Self-Supply Renewable Energy in Chile
Title: Self-Supply Renewable Energy in Chile (SSRE)
Commissioned by: German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) and UK Department of Business, Energy and Industrial Strategy and the European Commission as part of the NAMA Facility
Lead executing agency: Technical components: Chilean Ministry of Energy; financial components: Chilean Economic Development Agency (CORFO) (implemented by KfW Development Bank)
Overall term: 2016 to 2020
Against the backdrop of rapid economic growth in Chile, the principle source of greenhouse gas emissions in the country is its energy sector. At the same time, there is great potential for reducing CO2 emissions through the use of renewable energies.
Chile is adopting a proactive approach to climate change mitigation. It has signed the Copenhagen Accord and thereby committed itself to achieving a 20 per cent reduction in greenhouse gas emissions by 2020 relative to the 2007 level.
A conducive environment has been established for the integration of self-supply renewable energies into Chile’s energy supply system.
The project promotes Nationally Appropriate Mitigation Actions (NAMAs), which are designed to reduce greenhouse gas emissions. To this end, short-term measures will be undertaken to supplement the energy supply infrastructure with self-supply renewable energy systems. Using two components, one financial and one technical, the project dismantles barriers to development and helps to establish a conducive environment for the emergence of a new industry. The financial component is managed by KfW Development Bank and seeks to build a portfolio of projects that will attract funding, and to create incentives for investment. The technical component is aimed at developing local expertise and raising awareness of the technical and economic potential of self-supply renewable energies.
Strengthening an emerging industry that uses self-supply renewable energies on a larger scale is the key to unlocking potential for generating the desired changes. Creating suitable instruments will keep the financing costs of potential investors down and facilitate access to funding. Additionally, efforts to improve basic knowledge among political decision-makers and consumers and within the industry will help to overcome technological barriers and any reservations.
The project aims to mobilise private investment and public funding and is striving to achieve a reduction in emissions of up to 1.5 million tonnes of CO2-equivalents. It is creating additional environmental benefits by reducing the emission of pollutants and is also improving energy security for the private sector and helping to create jobs.