Minister of Energy Ricardo Raineri
The Ministry of Energy announced yesterday that it will start the bidding process for 21 geothermal energy exploration licenses in Chile, between the regions of Tarapacá and Los Ríos. This is the latest of a series of attempts to make Chile the main destination of international geothermal investment.
Minister of energy, Ricardo Raineri explained that geothermal energy is the “clean and sustainable energy source that Chile needs to boost economic growth, create jobs and defeat poverty.”
According Raineri, Chile hopes to award 50 additional licenses by the end of this year, and 120 over the next two years. By 2020, Chile hopes that 20% of its electric power will come from geothermic sources.
Chile likes to market itself as one of the most open energy-markets in Latin America. A Privatization spree during 80’s insured that the State’s role was regulatory, at best, and that energy-companies could enjoy a relatively open market without investment obligations.
Now the Minister of Energy is seeking to further open the market, by modifying Law No. 19.657 about geothermal energy concessions. Reforms to the law, which as is regulate the exploration and exploitation of the concessions that can be awarded by the government would speed up the process of granting concessions and, according to Raineri, “eliminate the difficulties” to be dealt with by international investors. The bill that would reform Law No. 19.657 should be voted on by congress in the coming weeks.
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