On a visit to Chile, a delegation led by the president of the German Upper House, Bodo Ramelow, valued the energy project of the Cerro Dominador solar thermal plant as an advance within the country.
In the face of the international energy crisis, Germany is looking for alternatives to Russian gas and other fossil fuels. Chile already produces much more energy than it consumes, half of it from renewable sources.
One of the clearest examples is the Cerro Dominador solar thermal plant, the first plant of its kind in all of Latin America, which visited Bodo Ramelow, President of the Federal Council.
The first concentrating solar power plant in Latin America generates energy using the radiation from the Atacama desert.
This context, added to OPEC’s decision to cut oil production, has caused concern in Germany, the EU and the US.
This, as much of the planet faces a winter of energy shortages, rising prices and slowing growth.
A barrel of European Brent crude cost around $94 (€95) this week. The previous one was USD 98 per barrel.
The rise in prices comes following the Organization of the Petroleum Exporting Countries+ (OPEC plus Russia) agreed to reduce production by 2 million barrels per day in November, which represents 2% of world supply.
The President of the USA, Joe Biden, He said there would be “consequences” for Saudi Arabia, following the Riyadh-led alliance’s decision to cut oil production.
Contributing factors outside of Germany
How severe the coming winter will be is another factor to consider, as well as how quickly French energy giant EDF manages to get its nuclear plant back online.
Another component is the success of governments in reducing demand in industry and in households. This, through energy savings and a rapid implementation of renewable energies.
Ashley Kelty, Director of Oil and Gas at Panmure Gordon, a corporate investment banking firm, points out that the current rises are not due solely to Ukraine.
On the contrary, he explains that “The current situation is due to years of underinvestment in oil and gas, political arrogance, and increased environmental, social, and governance (ESG) investment.”
