Originally published by Latin Lawyer
What are the principal power sources in your jurisdiction?
According to the National Energy Commission (CNE), Chile's installed generation capacity as of May 2017 was 22,769MW: 17,346MW (76.18 per cent) corresponded to the Central Interconnected System (SIC), 5,256MW (23.08 per cent) to the Norte Grande Interconnected System (SING) and 167MW (0.73 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 (56.7 per cent), followed by conventional hydroelectric power (27.1 per cent) and non-conventional renewable energies (NCRE) (16.2 per cent).
What are the current trends affecting the energy mix in your jurisdiction?
(i) The interest in NCRE-based small distributed generation units (PMGDs); (ii) cross-border power exchanges; (iii) the growth of the LNG market; (iv) the interconnection between the SIC and the SING; and (v) the upcoming delay in the Cardones-Polpaico transmission facility, which strengthen the transmission capacity of existing facilities.
What are the current forecasts for electricity demand in your jurisdiction?
According to the 2016–2031 Demand Forecast prepared by the CNE, the energy consumption in SIC will increase from 49.716TWh to 98.096TWh, which means a 97.31 per cent increase in the said period, with an annual growth of 3.46 per cent. On the other hand, according to the same forecast, energy consumption in SING will increase from 16.998TWh to 33.674TWh, meaning a 98.1 per cent increase in the 2016–2031 period, with an annual growth of 3.48 per cent.
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 government is both present and expected, since activities in all three segments: generation, transmission and distribution, are developed by private companies. Therefore, Chile's electricity market is open, and subject to the relevant regulation private entities are allowed to build and operate power plants, transmission...