Chile’s economy has grown at a fast pace over the past several decades and requires an additional 4GW new power generation capacity by 2016 to keep pace. But dependence on imported fossil fuels makes Chile vulnerable to global market shocks, threatening stable growth. While fossil fuels currently account for 74% of Chile’s primary energy supply, the government is highly committed to using its vast untapped solar, wind, hydro, and geothermal resources to tackle the domestic drivers of climate change. It has set a target of doubling non-conventional renewable energy capacity from 2012–2022. Achieving its ambitious goals will require not only policy actions and budgetary commitments, but also market support to stimulate investment.
...the percentage of energy that is imported, accounting for over 50% of the country's imports
The government of Chile has designed a plan that taps US$200 million from the Clean Technology Fund (CTF) to address key risk, cost, and liquidity barriers by providing concessional financing and technical assistance intended to stimulate the development of Chile’s solar power and energy efficiency markets. Chile’s CTF investment plan was drafted under the leadership of the government in coordination with the Inter-American Development Bank (IDB), members of the World Bank Group (IBRD, IFC), and key Chilean stakeholders. Chile’s CTF funds are expected to leverage over US$1 billion.