Decarbonisation of the energy sector in Chile

On behalf of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), the German Society for International Cooperation (GIZ) is supporting the Chilean government within the framework of the International Climate Initiative (IKI) in accelerating the initiated energy system transformation and strengthening the country’s active policy towards climate neutrality. The main partner is the Chilean Ministry of Energy.

The project focuses on the expansion of renewable energies and the decarbonization of the energy sector. GIZ supports the Chilean government in organizing the UN Climate Change Conference COP25 and presents already implemented measures from previous projects and new approaches to supply energy.  Furthermore, innovative and sustainable approaches are being pursued for the alternative use of the existing infrastructure of coal-fired power plants that will be decommissioned in the future. The aim is also to combine the significant potential of renewable energies with innovative future topics, such as the sustainable production of hydrogen, in order to use them effectively. In addition, the social compatibility of the coal-exit and social acceptance of renewable energy projects in general, should be more strongly promoted.

The project is intended to help Chile achieve its ambitious climate protection goals. In its National Climate Contributions (NDC), the country has committed so far to reduce its use of emissions per GDP by 30 % by 2030 compared to 2007.

There are various activities planned throughout the project, each contributing in different ways to the project objective of the complete decarbonization of the Chilean energy sector.

The COP25 in December 2019 includes a variety of resources and activities, including an exhibition booth where completed project objectives will be presented to large audiences, and innovative solutions will be demonstrated. In particular, best practices and experiences from previous projects will be demonstrated as an orientation for other countries in comparable situations.

The consequences of the coal phase-out will be addressed. They include the social compatibility of the shutdown of coal-fired power plants, the development of a necessary infrastructure for the introduction of a carbon market, and a regular exchange between the Chilean Ministry of Environment and the Ministry of Energy.

Furthermore, measures for expanded use of renewable energies will be implemented, including normative and technical framework conditions, the promotion of better social integration of large-scale projects and the development of innovative concepts for the energy sector. Thus, Chile’s enormous renewable energy potential will be used as a driver of economic development, among other things.

The expected concrete effects of the project are to expand the use of renewable energies further, and to contribute to the complete decarbonization of the energy sector. Therefore, the introduction of innovative technologies for energy storage and sector coupling play an important role.

It is expected that the emission value will be reduced from the current 0.43 tCO₂eq/MWh to 0.38 tCO₂eq/MWh by 2022, combined with an increased share of non-conventional renewable energies (ERNC) in electricity production to 25%. This should result in at least 13 million tCO₂ avoided GHG emissions by project completion.