PART 2: CSP Today Guide: Chile 2013


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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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PART 2: CSP Today Guide: Chile 2013

  1. 1. Organised by:As 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, Latin America Concentrated SolarThermal Power Conference & ExhibitionTo get more information about the CSPToday LATAMconference, visit: U S I N E S S I N T E L L I G E N C EIn association with:CSPToday LATAM 2013CSP Today guide: ChilePart 2Table of contents1. Chile launches its first CSPtendering process2. Interviewsn Carlos Arenas (EnergyMinistry for the North Zone)n Rodrigo Palma (SERC Chile)n ChristophTagwerker (BID)3. Mining, CSP and emerging markets:what is the potential?Download the full guidefor free
  2. 2. CSP TODAY | CSP Today LATAM 2013 | /en • 2B U S I N E S S I N T E L L I G E N C ECSP Today Guide: ChileThe potential of CSP in ChileThe launch took place one year after the announce-ment by the president Sebastián Piñera of the Na-tional Energy Strategy Plan 2012 -2030.Bunster said that the CSP plant “will allow us to useof natural [solar] resources, diversify our energy mixand will provide us with greater energy independ-ence whilst reducing carbon emissions”To ensure the CSP project is financially viable, Chile´sMinistry of Energy operating through Corfo will pro-vide a subsidy of up to $20 million, as well as to op-tionally facilitate the access to land for the plant.FinancingAdditionally, the government has negotiated a con-sortium of sources of financing mounting up to overUS $350 million in soft loans.„„ A direct subsidy from the European Union of upto US$ 18,6 million„„ The Inter American Development Bank (IADB) willprovide loans for at least US$66 million and up to25% of the total project costs„„ The German Development Bank (KfW) will provideloans worth €100 million, channeled throughCORFO and local banksKey Take AwaysThe tender was revealed through a tendering docu-ment that can be downloaded from Corfo´s websitein Spanish.The project will be of any scale upwards of a mini-mum of 10MWe, and it will be connected to either SICor SING (the Centre and Great North grid respectively)Technical characteristics„„ The plant can be of any CSP technology, includingparabolic trough, tower, fresnel and dish. The plantmust also have a mínimum of 3 hours of storage atThe Chilean government launched the firsttender for a project marketplace CSPSantiago de Chile: Jorge Bunster, Minister of Energy, together with HernánCheyre, Executive VP of Corfo, yesterday presented the first international CSPtender process in Latam.85% load, in order to guarantee the ability to dispatch.In the case of a tie the resolution of the tender, with allother metrics been equal, the committee will choosethe plant with the largest amount of storage.„„ Back up fuel is not allowed, other than to maintainthermal fluids and/or molten salts at the righttemperature to avoid freezing. In any case theamount of back up fuel cannot be higher than 6%of the annual electricity generated by the plant.DNIEach project being considered for the tender must in-clude a year´s worth of meteorological data, includ-ing solar radiation data, wind speed and temperatureat the location of the plant. The company must alsoundertake at least 6 months’ worth of DNI on-groundmeasurements after the project has been approved.Land & WaterThe solar developer can either put their own loca-tion/land forwards in their proposal or use the landwhich the government has available for this projectat Maria Elena.Regarding water issues, the developer has to declarethe amount that will be required for operation andmaintenance of the plant.Track RecordThe proposing company must present a summary oftrack record in CSP (either direct experience or experi-ence through a subcontracted company) including infor-mation about the degree of participating in engineering,construction, design and O+M of another CSP plant witha minimum of 10MW in size.The data to be submittedincludes detailed information of project´s metrics.PPADevelopers will have to demonstrate they have ar-ranged either a PPA or a MoU for the purchase ofSample
  3. 3. CSP TODAY | CSP Today LATAM 2013 | /en • 7B U S I N E S S I N T E L L I G E N C ECSP Today Guide: ChileChristophTagwerker, Specialist in Energy Efficiency, BancoInteramericano de DesarrolloChristoph Tagwerker works in renewable energy and energy efficiencydivision Sustainability Climate Change and Inter-American DevelopmentBank. Its activities focus on project design, implementation, monitoring andevaluation of projects including technical advice and support for the IDBofficial investment and its customers.Tell me about the role of the Banco Interamericano deDesarrollo in the bidding process for CSP in Chile?BID adopted a key role when it decided to back theChilean government so that it could obtain fundsfrom the Clean Technology Fund (CTF), particularlyin designing the bid. In addition to this, BID is inter-ested in offering financial backing to the companythat wins the bid. Part of the process requires thatbefore getting the concessional funds from CTF, thecompany that participates in the bidding must takeout a loan from BID’s private sector department.What are your expectations for CSP in Chile?In our opinion, we consider that this bid will resultin a CSP plant of at least 50MW, and that, obviously,it will give rise to the construction of future plants.What are the major difficulties in getting financialbacking from private banks?The main reason for the difficulty in obtaining financ-ing for this type of project is the lack of experiencewith CSP technology, and the risks that it brings areunknown for the initial stages of development.Why have you chosen to back CSP in LatinAmerica? (in other words, what future do you seefor this technology in Latin America)The scenario for CSP technology in Latin Americaand, more specifically, in Chile, is extremely favo-rable. Firstly, we are located in the geographicalarea with the best conditions in the world for con-centrated thermal solar energy. If you add to this theincreasing demand for energy, high energy prices (insome countries) and the necessity to diversify theenergy portfolio, you can see why we believe in CSP.For these reasons, we believe that CSP should bepart of the energy mix. In addition, one of our goalsin respect to climate change is to reduce the carbonfootprint in energy production.What other projects of a similar nature do you haveplanned for the future?Firstly we want to see how the project develops inChile. We currently don’t have a definite strategy inregards to expansion, but we would like to be able tospread our experience to other countries with simi-lar conditions as Chile.Sample
  4. 4. CSP TODAY | CSP Today LATAM 2013 | /en • 8B U S I N E S S I N T E L L I G E N C ECSP Today Guide: ChileThe potential of CSP in ChileMining is fast becoming an area of interest for CSP de-velopment – particularly CSP with storage. This is notsurprising: currently the mining industry is presentin more than 100 countries around the world. To sup-port the burgeoning demand for mined goods, a large,continuous, supply of energy is needed for extractionpurposes and to power equipment. Whilst mines areincreasing their production to meet the growing de-mand, at the same time they are receiving pressureto introduce sustainable, ‘green’, initiatives into theirprocesses.With many mining markets located in areas with goodDNI conditions (see figures 1 and 2) at a glance it seemsthat the pairing makes perfect sense: CSP could pro-vide a green and potentially cost-competitive sourceof energy for mining activities, particularly those inemerging markets where access to the electricity gridMining, CSP and emerging markets: what isthe potential?or gas network may pose a challenge.CSPToday examines the markets which are best suitedto CSP and mining hybridization.Markets for CSP and Mining HybridisationThe most important mining countries in terms of min-eral production are shown in Figure 1. Many of themare emerging economies that are located south of theequator, such as Chile, South Africa, Peru and Australia.In the last years, the mining sector in Latin America,Africa and parts of Asia has seen huge investments thatare expected to continue growing in the coming years.The increasing investment in new mining facilities willin turn increase the amount that mines need to producethereby increasing their energy consumption. CSP, par-ticularly CSP with storage, is a definite solution that hasGlobal over view of mining-active industries in 2011Source: Raw Materials Group. Stockholm, SwedenSample