instruments developed by CNE jointly with the economic development institute CORFO have given rise to a marked increase in interest among private investors and project developers. At present, more than 40 projects with a total capacity of about 200 MW are receiving support (mini hydropower plants, wind energy plants, biomass/biogas plants, geothermic projects). These were selected on the basis of competitive tendering for assistance funds designated for preliminary studies. The procedure will be repeated owing to the considerable success of the first competition.

Information and training activities offered by the project have further encouraged the market to invest in RE. Training measures have brought the level of services offered by local providers – in wind measurement for example – up to international standards. Reliable methods of measurement and results reduce the investment risks for investors and banks when financing planned wind energy projects. An improved database, for instance on the energy recoverable from renewables, is not only useful for investors but provides sound arguments for increasing the political acceptance of renewable energies."


  1.  "Renewable Energy in Chile"