CSP Today Guide: Chile 2013


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Download the full guide for free at: http://www.csptoday.com/latam/en-content2.php

There has been much talk and interest over the past months about the Chilean CSP market. CSP Today is currently organizing for the first time an event in Latin America that will take place in July in Antofagasta, Chile. As part of the research efforts, CSP Today has compiled a free-to-download guide with the must-have information on how to develop and build CSP projects in Chile. The guide includes detailed information about the current status of the energy market in Chile, future growth of energy demand and solar resources.

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CSP Today Guide: Chile 2013

  1. 1. Organized by:CSP Today guide: ChileAs part of the launch of CSP Today LATAM 2013 (July2013, Chile), CSPToday is providing you with an exclu-sive guide on the opportunities for CSP in Chile, in orderto prepare your business to take maximum advantage.CSPToday LATAM 2013 is the only event in Latin Amer-ica where the CSP industry meets the mining industryin order to collaborate on solar thermal development.Over 2 days, the conference will address the key topicsto progress in the Chilean market.CSPToday LATAM 2013 will provide you with all the rel-evant information to develop, build, finance and main-tain a CSP plant. One of the most important aspects isto promote the dialogue between mining companiesand CSP developers.Chile, Julywww.csptoday.com/chileTable of contents.1. The potential for CSP in Chile2. CSP projects in Chile a. Minera elTesoro b. María Elena c. Pedro de Valdivia d. Mejillones3. Interviews a. Carlos Finat, ACERA b. Diego Lizana Rojas, Collahuasi c. Rodrigo Escobar, PUCC y DICTUC d. José Manuel Ramos, Ibereólica1st Latin America Concentrated SolarThermal Power Conference & ExhibitionTo get more information about the CSPTodayLATAM conference, visit: www.csptoday.com/chileB U S I N E S S I N T E L L I G E N C EIn association with:CSPToday LATAM 2013Download the full guidefor free atwww.csptoday.com/latam/en-content2.php
  2. 2. CSP TODAY | CSP Today LATAM 2013 | www.csptoday.com/chile • 2B U S I N E S S I N T E L L I G E N C ECSP Today guide: ChileThe potential for CSP in ChileThere has been a lot of discussion about the potentialfor concentrated solar power in Chile. The motivingfactor being that Chile is a country with high energycosts and a rapidly growing demand for energy. Tocontinue Chile’s economic growth it has becomenecessary to secure energy generation from moresources and CSP is the perfect fit. The Great Northregion in Chile possesses one of the highest solarradiations of the world along with a strong miningindustry that requires substantial energy 24 hours aday. In this guide, you will learn about the possibilitiesof establishing a CSP industry in Chile, get analysison the current status of the industry as well as itsdemand for energy, understand recent legislativechanges, and Chile’s interconnected systems..Chile’s Energy Conundrum“Our primary sources of energy are 44 % crudeoil, 10% natural gas, 17% carbon-based fuels, 8%hydroelectricity, 20% wood biomass and an additional1% of other combustibles like biogas and renewableenergy sources,” Sebastian Piñera, President of Chile.During the Presidential election race in 2010 thecurrent President Sebastian Piñera knew that for Chileto realize true prosperity, there was a serious energyissue needed to be resolved. Currently the majorityof energy is imported, which means Chile has one ofthe highest costs of electricity in the world.In 1982 Chile privatized its energy markets and has agrowing demand for energy and a substantial coppermining industry. Today more than 73% of Chile’senergy comes from fossil fuels, 97% of which areimported. Also due to a high percentage of importedenergy, Chile has become very vulnerable to changesin its supply chain and fluctuating energy costs.CSP opportunities, in depth analysisElectricity consumption by origin Electricity consumption by sectorHistoric energy consumption in Chile2010 Electricity consumption in Chile by origin and sectorHydroelectricity33%Residential 16.3%Mining 34.9%Agriculture2.2%Industrial23.9%Others 10.4%4504003503002502001501005001978198819981999200020012002200320042005200620072008Commercial12.3%Natural gas 23%Coal 35%Oil 7%Biomas 1% Wind 1%n Biomasn Hydroelectricityn Coaln Natural gasn OilSample
  3. 3. CSP TODAY | CSP Today LATAM 2013 | www.csptoday.com/chile • 5B U S I N E S S I N T E L L I G E N C ECSP Today guide: Chileexceeding 3800 kWh/m2in the region.In addition to being a great resource of solarenergy, Northern Chile and the Atacama Desert haveseveral characteristics which are favourable towardsCSP technology, including:„„ Large and extended desert lands which arenecessary for thermal solar plants, providing thatthese lands are not being used for other purposessuch as real estate development or agriculture.„„ The close proximity to energy consumptioncentres.„„ High demand for electricity and thermal energy,which is currently being produced in carbon anddiesel plants.The development of CSP plants forminingcompanieswouldhelpreducetheircarbonfootprint and improve the competitiveness ofChilean mines in the international market.„„ The demand for a stable and constant energysupply. Especially in the Great North where theconsumption curve for big mines is steady 24/7,making CSP’s ability to store and dispatch poweran ideal match for energy demands in the region.Nevertheless, there are difficulties in developingCSP plants:„„ Despite having great stretches of land which areappropriate for CSP plants, the heat generatingprojects for mining processes need to be locatedin close proximity to the mines. However this sameland is being exploited for mining opportunities.Thisposes a difficult question as to where CSP plants canbe located and requires extensive analysis on thecost-benefit ratio.„„ Interconnection with the grid (CDIC-SING whichcontrols the northern region) cannot be reserved inadvance and it is granted on a first come, first servedbasis. CSP plants generally require a longer projectdevelopment process compared to that of wind andPV plants, which makes current interconnectionconditions unfavourable for CSP.„„ There are limited water resources therefore drycooling is essential for CSP plants in this area,increasing the price of electricity generated by CSP.„„ As mines consume the majority of energy, CSP mustpresent energy costs comparable to what miningcompanies are paying for their current energy tomake a CSP project financially feasible.CSP Plants in Chile„„ The ElTesoro Plant: This is a heat-producing plantthat Abengoa built and started operating at theend of 2012. It uses parabolic trough technologywhich has a potential of 14MWt and producesheat for the mining industry.„„ The Pedro de Valdivia Plant: This plant beingdevelopedbyIbereólicaGrouphasatotalcapacityof 360 megawatts (MW). It has four power stageseach with 90MW of parabolic trough technologyand several hours of molten salt storage.„„ The María Elena plant: This ambitious megaproject lead by Ibereólica Group, has a totalcapacity of 400MW consisting of 4 towers ofconcentrated overheated steam of 100 MW with13.5 hours of storage.„„ The Mejillones Plant: Little is known about thisplant since its launch by energy giant GDF Suezin partnership with the Solar Power Group. Itcontains a solar power field alongside a coalplant which was already owned by the developerof Mejillones. We are waiting for developmentson the status of the project.Belén GallegoFounder & DirectorCSP TodayChile solar radiation map.Source: GeoModel SolarSample
  4. 4. CSP TODAY | CSP Today LATAM 2013 | www.csptoday.com/chile • 6B U S I N E S S I N T E L L I G E N C ECSP Today guide: ChileMejillonesPedro de ValdiviaMaría ElenaMinera El TesoroCSP Projects in ChileFor more information have a look at the plant profiles in the next section.PlanningConstructionOperationalSample
  5. 5. CSP TODAY | CSP Today LATAM 2013 | www.csptoday.com/chile • 11B U S I N E S S I N T E L L I G E N C ECSP Today guide: Chile1. In terms of energy, what are the major obstaclesfor a mining company?The main challenge for mining companies is assuringclean, safe and reasonably-priced energy over thedecades. The traditional sources of generation usedin Northern Chile, has been based on coal, dieseland gas. These sources are now being stronglyquestioned, given that they are fossil fuels, and thegases produced is part of the Greenhouse problemand increasing global warming.In the present environment, the use of the latesttechnology related to coal or to the developmentof non-conventional renewable energy (ERNC)is being considered as an important solution toenvironmental problems.2. It is said that the mines are resistant to change,because of the problems they’ve had in the pastwith new energies.Why is the mining industryresistant to change and how can CSP adapt itself tothe needs of the mines?When the mines experienced the gas cut years ago,imposed by Argentina, they came face-to-face withtheir extreme dependence on energy, which forcedthem to use electricity more intensively.They turnedconservative because they didn’t want to have tosubmit to rationing and to have continuing problemswith supply.In this respect, mature technologies in developedcountries such as thermal solar energy become aviable alternative because this energy can be storedduring periods when there is no solar radiation.In addition, the heat that remains in a thermal solarplant could be utilized in mining processes whichrequires a high demand for heat (currently beinggenerated by diesel and gas) similar to the processof Electrowinning, Heating and Sanitary Hot Water(also known as Domestic Hot Water) on large miningcamps (which could reach 10,000 people).3. What are the mining companies looking forwith renewable energy projects and, particularly,with CSP?Mining companies are looking to see the advantagesof the non-conventional renewable energies (ERNC)that conventional energies don’t have. This will bemainly in the low production of greenhouse gasesand a more favourable acceptance of using thealternative energy with the authorities and localcommunities.Given this, CSP has advantages from the point ofview of its capacity to store and generate heat for usein industrial processes.This makes it very attractiveand can turn into an excellent energy alternative inDiego Lizana Rojas, Head of the Energy Efficiency and RenewableEnergy Unit, Compañía Minera Doña Inés de CollahuasiDiego Lizana is a Forestry Engineer, graduated at the University ofChile and studied a Masters of Renewable Energies at the ResearchCenter for Resources and Energy Consumption at the University ofZaragoza in Spain.Diego started working at the Mine of Doña Inés de Collahuasi asa Specialist in Energy- Efficient Management, ERNC and ClimateChange. In this role he monitored and visited important CSP plantssuch as Andasol 1 in Granada, Spain, PS 10 in Seville, Spain,Nevada Solar One in Nevada, USA, and research centers suchas the Solar Platform in Almeria, Spain, and ENED in Freiburg,Germany. Diego also acted as Vice-President of the Energy EfficientMesa Mining Company.Diego’s personally believes CSP is an important alternative withinthe range of non-conventional renewable energies capable of stabilizing the electricalsystem of the Great North, particularly with storage of solar energy.“CSP has advantages from the pointof view of its capacity to store andgenerate heat for use in industrialprocesses.This makes it very attractiveand can turn into an excellent energyalternative in comparison withconventional energies.”Sample