Using electricity will become a luxury only the wealthy will be able to afford.

The cost of electricity in Chile, which calls itself a leader in mining and solar infrastructure, soared 41% in the first quarter from a year earlier, according to the country’s-power coordinator CEN. For months, the country has been plagued by droughts, hydropower is no longer available and there is not enough wind to meet demand. This is on top of the allegations on dirty mining. They are scrambling to boost generation. It’s now almost twice as expensive as the average cost of power in South America. It’s getting to the point that only the wealthy will be able to afford electricity. They are not the only country in that situation. <br><br>The lack of water has led to low dam levels and hydropower has become scarce. It’s now down to just 25.8% of total power production. Wind power, which is the second-largest source, is not working at full capacity. Electricity demand in Chile is expected to grow 5% this year, a faster pace than the 3.3% forecast for the whole of Latin America. In the first three months of the year, power prices in Chile’s northern grid jumped 41% compared to the same period last year, the most expensive reading since 1996, according to data from the National Electric Coordinator. <br><br>The drought in Chile has intensified in recent years, leading to an increase in coal-powered plants. That led to the president, Gabriel Boric, to announce an inquiry, to look into the claims that mining companies including BHP Group and Anglo American PLC have been depleting aquifers and exploiting water previously used by farmers. <br><br>Sierra Gorda, a mine operated by KGHM, is also currently the subject of a court dispute. The lawyers in the case claimed that the mine’s expansion plan would put the surrounding water aquifers at risk, causing a health issue for the surrounding population. <br><br>This looks like a major issue. It’s not as if this was unexpected. Government officials and power companies in Chile have been working to increase power production and prevent blackouts. They have been the victim of very little rainfall over the last 12 years. The water was there, they just didn’t utilise it properly. Water evaporates as the months get warmer, the lack of rain and the destruction from the mining companies have led to a possible water crisis. It’s getting to the point that only the wealthy will be able to afford water and electricity. <br><br>Chile is not the only country in this situation. Many need to ramp up their production and planning. The weather isn’t going to get any better.