Energy in Chile
Encyclopedia
Electricity sector
The electricity sector in ChileChile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
relies predominantly on hydro-electric power generation (~60% of generated energy in 2006), whilst classical thermal power plant account for the remainder (20% gas and 17% coal).
Faced with natural gas shortages that have the potential to jeopardize electricity supply, Chile is currently building its first LNG terminal to secure a supply for its existing and upcoming gas-fired thermal plants. In addition, it has engaged in the construction of several new hydropower and coal-fired thermal plants.
Chile’s successful electricity sector reform, which served as a model for other countries, was carried out in the first half of the 1980s. Vertical and horizontal unbundling of generation
Electricity generation
Electricity generation is the process of generating electric energy from other forms of energy.The fundamental principles of electricity generation were discovered during the 1820s and early 1830s by the British scientist Michael Faraday...
, transmission and distribution
Electricity distribution
File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumers...
and large scale privatization led to soaring private investment. However, in recent years, there has been a substantial modification of the 1982 Electricity Act, to bring it line with developments of the last 20 years in the sector. This was the result of a pressing need to change.
Renewable energy and energy efficiency
USDOE announced on June 23, 2009 that U.S. Energy Secretary Chu has signed a Memorandum of Cooperation with Minister Marcelo Tokman of the Chilean National Energy Commission to further collaboration between the two nations. The memorandum establishes an institutional framework between Chile and the United States, allowing DOE to provide its technical expertise in support of a new Renewable Energy Center in Chile. The new center will work to identify developments and best practices in renewable energyRenewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
technologies from around the world, disseminating its findings within Chile and throughout the region.
The two countries will also collaborate on other high-priority energy issues, including energy efficiency
Efficient energy use
Efficient energy use, sometimes simply called energy efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature...
technologies and the establishment of two pilot solar power projects in northern Chile.