Investors’ perspectives on barriers to renewables deployment in Chile

Produced by: 
Universidad Adolfo Ibañez
Available from: 
May 2016
Paper author(s): 
Shahriyar Nasirov
Carlos Silva
Claudio A. Agostini
Topic: 
Macroeconomics - Economic growth - Monetary Policy
Year: 
2016

In the last decade, the importance of exploiting significant long-term potential of Renewable Energy Sources (RES) in Chile has increased significantly as fossil fuel prices rise and concerns regarding climate change issues grow, posing an important threat to its economy. However, to date, the advancement rate of Renewable Energy Technologies (RETs) in the country has been very limited in practice due to various barriers. For this reason, identifying and mitigating the main barriers that hamper the advancement of RETs is necessary to the successful deployment of these technologies. Based on data collected from a questionnaire survey and interviews conducted among the major renewable project developers, the major barriers in the adoption of renewable energy technologies in the Chilean context are identified and also ranked in importance. Our findings show that the most significant barriers include ‘‘grid connection constraints and lack of grid capacity”, ‘‘longer processing times for large number of permits”, ‘‘land and/or water lease securement’’ and ¨limited access to financing ¨. Furthermore, we discuss the most critical ones in detail together with policy recommendations to overcome them.

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