The World Bank Board has approved a US$1.8 million Clean Technology Fund grant to strengthen the Chilean Ministry of Energy’s capacity to further develop the country’s geothermal sector and improve its energy security.
The grant will contribute to Chile’s Energy Agenda and the Energy Policy 2050, which aims to boost the use of non-conventional renewable energy (NCRE) and reduce the cost of electricity.
World Bank on Oct. 12 said that the government of Chile has made a concerted effort to develop its nascent geothermal energy industry, but despite what appeared to be a promising start, a number of issues stymied exploration investments. The goal of the new funding is to resolve those issues and improve the geothermal energy market conditions.
“Developing geothermal technology allows Chile to meet its growing energy demand, provide energy security, in an environmentally sustainable manner, boost the country’s economic competitiveness, and promote investments in remote rural areas, where poverty is more concentrated,” Alberto Rodriguez, World Bank director for Bolivia, Chile, Ecuador, Peru and Venezuela, said in a statement.
The Ministry of Energy will be the lead implementation agency for the project, with support from the International Cooperation Agency of Chile within the Ministry of Foreign Relations. The grant has a four-year implementation period, World Bank said.
Lead image: City view of Santiago, Chile. Credit: World Bank.