Chile vuelve a subir en ranking de países atractivos para las renovables
The Renewable Energy Country Attractiveness Index (RECAI) published by EY showed Chile in the 15th position, growing one place from the latest report of August. According RECAI, the new country target that doubles the amount of renewable energy from 10% to 20% by 2025 is good news for the new developers.
“The doubling of Chile’s renewable energy target has generated significant headlines in recent weeks, as it should. The requirement for utilities with more than 200MW of capacity to generate at least 20% of their energy from renewable resources by 2025 was signed into law on 14 October, replacing the previous obligation to secure 10% of renewable energy by 2024 (both excluding hydropower plants over 40MW). This is equivalent to around 6.5GW of renewable capacity, up from 1GW currently”, it is informed in RECAI.
The announcement of the new Law came just at the moment that SunEdison is almost finishing its 100 MW Amanecer Solar CAP plant that will be the largest PV farm in Latin America. RECAI also mentioned a French solar project for 70MW at a cost of US$200m; both unsubsidized projects.
Current renewable generation is 6.51% of the main electrics systems according Renewable Energy Centre (CER) and the installed capacity reached 1,074 MW that represents 6.09% of the total Chilean matrix. RECAI adds that the change of the new lay “is good news for developers, since it effectively guarantees demand for an ambitious amount of clean energy”.
The EY report estimates that the significance of the new target should not be understated, though neither should be overstated: “The 20% by 2025 target represents a compromise after a earlier version of the bill calling for the more ambitious target of 20% by 2020″. The adjust was motivated by the inadequacy of the country’s transmission system to cope with the additional capacity required to meet a bigger target, particularly due the distance of urban centers from solar and wind sites.
It is expected that the shifting of the target to 2025 will give additional time to create a “more robust transmission infrastructure” and the new legislation also will allow for the Government to hold annual auctions to award 10-year power contracts to renewables projects from 2015, it is informed in the RECAI report.
Download here the RECAI of November 2013. [download id=”290″ format=”2″]