Since becoming one of the first countries in the world to reform its energy market to permit renewable projects to compete directly with other sources, investors have recently turned to Chile for its vast potential within the renewable energy market.
Chile has transformed itself from a country dependent on fossil fuel imports to a self-sufficient center of renewable development and investment.
In just two years, Chile has become the region’s leading solar market, with the development of 29 more solar farms to supply the central grid, and even more in northern Chile to supply the country’s booming mining production.
With the latest developments, the Chilean government is to announce plans for a further 52 wind projects throughout the country.
Chile is now considered to be one of the world’s top renewable energy markets, despite its relatively small size. World Bank figures estimate that since 2012, the sector has attracted investments of US $9.2 billion – almost double the figure Chile received in the previous 20 years combined.
Chile has also recently been placed fourth in Ernst and Young’s Renewable Energy Country Attractiveness Index (RECAI) – a quarterly publication ranking 40 countries according to a number of macro, technology and market specific indicators.
Chile also has vast potential within the wave and tidal energy industry – though more investment is currently needed in technological development – and experts have particularly noted Chile’s geothermal power generation potential due to its intense volcanic and seismic activity.
With its unparalleled natural resources and government’s commitment to renewable energy development, Chile’s energy market is set to continue attracting large sums of foreign investment.