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Chile’s Renewable Energy and Energy Efficiency Market: Opportunities for U.S. Exporters Brief History of Chilean Renewable Energy and Energy Efficiency Policy 1992 1997 1998 2000 2003 2004 2005 2006 2008 2009 2009 2010 2010 2011 2012 Chile’s economic development and growing energy needs of mining sector increase awareness of the need to consume and produce energy more responsibly Chile and Argentina sign the Convention on Energy Integration, facilitating the import of natural gas from Argentina. The first electrical interconnection between Chile and Argentina is established (Inter-Andes). The new Energy Electricity Law is developed and passed. First Chilean energy project receives funding through Clean Development Mechanism (one Colbun Power Plant is certified to have completed CO2 reduction of 112,607 tons). The Short Act I is passed, improving the safety of the energy supply transportation system and exempting transmission charges for new renewable energy sources below 20 MW of capacity). The Short Act II is passed fostering investment in the energy and electricity sector, simplifying legal procedures for projects below 9 MW. The Chilean Government announces its support for increased use of biofuels and the Energy Safety Plan is reinforced. Chile’s legislature passes Act No. 20.257, which requires utility companies to produce 5% of their electricity from non- conventional renewable energy sources by 2014, rising 0.5% per year to 10% by 2024. The Chilean Government publishes 20 separate tenders for the production of geothermal energy. Chile’s Renewable Energy Center is launched with support from the U.S. Department of Energy and the National Renewable Energy Center. President Pinera announces plans to achieve 20% renewable energy (not including large hydropower) by 2020; he later backs off these comments. Chile creates the Ministry of Energy and the Ministry of Environment. Additionally, the National Energy Efficiency Program becomes the Chilean Energy Efficiency Agency. Blackout keeps 10 million – of 17 million total Chileans – without electricity for several hours, demonstrating the need for additional energy capacity Chilean Government publishes “National Energy Strategy 2012-2030: Energy for the Future,” a policy document outlining its energy strategy over the coming two decades. Source: Government of Chile, “National Energy Strategy 2012-2030: Energy for the Future” MW of wind power, more than quadrupling the country’s installed capacity of these technologies in 2011. The renewable energy sector is also being driven increasingly by supportive government policies. Chile’s recently announced National Energy Strategy, a key part of President Pinera’s economic development agenda, laid out a clear commitment to renewable energy development. If followed, the strategy would likely create a strong RE&EE market, creating new export opportunities for American firms. Policy The Chilean energy sector is largely governed by the 2006 General Law on Electricity Services, which defined non- conventional renewable energy as renewable energy except large hydropower over 40 MW.17 In 2008, the Chilean 17 Country Energy Profile: Chile – Clean Energy Information Portal (www.reegle.info/countries/chile-energy-profile/CL Government added to the 2006 law by passing its first renewable energy act (Act No.20.257), which established a renewable portfolio standard (RPS) requiring utilities to obtain 5% of their electricity from non-conventional renewable energy sources by 2014.18 The RPS was set to increase 0.5% per year until a 10% overall mandate was achieved by 2024.19 The law also called for the use of large hydropower to increase, with the hope that large dams could produce 45% of Chile’s energy by 2024.20 In 2010, Chile bolstered its support of the sector by creating the Ministry of Energy and Ministry of the Environment. In addition, the Chilean Energy Efficiency Agency (ACHEE) was formed, transforming the National 18 Presentation by Chilean Embassy in Washington, DC entitled “Energy Policy in Chile” (received in person on 19 December 2012) 19 Marcelo, H. Orellana, U.S. Foreign Commercial Service, “Chile: Solar Energy Industry,” pp. 1 (December 2011) 20 Government of Chile, “National Energy Strategy 2012-2030: Energy for the Future,” pp. 13 (February 2012) Manufacturing and Services — Market Intelligence 4PDF Image | Saudi Arabia’s Electricity Market and Opportunities
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