Chile leads Americas in renewable energy, with green hydrogen top of the list

Bloomberg New Energy Finance’s “Climatescope 2021” ranks Chile as the “top country in America” for renewable energy investment, beating out Brazil, Canada, and the United States.

Chile retains its status as the “best country in America” to invest in renewable energy for the fourth consecutive year, a position it has held for at least two decades. Additionally, it is ranked second in the world among emerging economies, behind India.

The research identifies the following goals for 2020: the entry of 4,600 million dollars in alternative energy investments, with solar and wind power taking the lead. They add the 2035 target of commercializing zero-emission vehicles, which is enshrined in the national provision on electromobility. Additionally, they value the 2021 enactment of the energy efficiency law and heating and cooling strategy.

“This is the decade in which Chile will solidify its position as a clean energy nation. With increased targets for renewable energy and green hydrogen, we will clean up our country, contribute to climate change mitigation, and improve the quality of life for all Chileans “Juan Carlos Jobet, the biminister of energy and mining, welcomed this honor. “This is an acknowledgment of our energy industry and its strong institutional framework, which enables us to attract long-term investments,” he added.

Still on the subject of energy, we’ll discuss the gigawatts required to manufacture green hydrogen in the country, an interesting fact for the electrical sector, particularly for investors. According to the National Energy Commission’s Preliminary Demand Report 2021-2041, demand will hit 199 GWh in 2023, increase to 1,038 GWh in 2027, and reach 40,636 GWh in 2041.

Carbon neutrality is achieved through the use of alternative fuels, particularly wind and solar. Continuing with the market projections, the analysis says that 3,377 GWh will be required by 2030, 13,481 GWh by 2032, and 23,192 GWh by 2034.

Simultaneously, the publicly available Preliminary Report of the Long Term Energy Planning Process (PELP) 2023-2027 details the methodology used to create the “energy scenarios, their contents, and their results are presented in an exhaustive and comprehensive manner,” particularly that of “Towards Carbon Neutrality.”

Chile and South Korea have signed a Memorandum of Understanding (MoU) to exchange experiences and expertise about the production, storage, transportation, distribution, and use of green hydrogen, thereby promoting technology implementation. By the end of this year, Korea hopes to generate 20% of its energy from hydrogen. Meanwhile, Chile has set a target of at least 70% zero-emission fuels in non-electric energy end uses by 2050, and 15% by 2035, including green hydrogen and its derivatives.

This is one of numerous agreements already in place with the Singaporean Ministry of Energy, the Port of Rotterdam, and the Ports of Antwerp and Zeebrugge. They intend to investigate the technological and commercial viability of supply routes connecting Chile and Latin America to Asia and Europe.

Finally, and in a nutshell, the National Energy Policy (PEN) contextualizes the national perspective on what is expected of this sector and its impact on the lives of residents across the country. It took two years to update and involves over 1,200 people from across the local region.

Climate change is being incorporated into energy strategy for the first time: it incorporates green hydrogen and electromobility as tools for reducing emissions in the most productive sectors. It includes guidelines for 2030, 2040, and 2050, including the following: renewables contribute 80% of electricity generation by 2030 and 100% by 2050; energy generates 100,000 new jobs by 2030; heating contributes 70% of pollution caused by particulate matter 2.5 by 2050; all urban centers use 100% dry firewood by 2030; and gender parity in management positions and remuneration in public and private organizations in the energy sector by 2030.

PEN’s objectives are to position Chile as a leader in climate ambition; to ensure that energy improves the quality of life for Chileans; and to develop a new productive identity for Chile through energy. These objectives are founded on two pillars: the need for an efficient and resilient energy system and the need to continue progressing toward a new method of constructing public policy.

Whoever feels this is a random event should consider the following two extremely definite facts: Chile now has about 10,000 MW of non-conventional renewable energy (NCRE) installed and another 5,000 MW under construction. Additionally, it is driving the region’s electricity sector’s decarbonization, and the region’s major national organizations are committed to achieving a zero-emission energy transition.