Chile's Wind Power Expansion and Green Hydrogen Projects Surge Forward
Key Ideas
  • Chile is advancing its wind power projects, with regions like Magallanes and Antofagasta leading the way, driven by the development of gigawatt-scale green hydrogen projects.
  • Large generators like Engie and Colbún are investing in a diverse portfolio of wind projects, with a particular focus on green hydrogen projects, showcasing a shift towards sustainable energy sources.
  • The country aims to retire its 5.5GW coal-fired plants, promoting the growth of renewables and attracting significant investments in wind and green hydrogen projects.
  • Offshore wind potential in Chile is significant, with regions like Biobío and Valparaíso identified as attractive for future development, indicating a growing interest in marine energy technologies.
Chile is making significant strides in expanding its wind power capacity, with 27GW of projects in the development phase. The bulk of proposed capacity is concentrated in the far-south region of Magallanes, where gigawatt-scale green hydrogen projects are planned, driving a substantial capex of US$46.9 billion. Notable hotspots for wind investments include the Biobío and Antofagasta regions, with wind turbine giant Vestas identifying new hubs in regions like Los Ríos and Los Lagos. As part of a wider decarbonization effort, Chile is working towards retiring its 5.5GW coal-fired plants, creating a demand for new renewable energy capacity. In this context, companies like Engie and Colbún are leading the way with a diverse portfolio of wind projects, while also focusing on green hydrogen initiatives. The country is also exploring offshore wind potential, with around 3.5GW of capacity presented for the Biobío region. Furthermore, regions like Bíobio, Los Ríos, and Valparaíso are seen as promising for offshore wind development, with favorable wind resources and strategic locations. While the current focus remains on land-based generation, especially solar PV-storage hybrids and wind, interest in marine energy, particularly floating wind, is expected to grow as technology advances and regulatory frameworks are established. This surge in renewable energy projects, including the development of green hydrogen, indicates a positive shift towards sustainable energy sources in Chile's energy landscape.
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