Major economies are leaders in the energy transition sphere through investments in renewable energy sources and new technologies. The power to invest gives them the advantage to take a leading position in the new economic order. There is nothing strange or new here. Leadership positions are always reserved for those with money and resources.
But there are always examples, from an unfavorable position, who know how to make a quantum leap and create excellent conditions for a complete turnaround. Those examples are a motive and real proof that miracles are possible if concrete steps are taken, which are preceded by a strong and firm decision.
Such a story is Chile, the leader of South America in the energy transition. And not only that, Chile is an example of a political decision that is successfully transformed into practice and produces results. An example of cooperation between the public service and private capital in the function of successful implementation of projects of interest to the country. In short, Chile is an example that when you love and act with dedication and honesty, anything is possible in the real world.
The decision for a quick and effective energy transition was made in 2007. Today, after almost 15 years, Chile can boast of 45% of the energy taken in the country. According to the plan, by the end of the decade, the country will have over 70% of its energy taken for its needs.
These impressive results of Chile, which can rightly be called a growing economy, are really encouraging for countries that want to make progress on this plan and confirm that with a good policy, results can be achieved. For Chile, the “red light” came on in 2007, after the gas crisis with Argentina, when in addition to electricity restrictions, the price also rose enormously.
This case was a lesson learned for Chile. It was more than clear that for stability, long-term predictability, and prosperity it is necessary to create their own capacities, which will use the excellent natural potentials of the country. It is always the cheapest when you rely on your own strength.
The government of Chile has created secondary policies through institutional solutions and clear regulations that have created a solid foundation for investing in renewable energy projects. The institutional framework enabled the realization of many projects through the private-public partnership model.
Strong political will, clear regulation, and macroeconomic stability have attracted serious fresh capital that reached $3.4 billion or 17.4 GW last year.
Investments in the energy transition in Chile are aimed at all segments and allow real diversification, which is another positive aspect. Namely, in addition to investments in solar and wind energy, investments are equally made in hydrogen, electric cars, and the creation of sustainable technological solutions that will enable the development of smart cities. Chile’s urban centers are among the most successful in reducing CO2 emissions. The country plans to achieve zero emissions by 2050 and is doing well on its way.
Good investment conditions, reduced costs, and reliable purchase of produced energy make Chile the first choice of investors in South America, but the country also ranks well globally as a place favorable for investing in green projects. The natural potentials still offer excellent opportunities, and the institutional stability and support that investors receive is another trump card for Chile, which will likely continue to attract investment in this sector.