Norwegian power company Statkraft aims to have 1GW of installed renewable capacity in Chile by 2028, requiring an estimated investment of $1bn.
"Chile has special relevance for us due to its pioneering, solid and stable electricity regulatory framework," the company's Chile country manager Maria Teresa Gonzalez told Argus.
It also has "unbeatable renewable energies" from the northern desert's high solar radiation, strong winds in the south and water off the mountains, she said.
Currently, Statkraft has over 200MW of installed capacity in Chile from its 52MW Rucatayo run-of-river project in Los Lagos region and a 50pc share in the 318MW Confluencia and Higuera run-of-river projects in O'Higgins region. Pacific Hydro Australia owns the rest.
"We are actively seeking opportunities [to scale-up], especially in wind, from greenfield projects to M&A [mergers and acquisitions]," said Gonzalez.
The company has a project portfolio of 1.6GW in different stages of development. The 52MW Los Lagos run-of-river plant in Los Lagos and the Cardonal, Manantiales and Cerrillos wind farms, with a combined capacity of 105MW in the O'Higgins region, are under construction.
The wind farms are expected to come online gradually from the end of this year or early 2024.
Statkraft is also targeting its 671MW Pauna solar photovoltaic project in Antofagasta region, which has environmental approval, to fuel the production of green hydrogen and its derivative green ammonia.
"We have completed the pre-feasibility study for the Pauna Greener Future project and are now at the stage of talking to potential partners and off-takers," said Gonzalez.
But insufficient transmission capacity, onerous permitting processes and lack of territorial planning present significant challenges to the energy transition in Chile, she said.
"Permitting is critical. If Chile stops being competitive and becomes too bureaucratic, multinational companies will take their investments elsewhere," said Gonzalez, giving as an example the 92 sectorial permits required by its Los Lagos project.
Statkraft is present in 21 countries and aims to grow by 4GW/yr to 2030.
