Chile ranked 14th in the world in terms of attractiveness as a destination of renewable energy investment

What’s renewable energy?

Hydropower, solar, wind, and ocean energy are used as sources and are considered inexhaustible on a human scale.
Energy from biomass, geothermal energy, and biofuels are also recognized as renewable, depending on how they are used. (*1)

Renewable Energy in Chile

According to an official announcement from the Chilean government, the country has been ranked 14th place in the world (1st place in Latin America) in terms of renewable energy investment attractiveness by Forbes magazine. (*2)

A total of 74 renewable energy projects are expected to be operative in 2023, increasing installed capacity by 4,318 MW, mentioned Pamela Mendez, principal partner at EY Sustainability Services, quoted in the magazine. Furthermore, the central bank declared that the industry would lead the revitalization in the same year.

Today, the Chilean government is promoting clean energy, with the ultimate goals of phasing out 65% of Chile’s coal-fired power plants by 2025 (100% by 2040), achieving 80% of usage of renewable energy by 2030, and achieving carbon neutrality by 2050.

Furthermore, in Chile, there has been a debate within the industry regarding the feasibility of the second stage of renewable energy power plant development, and the Congress has indicated that they are aiming for an energy transition project, which is the next initiative. These seem to be the reasons why the country got ranked this time.

Currently, Chile is mainly developing wind and solar power generation, taking advantage of its geographical features in the north and south. The current renewable energy ratio in Chile is 31.9%. (*3)

The Chilean Investment Promotion Agency (InvestChile) recognizes that northern Chile has the highest level of solar radiation on earth (4,000 hours per year) and has great potential for wind power generation. The state of renewable energy development in Chile is likely to continue attracting attention.

*1:¿Qué son las Energías Renovables?/Chilean government (Spanish)
*2:Chile vuelve al top 15 mundial de mejores países para invertir en energías renovables / Chilean government (Spanish)
*3:チリの電力市場(2023年現在)/JOGMEC (Japanese)