Incentives for the development of NCRE projects in Chile

Through the enactment of the Law 20,698, the Chilean authorities aim to reach 20% Renewable Energy share by 2025. This law is based on a quota system whereby the Chilean authorities established RE targets for the coming years. This law also incorporated RE auctions in case the quota set cannot be met. To facilitate the achievement of this law, this research aims to propose improvements to the Chilean regulatory framework for developing RE projects in Chile. To this end, the objectives for this research are to analyse how the RE support schemes and the electricity market should be designed, how grid connections and grid development costs should be allocated and how RE auctions should be conducted to facilitate RE deployment. To address these objectives, the different support mechanisms and practices to promote RE projects in the EU will be used as a benchmark. The research design is based on a qualitative case study, whereby the lessons learned in EU s leading countries in utilising RE sources (Germany, Denmark and the UK) are used to assess the advantages (and disadvantages) of their support schemes.