Context

The energy sector was key to Chile’s efforts in meeting its Nationally Determined Contribution (NDC) pledge. In 2013, emissions from the energy sector amounted to 85.1 MtCO₂e, equal to around 77% of Chile’s national emissions excluding land use, land-use change, and forestry (LULUCF). The electricity generation sector represented the main source of CO₂ emissions and was responsible for emitting 34.4 MtCO₂e in 2013, which corresponded to 31.3% of the country’s total emissions. Consequently, the potential for mitigation actions, particularly by incorporating renewable energies (RE) into the system, was significant.  

Goals and approach to transformational change 

The project aimed to reduce greenhouse gas (GHG) emissions by fostering renewable energy systems in small- and medium-sized businesses. It could therefore contribute to increased energy security, improved quality of energy services at lower costs, and the creation of new job opportunities. 

Components and support mechanisms 

The Financial Cooperation (FC) component was designed to remove barriers and incentivise the incorporation of decentralised renewable energy (self-supply RE) systems in private and public infrastructure in the short term. The project provided co-financing for feasibility studies for investment grants to establish these systems, as well as for training and advisory services to improve the financial sector’s understanding of self-supply RE. 

The Technical Cooperation (TC) component tackled a lack of awareness, capacities, and experience among potential users as well as service and technology providers. The project raised awareness and developed local capacities by conducting trainings and workshops for stakeholders in the private and public sectors. Technical support was also provided through a designated help desk, knowledge exchanges, as well as through the development of a GHG inventory for the small-scale energy sector. 

Long-term impact 

The project intervention resulted in 5,189 tCO₂e GHG emission reduction by supporting 63 small- and medium-sized businesses. The potential for transformational change, measured by the degree to which the supported activities catalyse impacts, was rated 2. Additionally, the project mobilised EUR 24.5 million of public finance and EUR 2.7 million of private finance. Out of the 63 projects supported, 16 had a women as the applicant or had a female legal representative, or there was a woman in the