Chile: the energy factory for the world by Valhalla
Pitch
The greatest global challenge in transitioning to a clean energy matrix is to be able to store electricity at a low cost.
Description
Summary
The world is changing. Against the backdrop of the increasingly visible effects of climate change, exploitation of natural resources and reduction in biodiversity, a major revolution is developing ‒ a technological, cultural and economic transition with the power to change the course of our planet. This paradigm is the transformation of our energy matrix toward clean, economical and infinitely abundant resources.
The majority of these energies come from the sun. In just one hour, the sun provides the earth with more energy than humankind can utilize in a whole year ‒ considering all forms of energy consumption such as electricity and fuels.
Electricity demand requires continuous supply, and the peak demand occurs at 10 PM, when there is no sun. Solar energy is intermittent and is not available during Chile’s peak consumption hours.
Our company is developing Espejo de Tarapaca, a pumped storage hydroelectric plants, equivalent to large “water batteries,” which will allow us to store energy in an exceptionally economic manner and also to transform solar energy into an electricity source which is available 24 hours a day, 7 days a week.
This presents a great opportunity. The union between renewable energies and storage systems will transform Chile into a world leader in the transition toward the electricity matrix of the future, where energies like solar and wind will supply a significant portion of the demand by homes, industries and vehicles - providing economical, clean and unlimited energy. This allows transforming solar energy into a continuous source of electricity available 24 hours a day, 7 days a week.
Category of the action
Reducing emissions from electric power sector.
What actions do you propose?
Chile has an energy matrix with less than 5% of NCRE, in turn, the world is facing a visible climate change, overexploiting natural resources and a technological and cultural revolution that has the power to turn the course of our planet. We visualize a change in the matrix towards clean, economic and abundant sources where Chile will have an infinitely rich supply of clean energy for the future. How to achieve this? We need to store electricity.
The best method to store large amounts of electricity is through the use of pumped storage plants. Pumped storage requires two bodies of water, located at different heights, that can be interconnected. The plant uses electricity (when available) to pump water from the lower to the upper body. When required, the water is released back down from the upper body thereby generating electricity like a traditional hydroelectric plant.
Espejo de Tarapacá (EdT) – one of the most innovative infrastructure projects in the world – is comprised of a 300 MW pump hydro plant that operates with seawater. This project is essentially a large electricity storage system which will eliminate, at a low cost, the intermittency of non-conventional renewable energy – such as solar energy.
The project takes advantage of the unique geographic characteristics of the Atacama Desert in order to build a pumped storage hydroelectric plant that is almost natural: a site distinguished by a high coastal cliff located close to the ocean which contains natural surface concavities*, making it ideal for the storage of seawater.
The above characteristics minimize the environmental impact and the cost of the plant, which together with the solar energy produced from the best solar irradiation conditions in the world, making EdT a clean and abundant electricity generation alternative, that is competitively priced with thermoelectric plants.
The Cielos de Tarapacá (CdT) is comprised of a 600 MW-AC photovoltaic solar plant with single-axis tracking technology in order to follow the sun during the day from east to west. The size of the plant is such that if it were to begin operations in 2015, it would be the largest solar plant in the world.
Cielos de Tarapacá is complementary to Espejo de Tarapacá. In 2019, the combination of these two projects will create the first large scale system in the world capable of producing solar energy 24 hours a day, 7 days a week, competing directly and without subsidies with thermoelectric generation.
Who will take these actions?
Valhalla is a Chilean company founded in 2011 by two entrepreneurs with a vision to revolutionize the electric sector‒one of the largest industries in the world, a foundation for economic development and one of the principal contributors to climate change on the planet.
Valhalla is comprised of a multidisciplinary team of individuals enamored with the challenge of making a different kind of company, a world-class company with unbending ethics, dedicated to helping improve Chile and the world.
Also the goverment has an important role on promote and develop public policy that boots new technologies and cleaner energy.
Where will these actions be taken?
Chile, in the Atacama Desert, the place with the clearest skies, where the best solar irradiance in the world is found. The Atacama Desert not only has the worlds best conditions for the solar energy, but also excellent geographical conditions for seawater pumping stations: a terrain marked by a big coastal buttress, very close to the ocean, which has naturally occurring reservoirs just beyond the upper ledge, ideal for the storage of seawater, allowing storage without need of dams.
How much will emissions be reduced or sequestered vs. business as usual levels?
The Clean Development Mechanism (CDM) of the UNFCCC has stated that for most renewable power generation project activities -like Cielos de Tarapacá- its CO2 emissions are considered Zero.
The Project will delivery its energy to the Sistema Interconectado del Norte (SING) network, which based on CDM calculations has an emission factor of 0.7865 tons of CO2 / MWh generated. Accordingly, delivering solar energy to this system will displace CO2 emissions attributable to the generation of the energy that would have otherwise been generated by the operation of fossil fuel fired grid-connected power plants connected to the SING.
Cielos de Tarapacá will deliver 601,450 MWh per phase per year. Thus, Cielos de Tarapacá will account for the reduction of 473,040 tons of CO2 per year per phase. The project consists of 3 phases of 200MW each one.
What are other key benefits?
The centerpiece of Valhalla is the long-term sustainability. We understand that this goal exceeds by far the mere development of renewable projects. We also believe that is essential to have a young, honest and inclusive relationship with project local communities, understanding that we are the new neighbor, insert into an existing reality. This is our vision. It's a commitment we do not take lightly, and the foundation on which our company is based.
What are the proposal’s costs?
Most of our funding has come from angel investors and contests (such as Startup Chile). We just finishes our fifth fundraising round of US$13MM. The plan is to keep with the developing stage until July 2015; then, to raise a sixth fundraising round or, more likely invite a sponsor or strategic partner to fund the equity for the building. The proyect investment USD million 400 with 300 MW Capacity in Pumped Storage, Espejo de Tarapacá and USD million 900 in a 600 MW-AC photovoltaic solar plant, Cielos de Tarapacá.
Time line
Since 2011 we have been working in the develomp the In Augusto 2015, the Environmental impact Study (EIA) for the pumped storange was submitted to the Environmental Evaluation Authority, after 15 months of work, extensive on-site fieldwork and more than 13,000 man-hours. The study includes pioneering environmental modelling which has led to scientific articles in specialized international journals; In January 2016, was summitted the solar array.
The engineering design for the pumped storage facility is finished as is the environmental impact assessment. Land for the project site has been secured and associated government permits are being processed by the respective Chilean regulators. Currently, the company is focused on the completion of all the associated development work for the Project principally, the permits request.
We hope to start the construction at the bigging of 2016 and we expect to have profits by 2019. This profit should be very stable because its main source is a PPA contract.
Related proposals
https://www.climatecolab.org/web/guest/plans/-/plans/contestId/1301501
https://www.climatecolab.org/web/guest/plans/-/plans/contestId/1301415
By:
Valhalla
