NAMA on Self-supply Renewable Energy in Chile (SSRE)

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1 NAMA on Self-supply Renewable Energy in Chile (SSRE) Gerardo Canales G. Head of Project Division Chile s Renewable Energy Center Warsaw, November 2013

2 National Policy Context Chile will take nationally appropriate mitigation actions to achieve a 20% deviation below the Business as Usual emissions growth trajectory by 2020, as projected from year To accomplish this objective Chile will need a relevant level of international support. Energy efficiency, renewable energy, and Land Use and Land Use Change and Forestry measures will be the main focus of Chile s nationally appropriate mitigation actions Formal commitment made at Copenhagen Agreements in 2010

3 Objective To promote the incorporation of renewable energy systems for self-supply in Chile by creating adequate financial and technical conditions for the early stages of development of this emerging industry. Biodigestors in the agroindustry SHW in hotels PV pump for irrigation

4 Context Problem High energy prices Dependency on imported fossil fuels Raising GHG emissions Affects competitiveness of industrial/commercial sectors Exposure to international uncertainty of supply Impact on Chilean GHG emission reduction target Alternative Renewable Energy for Self Supply Why? Abundant natural resources for almost all technologies Most technologies are economically competitive under Chilean conditions Mature stage of technical development of RE systems

5 Barriers Financial Human resources Awareness Barriers High incremental costs for some RE tech. Access to loans by commercial banks Lack of bankable project pipeline Lack of access to qualified installers and consulting companies to deliver projects Lack of access to qualified technicians to operate and maintain equipment Company/resource owners do not understand the technologies. Uncertainty of their benefits NAMA proposal Grants for investment Soft loans and guarantee fund Grants for pre-feasibility studies Training and capacity building modules Technical Help Desk Knowledge exchange programme Outreach activities

6 Structure SSRE NAMA Renewable Energy Center (CER) Components Institutions Financial Component KfW CORFO Technical Component GIZ Development of a bankable project pipeline Training and advisory services for financial sector Investment grants Guarantee fund Training and capacity building Technical help desk Knowledge exchange program Grid-connection support Outreach and awareness Monitoring, reporting and verification Activities Expected Outputs Leverage of around USD$100 million GHG reduction of 2 million tons of CO2e Approximately 112 electric projects (average size of 270kw) and 15 thermal projects (average size of 2,1MW) 500 people trained 1000 projects supported trough the technical help desk 50 projects supported for connecting to the grid At least 60 media appearances and public activities to increase awareness All SSRE projects incorporated into de MRV platform

7 Complementary Programs International Funding National Funding Regional Funding CTF Investment Plan for Chile, SSRE component ( ). USD49 million GEF project to support biogas projects in the agro industry. USD1.7 million Ministry of Energy SSRE investment grant. USD10 million Ministry of Energy, investment grant for SSRE in Agriculture. USD 3.5 million Regional Governments support for SSRE programs. USD 1 million up to Sept. 2013, but couple more under evaluation SSRE NAMA

8 Additional support International Funding BMU/ICI Mitigation Momentum support for the development of the SSRE NAMA Prosperity Fund to implement a MRV platform IPMCC fund for the development of a Protocol for the adequate use of the MRV Platform

9 Thank you Contact Information: Gerardo Canales Head of Project Division Renewable Energy Center - Chile

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