District Energy: Sustainable solution for air conditioning in Chile

Chile is adopting district energy systems to meet heating and cooling demands, reduce pollution and move toward its 2050 decarbonization goals. 

Chile has traditionally used inefficient, polluting, individual systems, like biomass space heaters and fossil fuels, to meet heating and cooling needs across its varied climates. 

However, district energy systems offer a sustainable, efficient solution that aligns with the country’s ambitious goal of decarbonizing by 2050. 

With major projects underway, Chile is a leader in sustainable energy innovation, generating investment opportunities in the sector. 

Chile’s challenge 

Chile’s diverse climatic and geographic conditions present a unique challenge and translate into high demand for heating and cooling.  The country has historically met this demand using inefficient individual systems that significantly contribute to the national carbon footprint. 

In 2018, the energy sector accounted for 77% of Chile’s total greenhouse gas (GHG) emissions.  The country has set ambitious decarbonization targets to address the situation, including carbon neutrality by 2050. 

District Energy: A promising solution 

One of the most promising solutions is district energy, which uses centralized sources to supply heating, cooling and hot water to multiple buildings via underground networks. 

These systems can harness renewable energy sources, like biomass and geothermal energy, significantly reducing dependence on fossil fuels and inefficient individual systems. 

District energy systems reduce energy consumption and combat air pollution, a severe problem in several Chilean cities. 

Chile’s 2050 Energy Policy aims to connect at least 500,000 users to district energy networks by 2050. 

The Energy Ministry has identified several major projects in cities like Santiago, Talca, Temuco, Coyhaique and Puerto Williams. 

Noteworthy projects include: 

1. The Recoleta-Independence Pilot Project: Located in Santiago, this project aims to demonstrate the technical and economic viability of district energy by providing heating, cooling and hot water to hospitals, universities and municipal buildings.  The project is expected to cut emissions by 3,750 tCO2eq/year. 

1. Talca Master Plan: This large-scale project will supply 813,000 m² with heating, cooling and hot water services for commercial, public and residential buildings.  It is expected to reduce emissions by 5,019 tCO2eq/year. 

1. Coyhaique Master Plan: This project, in one of the most polluted cities in Chile, seeks to cover 90% of the city’s heating demand using biomass, thereby cutting emissions by 18,684 tCO2eq/year and creating 274 jobs. 

International support 

Chile is also harnessing international partnerships to advance these projects.  Collaborations with organizations like the Global Environment Facility (GEF) and Net Zero World (U.S. Government) are helping overcome local barriers and accelerate district energy development. 

As Chile moves forward, these district energy initiatives will have significant pollution reduction and decarbonization impacts. 

The projects will help Chile reach its climate targets and offer attractive international investment opportunities.  With a total projected investment of US$1.17 billion, the portfolio is expected to cut emissions by 193,000 tCO2eq/year. 

District energy offers a promising opportunity for investors interested in Chile’s sustainable energy sector to contribute to a cleaner, more efficient future.