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Government commission urges greater use of renewables in Chile

A Chilean government commission, the Citizen’s Parliamentary Commission on Energy (CCPE), has published an analysis of the country’s electricity system which states that greater adoption of renewables can lower energy costs.

The CCPE has urged the government to adopt a more sustainable generation mix and stated that Chile has the potential to generate 6 GW from geothermal energy, 4-5 GW from wind, and solar and other renewables can supply all future demand.

The report says that increases in oil prices have seriously impacted electricity prices, and that greater use of renewables can lower those prices. Chile has 12 per cent of its electricity supply from oil, and the spot-market for oil generation has fluctuated between $0.135-0.228/kWh over the period of writing the report.

The report also states that the real sale prices of renewable energy range from à‚£0.060/kWh for biomass to $0.180/kWh for concentrating solar power. It estimates the cost of central diesel generation to be over $0.220/kWh.

Chile currently has a goal to reach 20 per cent renewable energy generation by 2020.

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