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Risk Mitigation Measure Residual Risk (low/moderate/high) Policy and regulatory framework Implementation capacity Technology Finance Environmental Social Procurement Table 8: Risks and Mitigation Measures: Revised CTF IP (2013) Policy and regulatory framework for investment in the energy sector and promotion of renewable energy and energy efficiency is clear and applied with transparency. CADE suggestions are expected to be Low indicative of adjustments in power sector regulations; no major market distortion is expected. Institutional strength of the Ministry of Energy, Ministry of Environment, Renewable Energy Center, Chilean Energy Efficiency Agency, and robust participation of private sector in the country reduce the Low implementation risk significantly. Particular interest in the less developed RESSEE. Selection of RESSEE technologies will be done by the High market reducing the technology risk. The country is perceived as very attractive for investment in infrastructure by foreign and local investors. However, there is financing risk access in NCRE technologies, as a result of a risk return imbalance. Chilean environmental legislation is being updated and institutional capacity of implementing agencies strengthened. Medium Medium Efforts will be made by stakeholders to raise public awareness about impacts and benefits. Low Performance While there are very few existing solar plants developed the country shows excellent natural conditions for development of solar, together with a very positive business environment and a long tradition of enforcement of clear and transparent policies and regulations. Concerning geothermal power, the program will include provisions to enhance good practices and enhance performance. Medium Risk of improper practices in procurement is low. Country ranks very high (always first in the region and Low above several OECD countries) in governance and transparency. Page | 15PDF Image | CLEAN TECHNOLOGY FUND INVESTMENT PLAN FOR CHILE
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