The global crisis we hear constantly in the media and we perceive and suffer in our businesses, becomes a business opportunity in some countries in the Americas. They say that the global crisis is simply a rearrangement of wealth, or a balance of trade balance, and in the middle of the scale, countries such as Chile and Peru, enjoy such as Chile, a demand growth of 6%. Santiago is also reported to have cranes working, something we were very used to in Spain not long ago. The fact is that many Spanish companies are seeing real opportunities across the ocean to save their businesses, and they make the most out of conferences like the one held yesterday in Madrid. Organized by the company Saypower the conference addressed business opportunities in the Andean countries, and gathered speakers from various companies currently developing projects in these countries that therefore have extensive knowledge about the advantages and disadvantages of investing in major projects.
According to Manuel de Castro, from Nexer Renovables, Chile has a good legal and economic situation and increasing broad energy needs. A great solar resource with radiation over 2,500 kWh/m2 and a market price of between 100 and 150 $ MWh. Two power distribution systems operate independently. The installed generation capacity is 16,000 MW, of which 75% corresponds to the SIC, the electrical system of the south, where Santiago is located, that generates power through coal and hydro, and the remaining 25% corresponds to the SING ,the electrical system in the north, which only generates power from coal and fossil fuels.
Currently the average growth in demand is around 6-7% (100.000 GWh for 2020), and requires new generation for 8.000 MW to 2020. It is worth nothing that the mining sector consumes over 37% of demand.
If we add that Chileans are very conscious of the need for non-
conventional renewable energy, as they call it there, and that radiation is 30-40% higher than in Spain, we have a fertile ground for PV, which is very competitive and quick to install. There are over 2,000 MW under development. In addition, the prices are very high (no subsidies). In the SING between 90-100 $ MWh, and in the SIC between $ 140-160 MWh. The problem arises when we have to find the buyer, we must choose between large consumers (mining companies), distributors, or wholesale market which is regulated by the CDEC. Mining companies are still somewhat reluctant to purchase this kind of energy and power companies are starting to launch energy bid packages.
As for wind energy, it is a technology that is more largely introduced in Chile, although there is still very little capacity installed. Over 1,500 MW are under development.
Procedures: Like in Spain certain of the procedures are similar, such as environmental impact statement, and others, such as application for soil, differ somewhat. However fees are not very high for building permits. One big difference is that in Chile it is compulsory to perform a preliminary study of the connection line.