Chile Faces Complex Challenges in Territorial Management for Energy Projects

Santiago, Chile — In Chile, securing permits for development projects, especially in sectors like energy, desalination, and mining, has become an arduous task fraught with complexity. This complexity stems largely from the country’s intricate permitting process and the challenge of gaining acceptance for large-scale projects in communities where development is already dense.

Recent attempts by the Chilean government to streamline these challenges include proposing bills aimed at simplifying the process. Yet, significant hurdles remain, particularly concerning territorial planning and community acceptance. The necessity for projects to be located where the natural resources exist further complicates matters, imposing strict geographical limitations on development locations.

Amid these challenges, the Chilean renewables and storage association, Acera, has released a detailed report underscoring the importance of effective territorial management. The report highlights territorial management as a key enabler of Chile’s energy transition, aiming to align project development with both resource availability and community interests.

José Miguel Hernández, a lawyer specializing in complex territorial projects at Evans Group, emphasized in a discussion the critical nature of territorial management in sectors reliant on specific natural resources like energy. “Building infrastructure like hydroelectric plants or wind farms requires proximity to natural resources, which you cannot relocate,” Hernández explained. This inherent need dictates the precise locations for project development, subsequently entangling them in local socio-environmental dynamics.

For instance, the best wind resources in Chile are located in the Chiloé Archipelago in the Los Lagos region. However, due to social, environmental, and land-use complications, developing a wind farm there is not feasible. Similarly, solar plants in the Antofagasta region face challenges like morning mist at lower altitudes which affects solar irradiation levels, crucial for energy production.

The strategic placement of energy storage systems such as batteries also requires careful consideration, as they need installation near substations to minimize transmission costs, Hernández added.

Chile’s approach to territorial management in energy development varies significantly across different types of energy sources. While renewable energy projects like solar or wind parks are generally governed by regional master plans, this is not always sufficient for orderly development. “There is no specific legislative or regulatory guidance currently in the pipeline to better organize how many plants can be built and where,” Hernández pointed out.

In certain regions, like Taltal in the Antofagasta region, the government has proactively designated areas for wind energy development due to favorable conditions and state-owned land. Conversely, in areas with privately owned land, such as Los Ángeles and Angol, there has been a surge in wind park projects, leading to a somewhat disorganized proliferation of renewable energy infrastructures.

Hernández advocates for the establishment of baseline regulations that would provide more structured guidance on project development based on the local environmental assessments and resource management to avoid the creation of “sacrifice zones” — areas overwhelmed by clustered project development.

He remarks on the necessity of regulation not only to organize and permit development more effectively but to ensure the protection of community interests and environmental integrity as well. As Chile continues to grapple with these multifaceted challenges, the harmonization of natural resource utilization, community acceptance, and environmental sustainability remains paramount.

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