Latin America holds huge potential for concentrated solar power, but the sector remains in its early stages. A new pilot project in Chile is set to give project developers hope

By Oliver Balch

Over eighty companies are due to meet in San Francisco today for the presentation of a pilot concentrated solar power (CSP) facility in Chile.

Chile’s National Energy Commission will unveil plans to construct a 10MW CSP plant in the north of the country. The plant is expected to cover a 20-hectare area, according to energy minister Marcelo Tokman.

Seven CSP developers have been invited to present project ideas at US event. The list includes US companies BrightSource and Ausra, Abengoa of Spain and Germany’s Solar Millennium.

California-based PG&E, which operates solar projects with a collective generating capacity of 1,000MW, is also due to take part. A formal bidding process will be announced before the end of June.

The mining industry is best set to benefit from the solar-generated power given its existing presence in the mineral-rich region and its high demand for electricity, Tokman states.

A number of national and international mining companies are set to attend today’s presentation, including London-based BHP Billiton and Chile’s Antofagasta Minerals.

“Mining companies are our natural partners for this project … they are looking for alternatives to provide them with a secure and sustainable supply [of power]”, Tokman says.

A number of power generating companies have also expressed interest, including Spain’s Endesa, AES of the US and Energia Austral, part of Swiss-based Xstrata. In total, more than 80 interested parties are scheduled to attend the event.

The proposed scheme, which is coordinated by state-owned development agency Corfo, also includes a separate solar panel facility with a capacity of between 500KW and 1MW.

Finance

Opportunities to access finance for CSP projects have so far been limited. But avenues do exist. The Inter-American Development Bank, for example, has funded a number of solar research initiatives in line with it strategic plan for the development of bioenergy and sustainable energy.

KfW, the German Development Bank, has also provided low-cost loans to finance renewable energies including solar in Brazil, Chile and several Andean countries.

Chile’s proposed CSP plant is the most significant public-backed project to date. The level of subsidy will depend on the bid proposals, according to a statement by Chile’s National Energy Commission.

Corfo is also promoting a second funding stream through its new Centres for International Excellence (CIE) programme. Announced last month, the initiative aims to attract international investors to establish research facilities into cutting-edge scientific technology, including renewable energies.

The initiative is open to bids from CSP project developers, as long as the projects meet the requirement to be productive and have a “high impact in the sector”, Corfo confirms.

Successful projects are eligible for an initial pubic subsidy of up to 50% of the total investment cost (to a maximum of $3mn per year). This covers the start-up phase, which can last no longer than three years. A further subsidy, capped at a maximum of $1.5mn, will be made available for each successive year.

Solar potential

CSP experts have long identified Chile’s high-altitude northern desert region as rich in potential for advanced solar technologies.

The region’s Atacama desert, for example, enjoys 330 days of cloud-free days per year and an average radiation of 6.5KWH per square metre.

With an average altitude of over 4,000 metres, the Altiplano region of western Bolivia and Peru, plus the high plateau of La Puna in north-west Argentina, enjoy similarly high solar radiation levels.

“In terms of direct sunlight, the area is up there at the top of the list”, says Dr. Gerry Wolff, coordinator of Desertec-UK, a non-profit network of scientists and technical CSP specialists.

Historically, lack of awareness of CSP in the region has limited project development, according to Wolff. Policy makers and energy providers typically believe that CSP continues to be expensive and the technology not fully developed.

As a consequence, the CSP field in Latin America lacks regulatory clarity, certification standards and sustained public financing, he maintains.

Small scale

Latin America is not without its solar projects. Pockets of research into CSP, for instance, are being carried out in a number of the continent’s larger economies, including Brazil, Argentina, Chile and Mexico.

In June 2006, Peru’s Congress passed a law (No.28749) promoting the use of renewables such as solar in power generation. The government has since earmarked $96.2mn to increase solar power capacity to 6,229KW by 2015.

CSP research

In terms of research and development in CSP, Argentina has so far set the pace for the region.

Heading the country’s research effort is the Institute of Non-Conventional Energy Research (Inenco), based at the National University of Salta, in the northwest of the country.

Together with other regional research institutes, the regional chapter of the National Scientific and Technical Research Council determined to focus on solar power as a priority theme for future research.

Under the rubric of the National Energy Plan and with funding from the National Ministry of Science and Technology, Inenco is seeking to develop its own CSP technology based on the Fresnel mirror system.

“The idea is not to import foreign technology, but to develop our own approach”, Luis Saravea, director of Inenco, tells CSP Today.

Starting in 2007, Saravea’s team has developed a 50m2 prototype and has a 400m2 in development. Inenco intends to build a third 10,000m2 facility with a generating capacity of 1MW.

“Our end goal is to develop a generator capable of 20MW”, Inenco’s director states.

Inenco’s experimental research is being carried out in partnership with the state-owned energy company Enarsa.