RENEWABLE ENERGIES IN CHILE

1
The Next Generation of Renewable Energy
Investment Opportunities
October 5th-6th, SANTIAGO Holiday Inn Crowne
Plaza Hotel
2
Chile, Proactively Pursuing Renewable Energy
Alternatives

• Natural gas supply crisis from Argentina since
  2004
• Governments Goal of 15 for new installed
  capacity with Renewable Energy projects for 2010
• New Electric Laws Amendments
• Right to sell energy to the system at the spot
  marginal price
• Right to have recognized prices
• It establishes fair market conditions for small
  size generators, leveling playing field

3
Why Chile?

• Safe environment with strong regulatory framework
  and dominance of the rule of law
• The most competitive and stable economy in Latin
  America

World Competitiveness Index 2005 -2006
Best Place to Do Business 2005 - 2009
Source World Economic Forum (www.weforum.org),
2005
Source The Economist Intelligence Unit
(www.eiu.com), 2005
4
Santiago International Investment Meeting 2006

• Matching more than 80 projects from Corfos
  energy portfolio, with interested investors from
• Investment Funds
• Investing Partners
• The Finance Community interested in Energy
  Projects
• Equipment providers

5
Santiago International Investment Meeting 2006

• You will meet
• International Foreign Investors
• Financing and Equipment Providers
• A wide range of renewable energies projects of
  eolic, mini hydro, biomass and y bioenergy
  sources
• Local companies interested in identifying
  potential partners and investors
• Government officials who oversee a range of
  energy development programs in the country

6
Choose Your Investment

• Energy sources
• 40 hydro run off river power plants
• 30 windmills
• 10 biomass fired power plants
• 5 other technologies (solar, geothermal)
• Project size
• 5 to 15 projects bigger than 20 MW
• 20 to 30 projects smaller than 20 MW and bigger
  than 10 MW
• 45 to 55 smaller than 10 MW and bigger than 1 MW
• 10 to 15 projects smaller than 1 MW

7
Choose Your Investment

• Project progress
• 20 to 30 ready to start building phase
• 30 to 50 in the intermediate phase, able to begin
  the financing strategy
• 30 to 40 in the first-stage studies
• Project proponent's Profile
• Agricultural entrepreneurs
• Channel management associations
• Forestry enterprises
• Energy enterprises
• Engineering consultants
• Land owner with good wind speeds

8
Promoting Initiatives and Partnerships in
Renewable Energy

• CORFO, The Chilean Economic Development Agency
  launched a pioneer nationwide tender's program
• July 2005
• 75 NCRE projects proposals for co-financing
  feasibility studies
• 46 approved
• Government finances up to 50 of studys cost and
  up to US50,000
• April 2006
• Expected similar number of projects

9
www.corfo.cl
Chile, a partner to rely on!