Latin America Report: China’s Growing Investment in Chile

19 january 2013

China, always on the lookout for emerging markets, is investing in a $900 million, 300-megawatt (MW) solar farm as part of a broader trade agreement between the two nations.

The announcement was made shortly after a visit to Chile by China’s Premier Wen Jiabao. Chile produces a third of the world’s copper, and China’s rapid growth is increasingly dependent on the supply. Much of Chile’s solar pipeline is aimed at the copper industry, which has struggled to cope with the nation’s shaky grid.

Chilean leaders have expressed a desire to add about 8,000 MW to the 17,000 MW currently on the grid. Much of that addition is expected to come from renewable sources. By the first quarter of 2013, Chile expects to have more than 1,000 MW of renewable capacity. Most of that is biomass (41 percent), hydro (30 percent) and wind (28 percent). Solar makes up one-tenth of one percent. But there are many large-scale projects in the pipeline as international players line up to take a crack at the growing market.

Earlier this month, Spanish firm Solarpack announced plans to build a 25-MW solar park at a mine in the Tarapaca region. The project is expected to become operational by the end of 2013.