Electricity Projects & Regulation 2016 – Chile - Energy and Natural Resources - Chile Law Articles in English - Mondaq Business Briefing - Books and Journals - VLEX 653433849

Electricity Projects & Regulation 2016 – Chile

Author:Latin Lawyer
Profession:Carey
 
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  1. What are the principal power sources in your jurisdiction?

    According to the National Energy Commission (CNE), Chile's installed generation capacity as of April 2016 was 20,080MW: 15,852MW (79 per cent) corresponded to the SIC (Central Interconnected System), 4,062MW (20.2 per cent) to the Norte Grande Interconnected System (SING) and 166MW (0.8 per cent) was distributed among the Easter Island, Aysén and Magallanes electricity systems. According to the CNE, the principal power sources in the jurisdiction are thermoelectric generation (56.8 per cent), followed by conventional hydroelectric power (29.9 per cent) and nonconventional renewable energies (NCRE) (13.3 per cent).

  2. What are the current trends affecting the energy mix in your jurisdiction?

    (i)The increasing interest in NCRE-based small distributed generation units (PMGDs); (ii) crossborder power exchanges; (iii) gas exports to Argentina through the GasAndes pipeline (3 million m3 per day supplied by Enap, Endesa and Metrogas from the LNG Quintero Terminal), and through the NorAndino pipeline (1.5 million m3 per day); and (iv) the growth of the LNG market.

  3. What are the current forecasts for electricity demand in your jurisdiction?

    According to the 2015–2030 Demand Forecast prepared by the CNE, the energy consumption in SIC will increase from 49.9TWh to 88.2TWh, which means a 72.95 per cent increase in the said period, with an annual growth of 3.72 per cent. On the other hand, according to the same forecast, energy consumption in SING will increase from 16.8TWh to 32.5TWh, meaning a 93.76 per cent increase in the 2015–2030 period, with an annual growth of 4.51 per cent.

  4. Is there an open electricity market in your jurisdiction? Are any activities in the electricity market reserved for the government only? Are private entities allowed to build and operate power plants and transmission and distribution lines?

    Yes, there is an open electricity market in Chile and there are no activities in the electricity market reserved for the government only, the market-oriented energy sector in Chile is regulated by a legislative framework where only a secondary role of the authority is both present and expected, since activities in all three segments: generation, transmission and distribution, are mainly developed by private companies. Therefore, Chile's electricity market is open, and private entities are allowed to build and operate power plants, transmission and distribution lines without restrictions.

  5. What is the role and function of the regulator? Would you describe the regulator as being independent?

    There are several regulators...

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