The Chilean government has officially enacted Law No. 21,711, which amends the existing Law No. 19,657 concerning Geothermal Energy Concessions. This new legislation, published in the Official Gazette, aims to streamline the development of shallow geothermal energy by exempting such projects from the previous concession framework. With this publication, the majority of the law’s provisions have come into effect.
The full text of the law is available for public access in Spanish.
Earlier this year, both the Senate and the Chamber of Deputies approved the proposed amendments to enhance geothermal energy development. The law specifically targets shallow geothermal projects—defined as those extending less than 400 meters deep and operating at temperatures below 90 °C—by removing the requirement for a geothermal concession for these operations.
In addition to facilitating shallow geothermal energy development, the new law establishes a National Registry for Shallow Uses of Geothermal Energy, which will be managed by the Ministry of Energy. This registry will require all new and existing shallow geothermal operations to be officially recorded.
The law introduces several significant modifications to the existing Geothermal Law:
Regulatory Authority: Oversight and regulation of geothermal activities will now fall under the Superintendence of Electricity and Fuels, consolidating authority into a single regulatory body.
Registry Management: The Ministry of Energy will take over the responsibility for maintaining the registry of geothermal concessions.
Groundwater Use Restrictions: The law limits groundwater use rights granted to geothermal concessionaires strictly to water necessary for exploration and exploitation activities.
Safety Regulations: The Ministry of Energy is mandated to develop regulations that establish general safety standards for geothermal energy utilization. These regulations will focus on preventing risks to public health and safety while ensuring sustainable management of geothermal resources.
The new regulations regarding shallow geothermal energy use and safety are expected to be issued within 18 months following the publication of this law and will take effect upon their publication in the Official Gazette.
Chile is currently witnessing several shallow geothermal projects in development, many spearheaded by the Center of Excellence in Geothermal Energy of the Andes (CEGA). These initiatives are anticipated to significantly contribute to Chile’s energy landscape by harnessing its vast geothermal potential.
Key Highlights from Law No. 21,711
- Exemption from Concession Requirements: Shallow geothermal projects are no longer required to obtain a concession.
- National Registry Creation: A registry for shallow geothermal operations will be established under the Ministry of Energy.
- Regulatory Consolidation: Authority over supervision and technical standards is centralized within a single regulatory body.
- Focus on Safety Standards: New regulations will prioritize public safety and resource sustainability.
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