Renewable Energy

Renewable Energy An update on the Chilean Experience Technical Expert Meeting: Renewable Energy

Andrés Pirazzoli Oficina de Cambio Climático Ministerio del Medio Ambiente - CHILE

About Chile

Source: Invest Chile, 2012.

• Chile has a modern, dynamic economy, with stable policy and regulatory frameworks and a market-based growth orientation. • The economy has been growing at a fast pace and GDP is expected to grow at 4% until 2030. Chile’s economy is characterized by an increasing share of manufactured products and by increasing exports of minerals and foodstuffs.

Electricity Market 2011- Net power generation SING Installed Capacity: 4.344 MW Max Demand.: 2.162 MW Power Generation : 15,9 TWh Thermal Generation: 100% Population: 6%

Total at country level: 62 TWh Chart Title SIC Installed Capacity : 12.488 MW Max Demand.: 6.881 MW Power Generation : 46,1 TWh Hydro : 45% - 65% Population: 92%

Coal 34,7%

Natural Gas 22,9%

Aysén Installed Capacity : : 49 MW Max Demand.: 20 MW Power Generation : 134 GWh Population : 1%

Magallanes Installed Capacity : 89 MW Max Demand.: 40 MW Power Generation : 269 GWh Population : 1%

Derivatives 7,1% NCRE 2,9% Large Hydro (Dams) 20,8%

Small Hydropower 0,9%

Wind 0,5%

Bioenergy 1,5%

Large run of river hydro 11,5% Source: CNE, CDEC and CER

80% GHG Inventory ENERGY

 LARGE POTENTIAL legal basis Need to enable implementation and increase Know how Legal target: 20% RE in 2025 Feeds into Chile´s: 2020 GHG BAU deviation goal 2015 contribution? NRG Independence

Renewables in the Electricity Landscape in CHILE • Chile is energy DEPENDENT/IMPORTER • Law 20.257 TARGET. 10% by 2024

• 2013 Law 20.698 doubled our target to 2025 • Currently 5.9% of our grid is NC-RE • December 2013: 1.117 MW installed capacity

• Targets mean aditional 6 to 6.5 GW by 2025 • Robust coordinated sustainable institutionality • Innovative approaches to project financing and subsidies • Outstanding UNTAPPED potential: at least 17GW on the works • Projected to surpass 8GW in 2025.

Some relevant numbers

SUPPORTIVE PROGRAMS INVESTMENT

- SSRE NAMA - PMR - PSF

Challenges

• CDEC - Dispatch and Load Centers: urgent need to strengthen capacities for the implementation or variable energy sources (eg. Solar, Wind) in order to . • Urgent need to transfer suitable technologies that help TAP the potential • Chile has focused on LARGE centrally connected players • Can shift towards small scale distributed sources • Smart grids that help

Gracias. 11