Chile: Prospects, Market, and Regulation in the Geothermal Industry

Abstract

The Chilean government enacted a Geothermal Law in January 2000, establishing a framework to acquire geothermal exploration and development concessions. The state-owned oil company, the Empresa Nacional del Petroleo (ENAP), working with both public and private partners, has initiated an aggressive exploration effort, conducting geologic and geophysical surveys in key prospects directed at different markets in the north and south. Three exploration wells of 2000m to 2500m will be drilled in late 2002 and early 2003. At the same time, a combination of market conditions, a healthy national economy, limited fuel alternatives, and strong government support have made geothermal development in Chile a viable energy choice for the long term. Geothermal has recently received additional support fkom the adoption of the Clean Development Mechanism under the Kyoto Protocol.