Report: The Future of Chile's Energy Sector Lies with Renewable Energy (The Energy Collective)
However, geothermal energy lags behind other renewables
The Chilean Renewable Energy Center recently released its
annual report for 2013, and the numbers send a clear message: Chile’s non-conventional renewable energy sector is where the action is. While conventional energy projects –coal and large hydro– linger in judicial appeals and administrative reviews, developers are advancing solar, wind and other renewable projects with gusto. If the new government can help remove some of the remaining obstacles to renewables’ growth, we can expect these numbers to be even higher next year, proving that the future of Chile’s energy sector is in clean, sustainable and renewable energy.
Of course, not all of the renewables projects in the pipeline will reach the operational phase. Many obstacles remain that this sector will have to overcome in order to compete on a level playing field with the conventional energies. For example, the bidding process for long-term purchase contracts currently favors conventional energy projects, and without signed contracts it is more difficult for renewable developers to get financing for their projects.
The geothermal energy industry in particular faces hurdles such as the longer construction period for its facilities and higher up-front costs during the risky drilling phase of the project.
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