Investments in alternative renewable energy sources in Chile over the next decade will be at least $8.0 billion, the Energy Ministry said Monday.

Chile aims to reduce its greenhouse-gas emissions by 20% by 2020 and as such, plans to have 20% of its energy matrix based on alternative renewable-energy sources, such as solar, wind, geothermal or mini-hydro, by that year.

Only around 3.9% of Chile 's installed capacity currently comes from alternative renewable energy.

Considering an average cost of $2,000 a kilowatt in mini-hydro or wind, building the 4,000-5,000 megawatts necessary to achieve the 20% goal by 2020 will require investments bordering on $8.0 billion, the Energy Ministry told Dow Jones Newswires.

As Chile has high levels of seismic activity, some of the highest on earth, it has considerable potential for developing geothermal energy, which is harnessed from the heat stored beneath the earth's surface.

Studies suggest geothermal energy in Chile could provide some 16,000 megawatts, which would be more than the nation's current installed capacity.

Also, Chile 's extensive north, which has the driest desert on earth, parts of which almost never receive a drop of rain, is an ideal location for developing solar energy.

Meanwhile, the Andean nation's abundant streams and rivers in the central and southern regions provide the raw material for mini-hydro electric plants, while the constant winds in parts of the north are leading to investments in wind turbines.

Renewable energy company Vestas Wind Systems AS (VWDRY, VWS.KO) recently teamed up with the Chilean Chacra family to invest $250 million to install 120 megawatts of wind turbines in northern Chile .

The project is the first phase of the larger 500-megawatt Talinay wind park, which will require a total investment of over $1.0 billion. Current installed generation capacity on Chile 's power grids totals 14,955 megawatts, of which 56% comes from coal-fired power plants and 44% from renewable-energy sources. Conventional hydroelectric plants account for the bulk of Chile 's renewable energy.

The country's power grids are the northern SING grid where the vast majority of the nation's bustling copper mining industry resides, the central SIC grid, which supplies energy to over 90% of the country's population, and two smaller grids in the far south.

Διαβάστε ακόμα