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technology. The new regulatory body eliminates one of the main barriers of the geothermal industry, which is the lack of legal certainty in obtaining geothermal exploitation concessions. The main change in the new regulation is that it gives the exclusive right to the exploration concessionaire to obtain an exploitation concession. This means that exploration concessionaires may work on developing high-cost investments with the certainty that in the future they will be entitled to obtain the exploitation concession. Additionally, the new regulation eliminates a number of requirements to apply for a concession of geothermal energy exploration, expediting the application process. Despite these recent changes, private developers still face barriers to raise risk capital and enter the market (see Annex 1). National Energy Efficiency Strategy During the last two decades, Chile’s energy consumption grew from 122,464 Tcal in 1991 to 271,429 Tcal in 2011 (or 122% net growth).6 The electricity consumption is projected to grow 5.5%-6.5% annually until 2020. To meet this energy demand, Chile will require adding an energy capacity of 7,000 to 8,000 MW by the end of this decade.7 Although the Chilean foreign energy dependency has been slowing down, it continues to be very high: 78% of its energy was imported in 2011, as compared to 84% in 2004.8 Energy efficiency has been identified as part of the solution to decrease energy dependency, increase the security of supply, and lower GHG emissions. Moreover, it contributes to increase the national competitiveness by lowering the cost of production. The aim of PAEE20 is to reduce by 12% the estimated energy demanded by 2020 relative to a business as usual case (BAU) scenario. The base year of the BAU scenario is 2010. The PAEE20 expects a reduction of 43,000 TCal, equivalent to an installed capacity of 1,100MW, relative to the BAU case. Table 3. Energy savings targets in the National Energy Strategy Sector Industry and Mining Transportation Building Devices Firewood Others Savings by 2020 (Tcal) 16,900 5,000 8,500 3,500 8,000 1,100 Savings by 2020 (%) 39 12 20 8 19 2 Total 43,000 100 Source: MinEne, (http://bit.ly/PAEE20, p.20, 2013) The PAEE20 defines an action plan by sector –industry and mining, transportation, building, devices, firewood, and others- and a knowledge awareness activity which is transversal to all the sectors. 6 http://bit.ly/PAEE20, p.8, 2013 7 http://bit.ly/PAEE20, p.9, 2013 8 http://bit.ly/PAEE20, p.10, 2013 Page | 10PDF Image | CLEAN TECHNOLOGY FUND INVESTMENT PLAN FOR CHILE
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