Embassy of Korea in Chile – Ms. Kleinsy Bonilla, Specialist in Energy and Mining Alcántara 74, las Condes, Santiago – (+56-2) 2228-4214, [email protected]
ENERGY AND MINING
NEWS REPORT
The hydro generated power used to have predominance in the energy mix of Chile, reaching up to 70% of the Central Interconnected System SIC. This may change in the near future, according to a study elaborated by the University of Chile, as aeolian and solar energy are projected to surpass hydropower toward 2025.
In this scenario, a combined capacity of wind and solar energy would represent 25% of the Chilean energy mix by 2021, which at the same time would increase to 28.3% by 2025. Meanwhile hydropower would reach 24.6 that year. In any case, thermo energy sources would to continue to prevail with 46.2%
represented by coal, gas and oil in 2021 and 41% of the same sources by 2025.
Source: https://www.df.cl/noticias/empresas/energia/proyectan-que-energias-eolica-y-solar- superaran-en-capacidad-a-la/2016-12-09/203641.html
Estimations: Wind and Solar Energy will surpass hydropower capacity towards 2025
International Consulting firm remarks Chile´s appealing for investment in Renewable Energy
Ernst and Young, an international consulting firm, released a study highlighting the appealing of Chile for investment in renewable energies. However, the same study points deficiencies in terms of transmission.
The authors remark the significant growth, particularly of solar energy, which places special challenges to the transmission infrastructure of the country.
Currently Chile ranks 4th among 40 countries attracting investment in non conventional renewable energies; four years ago this nation occupied the 38th place.
The Congress is debating a bill regarding the transmission system to address concerns of the stakeholders in the energy sector.
Source: http://www.revistaei.cl/2016/12/11/ey-destaca-chile-atractivo-inversion-energia- renovable-advierte-deficiencias-transmision/
The considerable increment in the presence of non renewable power sources in the energy mix of Chile could create complications for the transmission capacity of the grid. A study elaborated by the Central Interconnected Dispatch projects a collapse in the main transmission line of the country by 2023 at least 20% of the time.
Some recommendations to anticipate a solution include: in one hand, promote storage mechanisms to better administrate electricity transmission and in other hand build alternative transmission lines. A combination of both actions would alleviate congestion in the existing transmission line, adding efficiency to the system while lowering energy costs.
Source: http://www.economiaynegocios.cl/noticias/noticias.asp?id=314960
Study anticipates collapse of major transmission line by 2021 in Chile
2016, D e ce mbe r 1s t – 1 5t h
Embassy of Korea in Chile, 2016 Sources: Various authors, newspapers: El Mercurio, La Tercera,
Diario Financiero. December 01-15, 2016th
Ms. Paulina Nazal, Head of the Economy Direction of the Ministry of Foreign Affairs of Chile announced the revision and renegotiation of at least 26 FTAs signed by the country with various partners.
This process aims to add chapters, include new products, services and update regulations to further facilitate international trade. Chile is well known for its open trade strategy, which has resulted in the signing and implementation of FTAs giving it access to 85% of the world GDP. Among the first partner nations to engage in the process there is South Korea, which market would accept Chilean fresh fruits among other items.
Source: http://www.latercera.com/noticia/paulina-nazal-chile-renegociara-tratados- libre-comercio/
Chile will renegotiate its FTAs, Head of the Economic Direction of the Chilean Ministry of Foreign Affairs
During 2016 lower prices of fuel and a bigger share of non conventional renewable energy in energy generation of Chile explain a drop in energy costs of 32%.
The scenario is seeing as positive by experts, considering the significant reduction of hydro energy sources due to heavy drought experienced by Chile since 2006. During 2017 it expected further cost reductions, although a more favorable rain precipitation is anticipated.
Source: http://www.revistaei.cl/2016/12/30/costo-de-la-energia-anota-su-menor-nivel-en-una- decada-pese-a-deficit-de-lluvias/
Costs of Energy in Chile score the lowest level in a decade despite rain water deficit
Chilean Government aims at replacing coal with solar power in its energy mix
The National Commission of Energy CNE presented a program in which the institution shows an official perspective to replace coal with solar power in the energy mix of Chile. It is projected that the electricity consumption in the country will grow at least 3.5% by 2029, in this sense the CNE planed its infrastructure building with a 65% volume of solar energy, combine with 5 eolian parks. The time horizon to implement the plan reflects a decade of works.
Source: https://www.df.cl/noticias/empresas/energia/gobierno-saca-al-carbon-de- la-matriz-y-apuesta-fuerte-por-la-energia/2016-12-21/211309.html
