BGR Bundesanstalt für Geowissenschaften und Rohstoffe

Chile

Development of Geothermal Energy Resources in Chile


Background

As a consequence of the energy market liberalization, the dependence on foreign fossil energy imports grew. The installed power capacity amounted from 13.1 GW in 2008 to 17,5 GW in 2012. Actually, about 26% of Chile’s energy capacities are provided by gas, 14% by liquid fuel and about 22% by coal. About 34% are generated by hydropower and 4% by renewables, whereas the largest part is biomass, followed by wind. Shortages in 2005 and 2006 led to a strong public discussion about imported fossil fuels and domestic renewable energy production.

A first step to foster renewable energy was done when the modified Renewable Energy Act was passed in 2004. Chile promoted the increase of renewable energy share to 10% by 2024. The new Law 20.698 requires that 20% of new energy contracts come from non-conventional renewable energy by 2025. By then, 22.700 GWh are required to come from renewable projects. Amongst the renewable energies, geothermal energy stands out with low production costs and a high capacity factor. Chiles 4,000 km mountain range with many active volcanoes  indicate a high geothermal potential. Preliminary assessments range around a potential of 16 GW in over 300 identified geothermal areas. Until 2012, 18 exploration wells have been drilled. Actually, big projects for plants have started to be operational as of 2018 with estimated capacities of 50 and 70 MW. In order to reduce - in comparison to others - the remarkable economic risks of geothermal projects, the Chilean government decided to fund and carry out geothermal exploration campaigns through SERNAGEOMIN, the governmental geological survey.

The exploration campaigns are supposed to provide information on the geothermal potential and preliminary data on the feasibility of a geothermal power plant at selected sites.


Project description
A first cooperation between BGR, the private non-profit science and development institute „Fundación Chile“ and the owner oft he concession license, "Geotermia del Pacifico" was carried out in Sierra Nevada between February 2006 and December 2007. Geotermia del Pacifico contributed to the project with geochemical assessments. The Chilean Economic Development Agency CORFO co-financed these activities.

The project included first site investigations in the Sierra Nevada geothermal field, know-how transfer, regional workshops and providing professional advice to the Chilean authorities regarding geothermal resource use. The research outcomes of the geoscientific studies are:

  1. A deep reservoir was investigated using geochemical and geophysical methods (TEM, MT) and may be located closer to the Sierra Nevada volcano inside the National Park boundaries.
  2. A shallow geothermal reservoir has been identified with the TEM-Method. This resource is now used for space heating of a local boarding school.
  3. A cooperation was established between Fundación Chile and GTN in the fields of using excess heat from spa-pools (Puyehue) and space heating (Manzanar Boarding School).

In August 2009 a new cooperation was initiated between BGR and SERNAGEOMIN, the governmental Chilean Geological Survey. The cooperation has been carried out until 06/2014. The activities of BGR during this project are embedded in the large-scale geothermal exploration campaign conducted by the Chilean government. The campaign is funded by KfW ( 5.54 million) and.the Chilean government (US$ 1 million) The GEOTHERM Programme herein supports mainly capacity building ( 200,000). One of the project goals is building up a centre of technical and scientific knowledge in the governmental Chilean Geological Survey SERNAGEOMIN. During the project BGR provides planning and monitoring support as well as scientific advice for all capacity building activities. Further stakeholders are the Mining Ministry (commissioned with the administration of geothermal concessions) and the Ministry for Energy.

Geochemical sampling in the Sierra NevadaGeochemical sampling in the Sierra Nevada


Cooperation Partners:

SERNAGEOMIN

Fundación Chile

CORFO

GTN

 

Source: Central Energía

Ministerio de Energía



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