An 8.2 magnitude earthquake that struck off northern Chile on Tuesday has not shaken Rame Energy's business in the country, the company's CEO told CNBC.
Rame, an independent power producer with significant exposure to Chile, sees the country as a naturally "seismic" area and the latest earthquake, which temporarily put the South American country on tsunami alert, did not affect the business.
"Chile's an incredible seismic country…and as a country it is extremely used to dealing with seismic activity. From our perspective for example, our immediate areas of interest are some 2,000 kilometres away from the earthquake," Tim Adams, CEO of Rame Energy, told CNBC in a TV interview on Friday.
The company began its first day of share dealings on the U.K.'s AIM on Friday to help fund its expansion in Latin America, particularly Chile, where it established an office in 2006.
Rame has a heavy stake in Chile's renewable energy sector. It has been involved in the development of around 23 percent of the country's installed wind power capacity. This exposure has made Adams confident that wind turbines will not be adversely affected by the earthquake.
"Wind turbines are extremely resilient to seismic activity. They endure much higher loads in their normal operating condition than they are actually exposed to by virtue of an earthquake. Some of our earlier projects in Chile experienced 400 earthquakes a year. It is a feature of the Chilean landscape but it is not in any way a significant negative," he said.
Rame is betting on the Chilean market for renewable energy after joining with Santander to help fund its first two wind projects in the country totalling 15 MW.
"We are very very cost competitive in Chile. There are many many markets, energy markets around the world that face a particular dynamic or are particularly strained for a number of reasons where in fact power prices are incredibly high and very unstable. And I think it's in those situations where renewable power has a very strong part to play," Adams said.
Critics of renewable energy have cited the high costs and excessive subsidies given to companies. The debate over energy has intensified as Europe's reliance on Russian energy was exposed during the Ukraine crisis. Meanwhile, the U.S. has pushed ahead with fracking and the development of shale oil and gas with many experts suggesting that this could make the country energy-independent.
Shale gas and the environmental impact of its product is a controversial topic. Adams dismissed the idea that shale alone could meet the world's energy needs, saying that it was not the "total answer" and added that renewables have a big part to play.
"The energy market globally looks for a panacea all the time and clearly shale can be perceived as part of that. I think at the end of the day, there is a part of all of these generating sources within the energy mix," Adams told CNBC.