Mainstream Renewable to invest US$ 1 billion in Chile
Published: May 27, 2009
The Irish company plans to build wind farms in our country over the next five years. The first will be set up in the Valparaíso Region at the end of this year.
Mainstream Renewable officially launched its operations in Chile by announcing the construction of its first wind farm. The Irish company signed a US$ 1 billion agreement with Chilean partner Andes Energy, in November 2008. The joint venture company Andes Mainstream SA will oversee the development of an initial pipeline of 400MW of wind energy in Chile.
"Energy independence and sustainability are vital to Chile's energy future. Fortunately, the country has one of the best wind resources in the world. Our research shows that Chile has the natural resources to develop 44,000 megawatts of wind energy and another 37,000 MW of solar energy," explained Mainstream Renewable founder and CEO, Eddie O'Connor. "Renewable energy resources alone can turn Chile into an exporter of clean energies," he added.
José Ignacio Escobar, general manager of Andes Chile, said Mainstream Renewable had identified several areas across Chile with "very good wind conditions". The conglomerate's first 35 MW wind farm will be built at Laguna Verde, near Valparaíso, and is expected to be operational by 2010. This project has been supported with the incentives of the Chilean Economic Development Agency ?CORFO- through its InvestChile Program. Additionally, the company will also develop wind farms in the Coquimbo, O'Higgins and Biobío regions.
Escobar regards this US$ 1 billion investment as just a starting point. "If we can install not 400, but instead 800, 1,500 or 2,000 megawatts, we're going to do it," he stated.
O'Connor also announced the creation of an excellence centre for the implementation of renewable energy projects in Chile. He explained that the country "is an ideal platform to monitor projects in Latin America and, what is most important, there is freedom to engage in business". With this centre, Chile will become Mainstream Renewable's strategic point for its expansion in Latin America.
Laguna Verde
The Laguna Verde wind farm, located in the Valparaíso Region, will generate enough sustainable energy to power over 19,000 homes and prevent the release of between 34,000 and 80,000 tonnes of greenhouse gas emissions each year. The wind farm, which is the most advanced of the 400 MW pipeline, involves the installation of 16 wind turbines of 2.3 MW each. The project is currently in the last stage of the environmental impact study.
During the construction phase, the Laguna Verde project is expected to employ about 200 people, as well as generating employment through local service provision. In addition, the wind farm will provide ongoing employment in its operations centre. It also involves investment in roads, improved fire control systems and security systems.
Regarding the new Laguna Verde wind farm, Energy Minister Marcelo Tokman told news radio station Cooperativa that, "it is extremely important for the country to exploit both renewable energy and technological development in the world."
"In these four years of government, non conventional renewable energy facilities are going to double, increasing from 2.6% to 4%. There is over 1,800 MW in wind energy projects that have been approved and are under evaluation. This tells us that we are doing things right," he added.
According to Mainstream Renewable´s CEO, Eddie O'Connor, "the Chilean government have recognised the economic, social and environmental benefits of creating this new industry, which will have huge positive repercussions for its future. Its policy-makers have acknowledged its potential and are being proactive in putting the optimum support structures in place to extract maximum value, and that's why we've chosen Chile as a key emerging market."
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