Chile: the Windy El Dorado, EWEC, Part IV
March 31st, 2009 by 
Chile is essentially a very long coast, with mountains in the back with nice people between the two that have set up the most stable state in Latin America. A great environment to install wind turbines. If you add to that the presence of enough local skilled workers, with a good safety culture – essential in the industry – that comes from the mining sector, and a good grid, then you would for sure assume that there are already plenty of wind farms up and running.
Well no. As of last December, only one was operational: a mere 18 MW owned by Endesa (of all utilities). The main reason of this seems to be the lack of a wind cartography.
But the government is supporting the industry with a target of 15% non conventional renewable energy by 2010. This backing is particularly consensual since Argentina has proved to be extremely unreliable as an intermediary in the supply of natural gas from Bolivia. Hence, aside from LNG terminal being developed, the government and private developers are now performing wind measurements campaigns and signing purchasing contract for turbines.
This is still a burgeoning market, hence there are plenty of opportunities to seize both offshore and onshore, also in carbon credit origination. And not only in wind.
|
|
Tags:  Chile Wind | [ Permalink ] |
Chile lacks a mandatory feed-in tariff. Therefore utilities have to meet the 15% renewable portfolio standard (it has been 5%)through negotiation of PPAs, and so far they seem to prefer: a) not to meet the standard, or b) trade carbon credits — it’s much cheaper. Wind and solar generating companies are new, and face the need to convince investors and lenders that they can pay off capex. For the RPS to achieve its goal, Chilean renewable energy generators need feed-in-tariffs to be able to set prices with utilities that are even moderately competitive for both the generator and the distributor. Chilean legislators need a crash course in the realities of project finance, as soon as possible.