If Chile wants to become a developed country by the
end of the 2020's it needs to generate electricity. If you want progress you need economic growth.
There is a clear correlation between power generation and development. Efficiency aspects in Chile have not yet managed to drop the curve between electricity generation and GDP. So, for the time being, it's imperative to increase the power generating capacity.
If Chile is to maintain a 6% annual economic growth, electricity generation must double between now and 2020. The green energies (wind, solar, geothermal, etc.) represent only 3% of the national grid. Hidroaysn is a hydroelectric project with no emission of toxic fumes, and therefore considered a clean energy.
Uninformed people think that the dam will flood a great part of the Patagonia. This is not so. Less than 0.1% will be flooded and Patagonia will maintain it's pristine environment in over 99.9% of its territory.
The use of water from the Pascua and Baker rivers is not water that is consumed. These rivers flow through the dam to move the turbines attached to electricity generators. Once this is done, the water returns to the normal course and ends up in the sea unpolluted. This is a response to a NYT Op-Ed written Op-ED The New York Times by an environmentalist who opposed the idea written by Ernesto Garcia A. of buiding the Hydroelectic project Hidroaysn with the title "Keep Patagonia Wild".
Economic growth causes development which reduces the unemployment level, which is very necessary in an economy which is developing and helps to bridge the inequality gap.
Wind and solar energies are too expensive and also hurt the environment. Consider only that a wind turbine needs the investment and building of the turbine itself. Plus the batteries for storage, plus the cement for the foundations, plus the finely tuned rotor blades and plus a conventional generator as a backup to generate power when there is no wind.
And, of course, the transmission lines. And how much do you believe a single wind turbine can generate. Besides, there is an environmental impact in the form of wind farms which clearly damage the landscape, in addition to making noise and killing the birds.
If the private corporations building the Aysen dam had projected a higher profit by building green energies, they would have done so. The problem today with green energies is that they are more expensive than thermal or hydroelectric sources, and would therefore need strong government subsidies.
Let's remember that China began with an enormous amount of thermal power plants driven by coal. This is what gave their basis for growth at the beginning.
They are now switching to hydroelectric and nuclear. The Three Gorges Dam is the largest hydroelectric in the world. And China, as opposed to Chile, will not just double their energy capacity by 2020. They will multiply it by ten. That is how countries seeking high levels of development act.
The Chinese, as well as the Indians, are embarked in a great nuclear development plan. Both have developed the Thorium Fuel Cycle for their new plants, which is a much safer way than using uranium as fuel. Besides, uranium reserves are limited whereas thorium is much more abundant.
To accelerate development, Chile would be wise to invest in thorium fuel cycle plants. However, both the hydroelectric project and thorium nuclear plants take a long time to build. Besides, nuclear plants are way more expensive so there is no question that the government would have to step in with tons of cash or as a 100% guarantor of the loans, since the payback period in nuclear plants is quite long.
There are advanced studies on green energies in Chile and the Government has pledged to increase the percentage of green energy sources on the interconnected energy grid to 20% by 2020. I don't believe that is a reasonable assumption but rather a political commitment to keep ecologists at bay.
Chile needs a big economic development that would drag it out from the poverty levels and into a more positive scenario. But just as increased energy supplies are necessary, big steps must be implemented to reduce the high inequalities in the distribution of income.
While these big investments are not up and running, the slack could be filled in with gas fired turbines, which are quite efficient and nature friendly. As the major generators come on stream, it will eliminate the need for the most polluting thermal coal plants.
As green energy technologies advance and become profitable, They might, in turn, replace all the coal fired plants and reduce the need for nuclear generation.