Chile has made significant progress in developing its renewable energy potential.

That’s according to a new review from the International Energy Agency (IEA), which applauds the country’s new legislations and says they have encouraged investment in generating clean capacity across the sector.

However, the organisation urges more ambition on energy efficiency and sustainable use of firewood.

It suggests if renewables resources are to be properly integrated into the grid, additional investments in storage, smart management systems and flexible capacity are required.

The IEA believes the government should also introduce additional incentives for innovation and competition in the electricity distribution sector.

The widespread burning of firewood causes severe air pollution across Chile- the IEA says it should adopt more ambitious policies and measures to encourage the use of sustainable wood and alternative heating technologies.

Paul Simons, the IEA Deputy Executive Director, said: “By exploiting its vast renewable energy potential, Chile can help reduce electricity prices and dependence on fuel imports – without subsidies.”