UK and Chilean businesses will receive a share of £2 million to develop energy projects.
The ‘Newton-Picarte Fund’ aims to boost energy efficient and solar projects in the South American country.
Only medium or small sized companies from the UK can apply for the funding but the project needs to be in a partnership with a Chilean firm.
The total project costs are expected to be up £230,000 and they are estimated to last between three or six months.
The fund has been set by the Department for Business, Innovation and Skills-managed Newton Fund.
The competition is open until 8th of January 2016.