Chile’s energy ministry plans to initiate four tenders for non-conventional renewable energy (NCRE) projects this year. Two of the tenders will focus on the development of solar energy projects in the north of the country, with around US$10m in government loans set aside.
The first tender, planned for July this year, will offer companies the right to construct a 500 kW photovoltaic solar energy plant near the town of San Pedro de Atacama in region II. Several projects have already been proposed for the area, recipient of some of the highest solar radiation levels in the southern hemisphere, by Chilean firm Element Power. The ministry also plans to launch a bid round in the third quarter this year for development of Latin America’s first concentrated solar energy plant.
Under existing plans interested firms will present projects with a minimum capacity of 10 MW. A site for the construction of the plant has already been set aside by Chile’s public lands ministry in northern region III. Over US$10 m in government financing will be made available to the tender winner.
A further tender planned for October will offer an unspecified amount of money to geothermal energy companies in order to finance exploration and drilling costs. A total of 76 exploration concessions and six production licenses have been granted to geothermal companies by the government over recent years, with a decision pending on a further 83 application. The country’s first functioning plant is expected to enter operation in 2015.
A final tender through which the government will offer up to US$10 m to fund the development of NCRE pilot projectshas been planned but no date has been set.
Around 430 MW in NCRE capacity is currently in place across Chile’s central SIC and northern SING power grids, mostly in the form of mini-hydro and wind power plants.The government recently set a 2020 goal of 20% for capacity on the national grid from NCRE sources.
