Monday, October 17, 2016

Chile: World Bank Gives $1.78 Million for Geothermal Energy Development

World Bank Supports Geothermal Energy Development in Chile to Boost Energy Security (News Release)

The World Bank Board of Executive Directors approved today a US$1.78 million Clean Technology Fund (CTF) Grant to strengthen the Chilean Ministry of Energy’s capacity to further develop the country’s geothermal sector and improve its energy security.

The grant will contribute to Chile’s Energy Agenda (Agenda de Energía. Un Desafío País, Progreso para Todos) and the Energy Policy 2050, which aims to boost the use of non-conventional renewable energy (NCRE) and reduce the cost of electricity. Chile’s abundant geothermal potential provides a good renewable energy option to further diversify the country’s power generation mix, and reduce price volatility.  The Government of Chile has made a concerted effort to develop its nascent geothermal energy industry, but despite what appeared to be a promising start, a number of issues stymied exploration investments.

The Ministry of Energy will be the lead implementation agency, with support from the International Cooperation Agency of Chile (AGCI) within the Ministry of Foreign Relations. The US$1.78 million grant has a four-year implementation period.