Download the full guide for free at: http://www.csptoday.com/latam/en-content3.php There has been much talk and interest over the past months about the Chilean CSP market. CSP Today is currently organizing for the first time an event in Latin America that will take place in July in Antofagasta, Chile. As part of the research efforts, CSP Today has compiled a free-to-download guide with the must-have information on how to develop and build CSP projects in Chile. The guide includes detailed information about the current status of the energy market in Chile, future growth of energy demand and solar resources.

1. Organised by:
As part of the launch of CSP Today LATAM 2013 (July
2013, Chile), CSPToday is providing you with an exclu-
sive guide on the opportunities for CSP in Chile, in order
to prepare your business to take maximum advantage.
CSPToday LATAM 2013 is the only event in Latin Amer-
ica where the CSP industry meets the mining industry
in order to collaborate on solar thermal development.
Over 2 days, the conference will address the key topics
to progress in the Chilean market.
CSPToday LATAM 2013 will provide you with all the rel-
evant information to develop, build, finance and main-
tain a CSP plant. One of the most important aspects is
to promote the dialogue between mining companies
and CSP developers.
Chile, July
www.csptoday.com/chile/en
1st Latin America Concentrated SolarThermal Power Conference & Exhibition
To get more information about the CSPToday LATAM
conference, visit: www.csptoday.com/chile/en
B U S I N E S S I N T E L L I G E N C E
In association with:
CSPToday LATAM 2013
CSP Today guide: Chile
Part 2
Table of contents
1. Chile launches its first CSP
tendering process
2. Interviews
n Carlos Arenas (Energy
Ministry for the North Zone)
n Rodrigo Palma (SERC Chile)
n ChristophTagwerker (BID)
3. Mining, CSP and emerging markets:
what is the potential?
Download the full guide
for free at
www.csptoday.com/latam/en-content3.php

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B U S I N E S S I N T E L L I G E N C ECSP Today Guide: Chile
The potential of CSP in Chile
The launch took place one year after the announce-
ment by the president Sebastián Piñera of the Na-
tional Energy Strategy Plan 2012 -2030.
Bunster said that the CSP plant “will allow us to use
of natural [solar] resources, diversify our energy mix
and will provide us with greater energy independ-
ence whilst reducing carbon emissions”
To ensure the CSP project is financially viable, Chile´s
Ministry of Energy operating through Corfo will pro-
vide a subsidy of up to $20 million, as well as to op-
tionally facilitate the access to land for the plant.
Financing
Additionally, the government has negotiated a con-
sortium of sources of financing mounting up to over
US $350 million in soft loans.
„„ A direct subsidy from the European Union of up
to US$ 18,6 million
„„ The Inter American Development Bank (IADB) will
provide loans for at least US$66 million and up to
25% of the total project costs
„„ The German Development Bank (KfW) will provide
loans worth €100 million, channeled through
CORFO and local banks
Key Take Aways
The tender was revealed through a tendering docu-
ment that can be downloaded from Corfo´s website
in Spanish.
The project will be of any scale upwards of a mini-
mum of 10MWe, and it will be connected to either SIC
or SING (the Centre and Great North grid respectively)
Technical characteristics
„„ The plant can be of any CSP technology, including
parabolic trough, tower, fresnel and dish. The plant
must also have a mínimum of 3 hours of storage at
The Chilean government launched the first
tender for a project marketplace CSP
Santiago de Chile: Jorge Bunster, Minister of Energy, together with Hernán
Cheyre, Executive VP of Corfo, yesterday presented the first international CSP
tender process in Latam.
85% load, in order to guarantee the ability to dispatch.
In the case of a tie the resolution of the tender, with all
other metrics been equal, the committee will choose
the plant with the largest amount of storage.
„„ Back up fuel is not allowed, other than to maintain
thermal fluids and/or molten salts at the right
temperature to avoid freezing. In any case the
amount of back up fuel cannot be higher than 6%
of the annual electricity generated by the plant.
DNI
Each project being considered for the tender must in-
clude a year´s worth of meteorological data, includ-
ing solar radiation data, wind speed and temperature
at the location of the plant. The company must also
undertake at least 6 months’ worth of DNI on-ground
measurements after the project has been approved.
Land & Water
The solar developer can either put their own loca-
tion/land forwards in their proposal or use the land
which the government has available for this project
at Maria Elena.
Regarding water issues, the developer has to declare
the amount that will be required for operation and
maintenance of the plant.
Track Record
The proposing company must present a summary of
track record in CSP (either direct experience or experi-
ence through a subcontracted company) including infor-
mation about the degree of participating in engineering,
construction, design and O+M of another CSP plant with
a minimum of 10MW in size.The data to be submitted
includes detailed information of project´s metrics.
PPA
Developers will have to demonstrate they have ar-
ranged either a PPA or a MoU for the purchase of
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B U S I N E S S I N T E L L I G E N C ECSP Today Guide: Chile
ChristophTagwerker, Specialist in Energy Efficiency, Banco
Interamericano de Desarrollo
Christoph Tagwerker works in renewable energy and energy efficiency
division Sustainability Climate Change and Inter-American Development
Bank. Its activities focus on project design, implementation, monitoring and
evaluation of projects including technical advice and support for the IDB
official investment and its customers.
Tell me about the role of the Banco Interamericano de
Desarrollo in the bidding process for CSP in Chile?
BID adopted a key role when it decided to back the
Chilean government so that it could obtain funds
from the Clean Technology Fund (CTF), particularly
in designing the bid. In addition to this, BID is inter-
ested in offering financial backing to the company
that wins the bid. Part of the process requires that
before getting the concessional funds from CTF, the
company that participates in the bidding must take
out a loan from BID’s private sector department.
What are your expectations for CSP in Chile?
In our opinion, we consider that this bid will result
in a CSP plant of at least 50MW, and that, obviously,
it will give rise to the construction of future plants.
What are the major difficulties in getting financial
backing from private banks?
The main reason for the difficulty in obtaining financ-
ing for this type of project is the lack of experience
with CSP technology, and the risks that it brings are
unknown for the initial stages of development.
Why have you chosen to back CSP in Latin
America? (in other words, what future do you see
for this technology in Latin America)
The scenario for CSP technology in Latin America
and, more specifically, in Chile, is extremely favo-
rable. Firstly, we are located in the geographical
area with the best conditions in the world for con-
centrated thermal solar energy. If you add to this the
increasing demand for energy, high energy prices (in
some countries) and the necessity to diversify the
energy portfolio, you can see why we believe in CSP.
For these reasons, we believe that CSP should be
part of the energy mix. In addition, one of our goals
in respect to climate change is to reduce the carbon
footprint in energy production.
What other projects of a similar nature do you have
planned for the future?
Firstly we want to see how the project develops in
Chile. We currently don’t have a definite strategy in
regards to expansion, but we would like to be able to
spread our experience to other countries with simi-
lar conditions as Chile.
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B U S I N E S S I N T E L L I G E N C ECSP Today Guide: Chile
The potential of CSP in Chile
Mining is fast becoming an area of interest for CSP de-
velopment – particularly CSP with storage. This is not
surprising: currently the mining industry is present
in more than 100 countries around the world. To sup-
port the burgeoning demand for mined goods, a large,
continuous, supply of energy is needed for extraction
purposes and to power equipment. Whilst mines are
increasing their production to meet the growing de-
mand, at the same time they are receiving pressure
to introduce sustainable, ‘green’, initiatives into their
processes.
With many mining markets located in areas with good
DNI conditions (see figures 1 and 2) at a glance it seems
that the pairing makes perfect sense: CSP could pro-
vide a green and potentially cost-competitive source
of energy for mining activities, particularly those in
emerging markets where access to the electricity grid
Mining, CSP and emerging markets: what is
the potential?
or gas network may pose a challenge.
CSPToday examines the markets which are best suited
to CSP and mining hybridization.
Markets for CSP and Mining Hybridisation
The most important mining countries in terms of min-
eral production are shown in Figure 1. Many of them
are emerging economies that are located south of the
equator, such as Chile, South Africa, Peru and Australia.
In the last years, the mining sector in Latin America,
Africa and parts of Asia has seen huge investments that
are expected to continue growing in the coming years.
The increasing investment in new mining facilities will
in turn increase the amount that mines need to produce
thereby increasing their energy consumption. CSP, par-
ticularly CSP with storage, is a definite solution that has
Global over view of mining-active industries in 2011
Source: Raw Materials Group. Stockholm, Sweden
Sample