A law encouraging companies that have the capacity to generate more than 200 MW of electricity to produce at least 10 per cent from renewable energy sources is set to give the renewables sector in Chile a significant boost.
Under the legislation, known as Law 20.257, which was passed in 2008 and came into effect last year, 5 per cent of total production in new energy contracts must be provided by renewable energy sources by 2014.
By 2024 it must be 10 per cent of total energy production
According to media reports, the uptake by companies is expected to be gradual, i.e. in the region of 0.5 per cent per year.
Officials anticipate the generation of electricity from renewable energy will rise from the current 1.6 per cent to approximately 8 per cent of total generation.