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Chile’s Renewable Energy and Energy Efficiency Market: Opportunities for U.S. Exporters What is more, as tidal and ocean energy technologies become increasingly commercialized, few countries offer as much potential to deploy these technologies as Chile. To the extent that U.S. firms that are developing ocean energy technologies can interact with Chilean policy-makers and project developers, the better positioned they will be to capture opportunities in this market once it develops. Biomass/Biofuels To date, Chile’s use of biomass energy is mainly in the area of co-production from industrial waste for the pulp and paper industry.73 In fact, Chile’s forest industry has become so cost-efficient at converting its waste to electricity that it abandoned efforts to convert it to second-generation biofuels.74 As of June 2012, Chile had 278MW of installed capacity of biomass power with an additional 170MW under construction.75 Landfill gas and agricultural waste are also being targeted for bioenergy. However, only 76MW of future projects were in the pipeline. Compared to other sectors such as wind and solar, which have thousands of megawatts planned, biomass does not appear to be a high growth sector for Chile.76 In the area of biofuels, Chile took no interest in first- generation biofuels, due to its limited agricultural resources.77 However, three government-funded consortia are focused on producing biodiesel from algae, as well as several private sector initiatives, including the use of technology imported from the United States. Energy Efficiency In addition to renewable energy power production, Chile provides a significant opportunity for U.S. companies capable of improving the efficiency of its energy consumers. The country’s high energy prices and consistent government support for efficiency provides a captive audience for companies that can offer an innovative product or service. 73 Country Energy Profile: Chile – Clean Energy Information Portal (www.reegle.info/countries/chile-energy-profile/CL 74 Evolution of biofuels in Chile, USDA Foreign Agricultural Service, March 9, 2012, p. 4. http://gain.fas.usda.gov/Recent GAIN Publications/ Evolution of biofuels in Chile_Santiago_Chile_3-9-2012.pdf 75 Rudnick, Hugh, Presentation January 22, 2013 “Direct Line Webchat on Renewable Energy Opportunities in Chile,” slide 10 76 Ibid 77 Evolution of biofuels in Chile, USDA Foreign Agricultural Service, March 9, 2012, p. 3 Chile’s focus on energy efficiency dates back to 2005 when the government created the National Energy Efficiency Program (Programa Pais de Eficiencia Energetica, PPEE), which was implemented for five years before becoming the Chilean Agency for Energy Efficiency. The Agency is designed to strengthen the public-private partnerships needed to improve the efficiency of the Chilean economy and to help meet the National Energy Strategy’s call to decrease Chile’s energy intensity by 12% by 2020, decreasing Chile’s expected energy demand by 1,122 MW.78 In 2012, the Chilean government announced its Energy Efficiency Action Plan 2012-2020, which contained four key action items and provides a window into the thinking of the country’s policy-makers.79 First, the plan called for improvements in the “green buildings sector,” including social housing. The action plan aimed to reduce the energy intensity of already constructed buildings, to design buildings to new, high-efficiency standards (building codes), and to offer construction products and services with efficiency criteria (labeling). The plan also called for the establishment of new residential street lighting programs to accelerate the deployment of efficiency lighting technologies in the residential and public sectors. Second, the mining sector and other industrial consumers were encouraged to adopt energy efficiency measures, including the implementation of smart energy systems, the use of cogeneration technologies at existing sites. In some instances, the government offered to provide technical assistance for projects that have a significant energy reduction impact. Third, the plan called for the transportation sector to compile data on energy use that will be used to encourage greater efficiency in passenger transport and freight. A vehicle labeling system and the setting of minimum energy efficiency standards for vehicles will also be established to support greater efficiency levels. Finally, the plan created strong appliance standards to facilitate the transformation of home appliances into low energy consumption devices through the establishment of minimum efficiency requirements and incentives for replacing old appliances. The plan called for the development of an energy efficiency seal, like Energy Star, to demonstrate the achievements of those companies who lead 78 Government of Chile, “National Energy Strategy 2012-2030: Energy for the Future,” pp. 17 (February 2012) 79 ibid, 17 Manufacturing and Services -- Market Intelligence 11PDF Image | Saudi Arabia’s Electricity Market and Opportunities
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