Logan Marshall Green Business

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Although Chile’s renewable potential is often described as world class because of its vast deserts, vast coastline and numerous volcanoes and rivers, plus the proven wind capacity, making it a potentially lucrative country for investors in these energies, still lacks the industry to really take off. Under legislation enacted by former President Michelle Bachelet in 2008, 5% of all energy injected into the grid must come from renewable sources, a percentage that gradually raised to 10% by 2025. However, most believe that this is not enough. A 2008 study co-written by University of Chile, found that 40% of the country’s energy could come legitimately from renewable sources by 2024. The current energy minister, Ricardo Raineri, said in January that the country had potential 25GW of renewable and hoped that 20% of all energy come from clean sources by 2020. According to long-term studies, 10% of all energy generated in the country could come only from wind by 2030.

Similar studies conducted by the National Energy Commission (CNE) in conjunction with Germany’s GTZ revealed that Chile has 200GW of solar thermal capacity installable north. Given this enormous potential, “Chile [would be] the first in the world in which solar energy can become fully competitive technology,” said an official of the CNE, Christian Santana. “We believe that Chile has the potential to accommodate the increased deployment of renewable energy in the region,” he told BNamericas in an interview with the lawyer of the NGO Earth Justice, Andres Pirazzoli.

THE EUROPEAN EXAMPLE
Just by looking at the example of Europe, which for many reasons do not have the same resource that Chile, one can see how you can exploit and commercialize renewable energy. EU plans that 20% of their energy comes from clean sources by 2020. Some countries like Denmark, Portugal and Austria expected the figure is closer to 30%. Almost 50% of Sweden’s electricity come from renewable sources by 2020, according to the website Europe’s Energy Portal. Of course, Europe has a much more mature energy market and it is difficult to compare levels of economic development. Likewise, the role of regulators in Europe is crucial at the time of reaching these goals. In particular, Germany and Spain have introduced innovative power rates that promote economy and enable significant investment sector.

LOOKING FOR THE RIGHT PRICE
Most analysts agree that the law passed by the Bachelet government is not enough, and say it is impossible to promote the renewable energy sector in Chile without similar policies to those in Europe. “Feed-in tariffs have been the policy more attractive and successful to date. With them is guaranteed a return for investors and project developers, consultants told BNamericas Gouri Kumar of America, Frost & Sullivan. “Last year, Germany implemented a super power rate, and many countries try to emulate. I do not think it is enough to feed rate, but also need to set a specific target for geothermal power to give a big boost to the industry, “he said. Mainstream Renewable Chris Matthews, Irish renewable energy company looking to invest U.S. $ 1.000mn sector projects in Chile, the law states that only promotes the self-Bachelet and makes market entry of renewable companies. “If you do not solve the current regime, wind energy will be a niche for vertically integrated companies and created for public relations purposes rather than for companies that come with the prospect of introducing a vibrant and competitive industry,” he said. Others argue that a fine of $ 30/MW infringement is too low.

FUTURE CHALLENGES
However, it is unlikely to have a supply fee. Former Energy Minister Marcelo Tokman said repeatedly that it would not consider this option, and the new owner, Ricardo Raineri, did not refer to a change in policy. However, there are other alternatives such as net metering and tax incentives. Raineri said in an interview in January he supported policies such as net metering, which reward consumers for using clean energy. “We think there are some aspects of our legislation to be improved,” Raineri said local media. “We need to give certainty to investors in the development of these technologies will have stable prices to enable them to properly compensate their investment, and expand areas of competence in the industry.” “It is unrealistic to speak of a power rate in Chile, at least not at this moment,” said Pirazzoli. “We believe that the Chilean Congress should explore the structure of net metering, rebates and exemptions taxed and analyze something like” To be fair, the Chilean renewable energy industry has made great strides. Before 2007, there were only 2 MW of wind generation in the country, while the end of 2010 could be installed 200MW. The first solar plant in the country, developed by the Spanish Solarpack, received environmental approval in January. The new owner has accelerated the process of providing geothermal, and numerous national and international companies are exploring the vast potential. Likewise, investments in biofuels are increasing rapidly, and small hydro are also an important energy source in southern Chile. However, taking into account the huge hydroelectric project HidroAysén 2.75 GW, which should overcome the problems with the delivery of government permits for Piñera, and numerous coal and gas plants that are in their final stages of development, still uncertain whether renewable capacity, which is still expensive, you can truly compete in a saturated market.

For several months we are being bombarded by a lot of news, both national and international, that we set out the great “chaos” and confusion generated in Spain with the different autonomous communities, also called by Jose Maria Aznar, mini-states. In line with all the news I want to shell the merits: it is true that the Autonomous Communities, with spending increases in some cases totally out of control-, high job creation in many cases unnecessary and unproductive ” and the lack of a plan for future medium to long term structural investments to promote education, security, immigration, health and other social issues today sail drifted to blows with the “uncertainty”, the “country risk “” sale of debt “and especially unemployment, but the problem is another.

From the above seems very reasonable to address without delay the status of autonomous, their powers, funding and above their current status unknown, in many cases, by the Government. The reality is that it is very difficult to solve something unknown and the extent of which we ignore.
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I am surprised at people’s ability to ignore, forget or revise history, the master of the errors of mankind. And listening to the leaders talk about the crisis sentences bother me as that “there was a similar global economic crisis for 80 years.” I think the economic crisis of 29 is not comparable to the current, which is “a funding crisis.”

I am reminded of a pleasant chat about the current crisis, I mean not only the economic-with a wise friend and connoisseur of history. I reasoned in a simple but powerful, we are facing a change of era, the end of the era of the West, capitalism, consumption of “progress” over the values, the end of American empire. This comment by a reasonable person, nothing catastrophic, left me uneasy.
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