Chile Officially Publishes New Geothermal Law

Wedoany.com Report-Nov 12, The Government of Chile has officially published Law No. 21,711, which improves Law No. 19,657 on Geothermal Energy Concessions, in the Official Gazette. The law seeks to facilitate the development of shallow geothermal energy uses by excluding them from the previous concession regime. With this publication, most of the provisions of the law have entered into force.

The proposed law was approved by both the Senate and the Chamber of Deputies of the Republic of Chile earlier this year. The new law primarily makes the development of shallow geothermal projects – defined by the law as being less than 400 meters depth and at temperatures below 90 °C – by removing the requirement for a geothermal concession for such projects to operate.

The law also creates a National Registry for Shallow Uses of Geothermal Energy. to be managed by the Ministry of Energy, where new and existing shallow geothermal operations will be compulsorily registered.

Aside from the provisions on shallow geothermal energy, the new law further modifies the Geothermal Law with the following provisions:

Places the authority on supervision, regulations, and technical standards of the Geothermal Law into the Superintendence of Electricity and Fuels, thus consolidating authority into a singular body.

Transfers the function of maintaining the registry of geothermal concessions to the Ministry of Energy.

Restricts groundwater use rights granted by the Geothermal Law to geothermal concessionaires to water necessary only for exploration and exploitation work.

Mandates the Ministry of Energy to issue regulations establishing general safety standards for the utilization of geothermal energy, including measures to prevent and control risks to life, health, and safety of people, safeguarding the sustainability of the geothermal resources, and protecting facilities and infrastructure.

Regulations on shallow geothermal energy use and safety must be issued within 18 months of publication of the law. These regulations shall then come into force upon publication on the Official Gazette.

Several shallow geothermal projects are currently under development under Chile, many of which are under the leadership of Center of Excellence in Geothermal Energy of the Andes (CEGA).