Chile Oportunities in Energy

opportunities
in energy
Ahumada 11, 12th Floor,

Santiago - Chile
Tel: (56 - 2) 698 4254
Fax: (56 - 2) 698 9476
www.foreigninvestment.cl
w w w. f o r e i g n i n v e s t m e n t . c l
OPORTUNIDADES EN ENERGA
CHILE
CHILE
oportunidades
FOREIGN INVESTMENT COMMITTEE

The Foreign Investment Committee is the agency that represents the State of Chile in its dealings with
those investors who choose to use the Foreign Investment Statute (DL 600) as the legal mechanism for
bringing foreign direct investment (FDI) into Chile.
The Foreign Investment Committee is formed by the Ministers of Economy (who acts as president of the
Committee), Finance, Foreign Relations and Planning as well as the president of the Central Bank. Other
ministers responsible for specific economic sectors are also invited to participate in meetings whenever
deemed necessary.
Mission
To help position Chile as a highly attractive destination for foreign investment and international business
through its role in matters related to the administration and communication of the corresponding legal
norms, the development of promotional activities of different types and the preparation of information
concerning foreign investment for investors and potential investors.
Strategic objectives
To ensure the correct application of the Foreign Investment Statute in order to safeguard the rights
of both the State and foreign investors by communicating the laws terms and administering related
legal procedures: the analysis of investment applications, the signing of investment contracts and the
authorization of remittances.
CHILE
opportunities
in energy
To develop all types of initiatives to communicate, promote, coordinate and implement measures to
foster the entry of foreign investment.
To maintain an up-to-date and accurate statistical register of foreign investment under the Foreign
Investment Statute by compiling information about contracts and flows under these contracts in order
both to safeguard investors interests and to prepare statistical reports for public use.
The Executive Vice-Presidency
The Foreign Investment Committee is headed and managed by an Executive Vice-President who is
appointed by the President of the Republic.
The Executive Vice-Presidency provides general information and guidance to any investor about Chile,
its economic and social environment, legal framework and policies on FDI. When requested, it provides
information on how to begin the process of setting up a businesses in Chile as well as the procedures and
regulations to which any investor must adhere, whether signing a D.L. 600 contract or not, at the national,
regional and sector-specific levels.
In order to promote Chile as an attractive place to invest, the Executive Vice-Presidency coordinates
business missions abroad, organizes seminars and conferences and publishes regular reports about Chiles
business climate and about investment opportunities, both in print and electronic form. In developing
these promotional activities, it works with other ministries and State agencies as well as with the local
and foreign private sector.
en energa
COMIT DE INVERSIONES EXTRANJERAS

El Comit de Inversiones Extranjeras es el organismo que representa al Estado de Chile en sus tratos con
aquellos inversionistas que eligen usar el Decreto Ley 600 (D.L. 600), o Estatuto de la Inversin Extranjera,
como mecanismo para ingresar Inversin Extranjera Directa (IED) al pas.
Est conformado por los Ministros de Economa (que acta como Presidente del Comit), Hacienda,
Relaciones Exteriores, Planificacin, adems del Presidente del Banco Central.
Adicionalmente, los ministros que representan sectores econmicos especficos son invitados a participar
en las sesiones del Comit de Inversiones Extranjeras (en caso que corresponda).
Misin Institucional
Apoyar el posicionamiento de Chile como plaza de alto atractivo para la inversin extranjera y los negocios
internacionales actuando en materias relacionadas con la administracin y difusin de la normativa legal
pertinente, el desarrollo de actividades de promocin de diversa ndole y la elaboracin de informacin
relevante en materia de inversin extranjera, para inversionistas extranjeros y potenciales inversionistas.
Objetivos Estratgicos
Velar por la correcta aplicacin del Estatuto de la Inversin Extranjera con el objeto de resguardar los
derechos del Estado, como de los inversionistas extranjeros, mediante la difusin de su contenido y la
administracin de los procedimientos jurdicos vinculados a ste: anlisis de solicitudes, celebracin de
contratos, autorizacin de remesas.
Desarrollar todo tipo de iniciativas cuyo objeto sea informar, promocionar, coordinar y ejecutar toda
accin tendiente a incentivar el ingreso de inversin extranjera.
Mantener un registro estadstico actualizado y fidedigno de la inversin extranjera acogida al Estatuto
de la Inversin Extranjera, mediante la sistematizacin de la informacin referida a los contratos como a
los flujos de capital que se efectan con cargo a stos, con el propsito de resguardar los intereses de los
inversionistas como asimismo elaborar informes estadsticos de uso pblico.
La Vicepresidencia Ejecutiva (VECIE)
El Comit de Inversiones Extranjeras es dirigido y administrado a nivel operativo por el Vice-Presidente
Ejecutivo, quien es designado por el Presidente de la Repblica.
La Vicepresidencia Ejecutiva proporciona informacin y orientaciones generales a cualquier inversionista
respecto al pas, su ambiente econmico y social, marco jurdico y las polticas hacia la IED. Cuando se
requiere, entrega informacin sobre cmo comenzar el proceso de establecer un negocio en Chile as
como la orientacin en torno los procedimientos y las regulaciones que deben ser cumplidos por cualquier
inversionista, tanto si firman un D.L. 600 o no, a los niveles nacionales, regionales y sectoriales.
Con el objetivo de posicionar a Chile como un lugar atractivo para invertir, la Vicepresidencia Ejecutiva
coordina misiones de negocios al exterior, organiza seminarios y conferencias, y publica informes
regulares sobre el clima de negocios de Chile y oportunidades de inversin, tanto en forma impresa como
electrnica. En estas actividades promocionales, trabaja junto con otros ministerios y organismos del
Estado, as como con el sector privado local y extranjero.
CHILE
oportunidades
FOREIGN INVESTMENT COMMITTEE

The Foreign Investment Committee is the agency that represents the State of Chile in its dealings with
those investors who choose to use the Foreign Investment Statute (DL 600) as the legal mechanism for
bringing foreign direct investment (FDI) into Chile.
The Foreign Investment Committee is formed by the Ministers of Economy (who acts as president of the
Committee), Finance, Foreign Relations and Planning as well as the president of the Central Bank. Other
ministers responsible for specific economic sectors are also invited to participate in meetings whenever
deemed necessary.
Mission
To help position Chile as a highly attractive destination for foreign investment and international business
through its role in matters related to the administration and communication of the corresponding legal
norms, the development of promotional activities of different types and the preparation of information
concerning foreign investment for investors and potential investors.
Strategic objectives
To ensure the correct application of the Foreign Investment Statute in order to safeguard the rights
of both the State and foreign investors by communicating the laws terms and administering related
legal procedures: the analysis of investment applications, the signing of investment contracts and the
authorization of remittances.
CHILE
opportunities
in energy
To develop all types of initiatives to communicate, promote, coordinate and implement measures to
foster the entry of foreign investment.
To maintain an up-to-date and accurate statistical register of foreign investment under the Foreign
Investment Statute by compiling information about contracts and flows under these contracts in order
both to safeguard investors interests and to prepare statistical reports for public use.
The Executive Vice-Presidency
The Foreign Investment Committee is headed and managed by an Executive Vice-President who is
appointed by the President of the Republic.
The Executive Vice-Presidency provides general information and guidance to any investor about Chile,
its economic and social environment, legal framework and policies on FDI. When requested, it provides
information on how to begin the process of setting up a businesses in Chile as well as the procedures and
regulations to which any investor must adhere, whether signing a D.L. 600 contract or not, at the national,
regional and sector-specific levels.
In order to promote Chile as an attractive place to invest, the Executive Vice-Presidency coordinates
business missions abroad, organizes seminars and conferences and publishes regular reports about Chiles
business climate and about investment opportunities, both in print and electronic form. In developing
these promotional activities, it works with other ministries and State agencies as well as with the local
and foreign private sector.
en energa
CONTENTS / NDICE
Chiles electricity system / El sistema elctrico de Chile
CHILE, OPPORTUNITIES IN ENERGY

Foreign Investment Committee. All rights reserved.
Requests to reproduce part or all of this publication should be sent
to cie@foreigninvestment.cl.
First edition. XX copies. XX 2011.
Designed by www.vox.cl
Photos courtesy of Fundacin Imagen de Chile (www.
fundacionimagendechile.cl).
Published in Chile.
CHILE, OPORTUNIDADES EN ENERGA

Comit de Inversiones Extranjeras. Todos los derechos protegidos.
Para solicitar permiso para la reproduccin dirigirse a cie@
inversionextranjera.cl.
Primera edicin. XX copias. XX 2011.
Diseo www.vox.cl.
Fotografas cortesa de Fundacin Imagen de Chile (www.
fundacionimagendechile.cl).
Publicado en Chile.
Institutional structure: regulation and the environment

Estructura institucional: regulaciones y medioambiente
27
Alternative Renewable Energy (ARE) / Energas Renovables no Convencionales (ERNC)
33
Investment opportunities/Oportunidades de inversin
39
Foreign Direct Investment in energy / Inversin Extranjera Directa en Energa
49
CHILE
oportunidades
en energa
Chile
Chile in South America / Chile en Sudamrica
Regions / Regiones
Geography / Geografa
Arica
ARICA Y PARINACOTA
Chile is located in the extreme southwestern part of South America and stretches through the Antarctic to the
South Pole. Its most western territory is Easter Island in Oceania. Chiles varied topography ranges from the Atacama
Desert in the north, with its great mineral wealth - principally copper and nitrates - to the agricultural and winegrowing Central Valley, where the capital Santiago is located, and to the woods, mountains, lakes, glaciers and
fjords of the south.
Iquique
Venezuela
Colombia
na m a
ya
n
a
Gu urin uaya sa
S G nce
Fra
TARAPAC
Ecuador
Antofagasta
ANTOFAGASTA
Paraguay
Uruguay
Argentina
O C E A N / O C A N O PA C F I C O
Bolivia
Chile
Chile est situado en el extremo sudoccidental de Amrica del Sur y se prolonga en el continente antrtico
hasta el Polo Sur. Su provincia ms occidental es Isla de Pascua, en Oceana. Posee una diversidad topogrfica
que comprende el Desierto de Atacama por el norte que contiene gran riqueza mineral, principalmente cobre y
nitratos. El valle central, incluyendo la capital, Santiago, alberga la agricultura y vitivinicultura y hacia el sur, el pas
tiene bosques, montaas, lagos, glaciares, fiordos y canales.
Brasil
Per
Copiap
ATACAMA
La Serena
COQUIMBO
Area / Superficie
Mainland & islands / Continental e insular
Antarctic / Antrtica
Total
: 756,096 km2
: 1,250,000 km2
: 2,006,096 km2
Mainland length / Longitud continental
: 4,200 km
VALPARASO
Valparaso
LIBERTADOR GENERAL
BERNARDO OHIGGINS
Santiago
METROPOLITANA
Rancagua
Talca
Administrative divisions / Divisin poltico administrativa : 15 regions /regiones, 53 provinces/ provincias and
346 municipal districts / comunas
Government / Gobierno
MAULE
Concepcin
BO-BO
P A C I F I C
ile
ARAUCANA
Temuco
Valdivia
: The President of the Republic serves as

head of state and head of government.
Since March 2010, this post has
been held by Sebastin Piera.
Est encabezado por un Presidente de la
Repblica, quien es el jefe de Estado y de
gobierno. Desde marzo de 2010,
este cargo es ejercido por Sebastin Piera.
LOS ROS
Social
LOS LAGOS
Pto. Montt
AYSN DEL GENERAL

CARLOS IBAEZ DEL
CAMPO
Population / Poblacin
Population density / Densidad
Official language / Idioma oficial
Currency / Moneda
Literacy / Tasa de alfabetizacin
Life expectancy / Esperanza de vida
:
:
:
:
:
:
16.9 million / millones

20.4 inhabitants/km2 / habitantes por km2
Spanish / Espaol
Peso
97%
78 years / aos
:
:
:
:
:
:
:
US$203,925 million / millones

US$11,929 (IMF)
US$14,982 (IMF )
8,1%
5,2%
Coihaique
Economy / Economa
Ocano
Austral
MAGALLANES Y LA ANTRTICA
CHILENA
Pta. Arenas
GDP / PIB 2010

GDP per capita / PIB per cpita (nominal, 2010)
GDP per capita / PIB per cpita (PPP, 2010)
Unemployment rate / Tasa de desempleo 2010
GDP growth / Crecimiento del PIB (2010)
Exports / Exportaciones (2010)
Imports / Importaciones (2010)
CHILE
oportunidades
en energa
Chiles electricity system / El sistema elctrico de Chile

Over the past four decades, demand for electricity
in Chile has doubled every ten years and, if the
economy is to grow at an average annual rate of
6% - the goal set by the government in order for
the country to attain full development by 2018 its electricity matrix will again have to practically
double in size over the coming decade. Looking
further ahead to 2050, estimates suggest that it will
then need an installed capacity of 65,000-95,000
MW, up from around 15,500 MW at present.
In order to ensure a secure supply of competitive
and sustainable energy for the future, it will be
crucial for Chile to harness all its possible sources
of energy to the expansion and diversification of its
electricity matrix.
La decision de Hot Rock Limited de invertir

en el sector geotrmico de Chile se basa en la
alta calidad del ambiente comercial del pas, el
excelente potencial de los recursos volcnicos para
la generacin de energa elctrica, un poderoso
mercado que requiere generar 15.000 MWe
para los prximos 10 a 15 aos y la creciente
preocupacin de su gobierno por desarrollar la
energa geotrmica como recurso clave dentro del
mix de energas renovables disponibles
Peter Barnett
Managing Director.
Hot Rock Limited.
Consumption
Growth of demand for energy has closely mirrored
Chiles economic growth, rising at an average
annual rate of 4.2% since 1990, with a drop to
2.4% over the last ten years explained mainly by
a 1.7% contraction of GDP in 2009. The increase in
electricity consumption has, however, been even
more marked, reaching an annual average of close
to 4%.
Para lograr estos objetivos, ser crucial para Chile

asegurar el suministro de energa segura, competitiva
y sustentable, por lo que es prioritario diversificar la
matriz energtica desarrollando las diversas fuentes de
energa existentes en el pas.
Consumo
El crecimiento de la demanda energtica en Chile ha
ido prcticamente a la par de su desarrollo econmico,
con una tasa de crecimiento anual promedio de 4,2%
desde 1990, y una cada al 2,4% en los ltimos diez
aos, que se explica principalmente por la contraccin
del 1,7% del PIB en 2009. El consumo elctrico, en
tanto, ha aumentado de manera notoria, alcanzando un
promedio anual cercano al 4%.
Primary Energy Supply and GDP, 1999-2009

Consumo Primario de Energa, 1999-2009 (respecto al PIB)
160
140
Growth Index
Indice Crecimiento (1999=100)
The decision of Hot Rock Ltd. to invest in Chiles

geothermal sector reflects the high quality of the
countrys business environment, the excellent
potential of its volcanic resources for generating
electricity, a strong market that will require
15,000 MWe over the next 10 to 15 years and
the governments increasing interest in the
development of geothermal energy as a key
resource within the available mix of renewable
energies.
Durante las ltimas cuatro dcadas, Chile ha duplicado

su demanda elctrica cada diez aos. Si el pas crece a
tasas de seis por ciento promedio al ao, la meta fijada
por el Gobierno para alcanzar el desarrollo el ao 2018,
esto significar prcticamente duplicar la matriz en
la prxima dcada. Una proyeccin hacia el ao 2050,
indica que se requerirn entre 50 y 80 mil megawatts
adicionales a los 15.500 MW actuales.
120
100
80
60
40
20
0
1999
2000
TPES*
2001
2002
GDP
Source: Energy Ministry (www.minenergia.cl).

* Total primary energy supply.
2003
2004
2005
2006
2007
2008
2009
CHILE
oportunidades
en energa
The transport sector is by far Chiles largest

user of energy, accounting for 36% of final
consumption in 2009. It was followed by
manufacturing and the countrys households
(each with 22%) and mining (15%).
El principal sector en el consumo de energa en

Chile es Transporte, que registr un 36% del
consumo final en 2009. Le siguieron Industria y
el consumo Residencial (cada uno con un 22%),
y Minera (15%).
Final Energy Consumption, 2009

(By sector)
Distribucin del consumo final de energa, 2009
(Por sector econmico)
Over 70% of Chiles primary energy

consumption is supplied by hydrocarbons
(oil, natural gas and coal) which are mostly
imported. In addition, it produces energy from
some domestic sources, including principally
wood/biomass which is used for heating as
well as to produce electricity, water in form of
hydroelectricity, and the natural gas reserves
that exist in the Magallanes Region of the far
south.
Ms del 70% del consumo primario de energa

de Chile corresponde a hidrocarburos (petrleo,
gas natural y carbn), cuya mayor parte es
importada. Asimismo, el pas produce energa
a partir de fuentes locales, que incluyen
principalmente la lea/biomasa, utilizada
para calefaccin y produccin de electricidad,
agua para la generacin de hidroelectricidad,
y las reservas de gas natural de la regin de
Magallanes, en el extremo sur del pas.
Transport
36%
Primary Energy Supply, 2009

(By source)
Consumo Primario Nacional, 2009
(Por fuente energtica)
Households
22%
Wood & others

20%
Services
5%
Mining
15%
Crude oil
43%
Manufacturing
22%
Hydroelectricity
9%
Final Energy Consumption, 1990-2009

(By sector)
Evolucin del Consumo Final de Energa, 1990-2009
(Por Sector Econmico)
Coal
16%
Natural gas
12%
250,000
200,000
Comparison with industrialized countries

suggests that, as the Chilean economy
continues to expand, so too will its energy
intensity. In line with Chiles commitment to
contributing to mitigation of climate change,
efforts are, however, in place to increase
energy efficiency.
150,000
100,000
50,000
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2004 2001 2002 2003 2004 2005 2006 2007 2008 2009
Commercial, Public & Residential
Manufacturng & Mining
Transport
Una comparacin con los pases desarrollados

sugiere que, a medida que la economa chilena
contine creciendo, tambin lo har su intensidad
energtica. Alineados con el compromiso de
Chile de contribuir a la disminucin del cambio
climtico, los esfuerzos estn orientados
adems a incrementar la eficiencia energtica.
CHILE
oportunidades
11
10
en energa
Energy Intensity, 2008
(By region)
Intensidad energtica, 2008
(Por regin del mundo)
TPES/GDP (TEP/US$2 million PPP)

PES/GDP (TEP por mil US$2 PPP)
Chile
Latin America
Africa
Electricity matrix
Matriz elctrica
Chile currently has an installed electricity

generating capacity of some 15,500 MW
and a gross electricity output of over 55,000
GWh. Its matrix comprises principally
hydroelectricity and thermal generation in
coal and dual (natural gas-diesel) plants. It
also includes some new renewable energy
sources but on a much smaller scale.
Actualmente, la capacidad instalada elctrica

chilena bordea los 15 mil MW y la generacin
total bruta de electricidad supera los 55 mil
GWh. Las principales tecnologas de generacin
son la hidroelectricidad y las plantas trmicas a
carbn y duales (gas natural y diesel). Tambin
se incluyen energas renovables, aunque en
menor proporcin.
Electricity is supplied through four systems:
La electricidad es distribuida a travs de cuatro

sistemas:
Middle East
Asia
North America
Europe
0
0.05
0.1
0.15
Based on GDP growth projections for Chile

by international financial institutions, it is,
nonetheless, estimated that final energy
consumption will grow by around 3% a year
through to 2020.
0.2
0.25
0.3
0.35
Sobre la base de las proyecciones de

crecimiento del PIB realizadas por distintos
organismos financieros internacionales, se
estima, sin embargo, que el consumo de
energa crecer alrededor de un 3% anual
hacia 2020.
Base scenario
Escenario Base
400,000
350,000
300,000
TCal
250,000
200,000
150,000
100,000
50,000
0
2007
Energy industry
2010
2013
Services
0.4
Households
2015
2018
Manufacturing & mining
2020
Transport
Central Interconnected Grid (SIC).

With an installed capacity of 11,835 MW,
this covers the area between Taltal in the
north and the Chilo Archipelago in the
south, supplying over 90% of the countrys
population.
Northern Interconnected Grid (SING).

With an installed capacity of 3,575 MW, this
serves the north of the country between Arica
and Taltal.
Aysn System. This grid, with a capacity

of 49.9 MW, serves exclusively the Aysn
Region of the far south.
Magallanes System. Also in the far south,

this 99.2 MW grid serves the Magallanes
Region.
El Sistema Interconectado Central

(SIC). Con una capacidad instalada de 11.835
MW, se extiende entre Taltal en el norte y el
Archipilago de Chilo en el sur, aportando
suministro elctrico a ms del 90% de la
poblacin chilena.
El Sistema Interconectado del Norte

Grande (SING). Con una capacidad instalada
de 3.575 MW, cubre el territorio entre Arica y
Taltal.
El Sistema de Aysn. Esta red, con una

capacidad de 49,9 MW, atiende el consumo de
la Regin de Aysn en el sur del pas.
El Sistema de Magallanes. Tambin

ubicado en el extremo sur del pas, sus 99,2 MW,
abastecen a dicha regin.
CHILE
oportunidades
13
12
en energa
SIC: Installed Capacity, 2010
(By energy source)
Capacidad Instalada en el SIC, 2010
Hydro
45.2%
Oil
14.9%
Eolic
1.4%
Power generation technologies
Tecnologas de generacin
In the mid-1990s, hydroelectricity accounted

for 60% of the combined capacity of the
SIC and SING, followed by coal (27%) and
oil, gas and biomass (13%). A significant
diversification has, however, since taken place
and, by 2010, the share of hydroelectricity had
dropped to 35% while gas 1 had increased to
31%, followed by coal (16%), diesel (15%)
and biomass and wind energy (1%).
A mediados de los aos 90, la capacidad instalada

para generacin elctrica, considerando en
conjunto al SIC y el SING, era en un 60% hidrulica,
seguida por el carbn (27%), y petrleo, gas y
biomasa (13%). Sin embargo, desde entonces
se ha producido una notoria diversificacin. Para
2010 la capacidad hidrulica se redujo a un 35%,
mientras que el gas 1 se ha incrementado al 31%,
seguido por el carbn (16%), el diesel (15%) y la
biomasa y energa elica (1%).
1) Mainly dual plants which can operate with gas or diesel.
1) Mayoritariamente plantas duales, que pueden operar con gas

Biomass
1.7%
Gas
25.4%
o disel.
Coal
11.4%
SIC + SING Installed Capacity, 1996-2010

(By source)
Evolucin de la Capacidad SIC + SING en MW, 1996-2010
(Por tecnologa de generacin)
18,000
SING: Installed Capacity, 2010

(By energy source)
Distribucin de la capacidad instalada en SING, 2010
Net power per source (MW)

Energa Neta por tecnologa de generacin (MW)
6,000
16,000
5,000
14,000
4,000
12,000
10,000
3,000
8,000
2,000
6,000
4,000
1,000
2,000
0
Coal
31.8%
Gas
58.0%
1996
1997
Biomass
1998
1999
2004
Eolic
Coal
2001
Gas
2002
2003
Hydro
2004
Oil
2005
2006
2007
2008
2009
2010
Total
Oil
9.8%
Hydro
0.4%
SIC + SING % Installed Capacity, 1996-2010 (By source)

% de Capacidad Instalada (Por tipo de tecnologa)
SIC + SING
1996
1997
1998
1999
...
2010
Biomass
Coal
Eolic
Gas
Hydro
Oil
Total
0.9%
27.1%
0.0%
3.1%
62.0%
6.8%
100%
0.9%
26.8%
0.0%
8.2%
57.8%
6.3%
100%
0.7%
25.9%
0.0%
16.2%
51.8%
5.4%
100%
0.7%
25.9%
0.0%
19.7%
48.4%
5.3%
100%
...
...
...
...
...
...
...
1.3%
16.2%
1.0%
31.2%
34.8%
15.5%
100%
CHILE
oportunidades
15
14
en energa
Hydroelectricitys importance in Chiles energy

matrix has always implied a supply risk due to
variations in hydrology. Calculations based on
historic hydrological data indicate that Chiles
present installed hydro capacity represents an
output of 30,000 GWh during a wet period but
can drop to a third of that level in a dry period.
Starting in 1998, natural gas was introduced
as an alternative to coal-fired generation and
peaked at 36% of total output in 2004 before
starting to drop again due to restrictions
on supply from Argentina. This, moreover,
coincided with a dry period, triggering
an increase in the use of oil derivatives,
particularly diesel, with generators converting
plants originally designed for natural gas to
dual use as well as investing in back-up diesel
capacity.
Gas supply restrictions also meant renewed
investment in coal-fired capacity. However,
the use of gas to generate electricity again
increased in 2009, rising by close to 70% over
the previous year. This reflected the start of
operations of the Quintero LNG regasification
terminal, with an output of 500 million m3 in
2009. In 2010, alternative renewable energy
(ARE) sources accounted for 4.2% of the
SICs matrix, represented principally by wind
projects (325 GWh).
La importante participacin de la hidroelectricidad

dentro de la generacin elctrica en Chile siempre ha
implicado un elemento de riesgo en el abastecimiento,
debido a la variabilidad en la hidrologa. Los
antecedentes hidrolgicos de las ltimas dcadas
muestran que la disponibilidad de recursos para
generacin hdrica alcanza a los 30.000 GWh en un
ciclo lluvioso, pero puede caer a un tercio de ese nivel
en uno seco.
A partir de 1998, el gas natural fue introducido en el
pas como alternativa al carbn, y alcanz un peak de
generacin de 36% en el 2004, para luego caer debido
a los recortes en el abastecimiento desde Argentina.
Esto, adems, coincidi con un perodo de sequa,
gatillando un incremento en el uso de derivados del
petrleo, particularmente diesel, y la reconversin por
parte de las generadoras de las plantas originalmente
diseadas para gas natural a un sistema dual, as como
inversiones en capacidad de operacin de emergencia
con diesel.
Las restricciones en el abastecimiento de gas tambin
se tradujeron en nuevas inversiones en capacidad de
generacin a travs de carbn. Sin embargo, el uso de
gas para la generacin elctrica volvi a aumentar en
2009, elevndose cerca de un 70% en relacin al ao
anterior. Esto debido a la entrada en operacin del
Terminal de Regasificacin de GNL de Quintero, que
produjo cerca de 500 millones de m3 durante el 2009.
En el 2010, el aporte de generacin de las Energas
Renovables No Convencionales (ERNC) lleg al 4,2%
del SIC, gracias al alza del soporte elico (325 GWh).
Increased installed capacity

A moderate rise in investment in installed
capacity in 2009 has been followed by a
sustained increase in new projects. Generation
in the SIC rose by 3.5% in 2010 to 43,226
GWh while the SING saw an increase of 1.2%
to 15,986 GWh, according to their respective
Load Dispatch Centers (CDEC).
In view of the number of generation and
transmission projects in the SIC that
have obtained a positive Environmental
Para hacer frente a ambas dificultades, tanto las

restricciones de envo de gas, como los aos secos,
se increment la generacin con derivados de
petrleo, especialmente diesel. Esto fue posible
por las inversiones en dualizacin de las centrales
originalmente diseadas para funcionar utilizando gas
natural, as como a la inversin en turbinas y grupos
electrgenos.
Mayor capacidad instalada
El moderado incremento de las inversiones en la
capacidad instalada en 2009, ha dado paso a un
Qualification Resolution (RCA) from the

Environmental Impact Evaluation System
(SEIA) and are under construction, electricity
supply in this grid is expected to show an
important increase over the next few years.
sostenido aumento en los nuevos proyectos. La

generacin elctrica en el SIC experiment un alza
del 3,5% en 2010 a 43.226 GWh, mientras que en el
SING aument un 1,2% a 15.986 GWh, segn cifras
del Centro de Despacho Econmico de Carga (CDEC).
Considerando la cantidad de proyectos de generacin
y transmisin en construccin en el SIC que han
obtenido una Resolucin de Calificacin Ambiental
(RCA) positiva en el Sistema de Evaluacin de Impacto
Ambiental (SEIA), se estima que la oferta elctrica
tendr un aumento importante en los prximos aos.
Projects under Construction in the SIC, 2011-2014

(By starting date)
Instalaciones en construccin en el SIC, 2011-2014
(Por mes de inicio)
Starting date
Month
Year
May
May
June
June
August
November
December
December
March
March
April
June
August
March
December
June
2011
2011
2011
2011
2011
2011
2011
2011
2012
2012
2012
2012
2012
2013
2013
2014
Starting date
Month
Year
April
August
October
October
January
April
April
July
July
2011
2011
2011
2011
2012
2012
2012
2013
2013
Generation projects
La Higuera (*)
Confluencia (*)
Punta Colorada Wind Farm
Quemchi
Los Colorados 2
Bocamina 02
Chacayes
Santa Mara
Rucatayo
Viales
Laja I
San Andrs
Pulelfu
Campiche
Angostura
San Pedro
Capacity
MW
153
159
20
3
10
342
106
343
60
32
36.8
40
9.4
242
316
144
Transmission projects (**)
Capacity
MVA
Polpaico Substation: installation of second autotransformer (500/220 kV)

Nogales-Polpaico Line (2x220 kV)
A. Jahuel-Chena Line (220 kV): change of conductor
Section of Chena-Cerro Navia Line (2x220 kV): change of conductor
Ancoa-Polpaico Line (1x500 kV): sectioning
Entry line to A. Jahuel (2x500 kV)
Cerro Navia Substation: installation of flow control equipment
Ancoa-A. Jahuel Line (2x500 kV): first circuit
Charra Substation (500/220 kV): 3rd autotransformer bank
750
2x1,500
400
2x400
(*) Plants currently undergoing start-up tests.

(**) Also includes trunk transmission infrastructure for which construction contracts have been awarded.
Source: Node Price Report, National Energy Commission (www.cne.cl).
2x1,800
2x350
1,400
750
CHILE
oportunidades
17
16
en energa
Sources of supply
Fuentes de suministro
The preponderance of imported energy

sources renders Chile vulnerable not only to a
supply risk but also to the impact of increases
and volatility in international prices.
La presencia preponderante de fuentes

energticas importadas somete al pas a una
exposicin importante no slo por riesgo de
suministro, sino tambin al impacto de alzas y
volatilidad de los precios internacionales.
LNG Imports, 2010

(By country of origin)
Importacin de Gas Natural Licuado 2010
(Por pas de origen)
Equatorial Guinea
6%
Egpyt
13%
Trinidad & Tobago

22%
Crude Oil Imports, 2010

Importacin de Crudo 2010
(Por pas de origen)
Peru
3%
Guinea
39%
Algeria
6%
Argentina
24%
Qatar
8%
United Kingdom
12%
Others
6%
Ecuador
14%
Brazil
31%
Colombia
16%
Source: National Energy Commission (www.cne.cl).
Coal Imports, 2010

Importacin de Carbn 2010
(Por pas de origen)
Australia
14%
Canada
3%
Indonesia
11%
Colombia
49%
United States
23%
Source: National Energy Commission (www.cne.cl).
Prices
Evolucin de los precios
The cost of imported conventional energy

sources tends to reflect variations in
international prices and, in the case of oil
derivatives (gasoline, kerosene, diesel and
liquefied gas), has shown very significant
increases. During the recent international
crisis, the prices of liquid fuels dropped
sharply but, since April 2010, have tended to
return to their pre-crisis levels.
Los precios de las fuentes convencionales

importadas suelen reflejar las variaciones en
los precios internacionales y, en el caso de los
derivados del petrleo (gasolina, kerosn, diesel
y gas licuado), han llegado a mostrar alzas
muy significativas. Durante la reciente crisis
internacional, los precios de los combustibles
tuvieron una fuerte cada pero, a partir de abril
de 2010, han apuntado a recuperar sus niveles
pre-crisis.
CHILE
oportunidades
19
18
en energa
Price of Oil Derivatives, 2000-2010 (Santiago Region)
Evolucin de precios de derivados del petrleo, 2000-2010 (Regin Metropolitana)
Marginal Electricity Costs, 2006-2010 (SIC and SING)

Evolucin de los Costos Marginales de los Sistemas Elctricos, 2006-2010 (SIC y SING)
350
90
80
300
250
50
40
30
20
200
150
Sep - 10
May - 10
Jan - 10
Sep - 09
May - 09
Jan - 09
Sep - 08
May - 08
Jan - 08
Sep - 07
May - 07
Jan - 07
Sep - 06
May - 06
Jan - 06
Sep - 05
May - 05
Liquefied gas
The marginal cost of electricity in Chile has

also shown an important increase in recent
years, due to the relative scarcity of water
and gas as well as the higher price of the
primary energy sources with which they were
replaced. After peaking in early 2008, when a
severe drought was aggravated by operating
problems at a number of plants in the SIC
and extensive use of diesel was required, it
has stabilized at an average of US$100/MWh,
reflecting the replacement of diesel by coal
and gas. In 2010, the marginal generating
cost (CMg) in the SIC averaged US$138/MWh
and, in the SING, US$122/MWh.
El costo marginal elctrico tambin ha exhibido

un alza significativa en los ltimos aos, debido
a la escasez relativa de agua y de gas, as como
al aumento en los precios de los energticos
primarios que los reemplazaron en la matriz
de generacin. Luego de un peak de precio a
comienzos de 2008, debido a una profunda
sequa que se agrav con la indisposicin de
importantes centrales en el SIC y que oblig a
suplir la demanda en un alto porcentaje en base
a diesel, el precio de la energa se estabiliz
en un valor promedio de 100 USD/MWh tras
reemplazarse el diesel por carbn y gas. Durante
2010, los costos marginales de generacin
(CMg) en el SIC promediaron los 138 por USD/
MWh y en el SING llegaron a los 122 USD/MWh.
0
06
06
06
06
06
06
06
06
06
06
06
06
07
07
07
07
07
07
07
07
07
07
07
07
08
08
08
08
08
08
08
08
08
08
08
08
09
09
09
09
09
09
09
09
09
09
09
09
10
10
10
10
10
10
10
10
10
10
10
10
Kerosene
Jan - 05
Sep - 04
May - 04
Jan - 04
Sep - 03
May - 03
Jan - 03
Sep - 02
Diesel
Source: Energy Ministry (www.minenergia.cl) based in information from National Energy Commission (www.cne.cl).
50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -
95-octane gasoline
May - 02
Jan - 02
Sep - 01
May - 01
Jan - 01
Sep - 00
May - 00
100
Jan - 00
10
CMg (US$ / MWh)
60
CMg (US$ / MWh)
Pesos/ Thousand Kcal

$/ Miles de Kcal
70
Monthly average SIC Quillota 220 (US$/MWh)
Monthly average SING Crucero 220 (US$/MWh)
Market structure
Estructura del mercado
Electricity
Elctrico
Chiles electricity industry comprises three

distinct activities: generation, transmission
and distribution. These are developed
by private companies while the State,
independently of its subsidiary role, regulates
and supervises the industry and provides
investment recommendations for generation
and transmission, principally through the
National Energy Commission (CNE), the
Electricity and Fuels Superintendency (SEC)
and the Energy Ministry.
El mercado elctrico en Chile comprende tres

actividades: la generacin, la transmisin y la
distribucin. Estas actividades son desarrolladas
por empresas privadas, mientras el Estado,
independiente de su rol subsidiario, regula y
supervisa la industria y entrega orientacin
de inversiones en generacin y transmisin,
esencialmente a travs de la Comisin Nacional de
Energa (CNE), la Superintendencia de Electricidad
y Combustibles (SEC) y el Ministerio de Energa
(Minenerga).
The generation segment is formed by the

electricity companies owning the countrys
power plants. Within this segment, there are
two distinct markets: spot and contract. In
the former, the generators trade electricity
while, in the latter, transactions are between
El segmento de generacin est constituido por

el conjunto de empresas elctricas propietarias
de centrales generadoras. Se pueden distinguir
dos mercados en este segmento: el spot y el
de contratos. El primero corresponde a los
generadores elctricos y el segundo se establece
CHILE
oportunidades
21
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en energa
In the Aysn and Magallanes Regions, there

are only two companies and one company,
respectively, which participate in the
generation, transmission and distribution
segments and serve 85,000 clients.
En las regiones de Aysn y Magallanes existen

nicamente dos empresas y una compaa,
respectivamente, participando en los segmentos
de generacin, transmisin y distribucin y
abastecen a 85 mil clientes.
Hydrocarbons
Hidrocarburos
Oil
Petrleo
El segmento de transmisin est constituido

por las empresas propietarias de infraestructura
para el transporte de electricidad desde los
generadores hasta los centros de consumo. El
sistema est, a su vez, dividido en transmisin
troncal, subtransmisin y transmisin adicional.
Las dos primeras son definidas como servicio
pblico, por lo que las empresas tienen la
obligacin de dar servicio a quien lo solicite, y son
responsables de invertir en nuevas instalaciones
o en ampliaciones de las mismas. Las empresas
que entregan transmisin adicional, en cambio,
slo tienen la obligacin de dar acceso a terceros
cuando utilizan en su trazado bienes nacionales
de uso pblico.
The oil wells currently in operation in Chile

are located in the Magallanes Basin and
correspond to three areas of mixed oil and
gas production. Natural depletion of these
wells, which mostly started production in the
1960s, meant a gradual decrease in annual
output. This situation, however, began to
change as from 2007-2008 due to renewed
prospection, carried out both directly by
the Empresa Nacional del Petrleo (ENAP),
the state oil company, and through Special
Operating Contracts (CEOPs) awarded to
private companies. In some cases, CEOPs are
being developed as a partnership between a
private company and ENAP.
Los yacimientos petrolferos explotados

actualmente en Chile estn ubicados en la Cuenca
de Magallanes, en tres zonas con produccin
mixta de petrleo y gas. El agotamiento natural
de los yacimientos, puestos en produccin
principalmente en los 60, se ha traducido en una
disminucin paulatina en su produccin anual.
Esta situacin ha comenzado a revertirse desde
2007-2008, debido a un reimpulso de la actividad
exploratoria de hidrocarburos, efectuada tanto
por la Empresa Nacional del Petrleo (ENAP) como
mediante la modalidad de Contratos Especiales
de Operacin (CEOPs) con empresas privadas.
En algunos casos, el contratista es una sociedad
entre un privado y la ENAP.
Trunk transmission and subtransmission tariffs

are regulated on the basis of four-yearly
studies. In the case of trunk transmission,
investments defined as necessary on the
basis of these studies are compulsory.
La tarificacin de los segmentos troncal y

subtransmisin es regulada mediante estudios
cuatrianuales. Para el caso del sistema de
transmisin trocal, las inversiones definidas
como necesarias en base a estos estudios son
obligatorias de realizar.
The distribution segment is formed by the

electricity companies owning infrastructure
for the distribution of power to the final
consumers located in specific geographic
areas. Distribution companies operate under
a concessions regime, with an obligation
to provide service, and are subject to tariff
regulation.
El segmento de distribucin est conformado por

el conjunto de empresas elctricas propietarias
de instalaciones destinadas a distribuir la
electricidad hasta los consumidores finales
localizados en zonas geogrficas delimitadas. Las
empresas de distribucin operan bajo un rgimen
de concesin, con obligacin de servicio y tarifas
reguladas.
Most of the crude oil used in Chile is

imported by ENAP and is processed in its
refineries. Although there is free access to
the oil refining sector, all the countrys three
refineries belong to ENAP. These are the
Aconcagua Refinery in the Valparaso Region
with a primary crude processing capacity of
16,000 m3/day, the Biobo Refinery in the
Biobo Region with a processing capacity of
18,500 m3/day, and the Gregorio Refinery
in the Magallanes Region with a capacity of
2,800 m3/day. The output of these refineries
accounts for between 75% and 85% of the
countrys normal fuel needs.
La mayor parte del crudo utilizado en Chile es

importado por ENAP y procesado en sus refineras.
Aunque existe libertad de ingreso al sector de
refinacin, las tres refineras existentes pertenecen
a ENAP. Estas son la Refinera Aconcagua ubicada
en la Regin de Valparaso con una capacidad de
procesamiento primario de crudo de 16.000 m3/
da, La Refinera Bo-Bo, emplazada en la Regin
del Bo-Bo y con una capacidad de procesamiento
de 18.500 m3/da, y la Refinera Gregorio, ubicada
en la regin de Magallanes (Refinera Gregorio),
que cuenta con una capacidad de 2.800 m3/da. La
produccin de estas refineras permite cubrir entre
el 75% y el 85% de las necesidades normales de
productos combustibles.
In the SIC, a total of 28 distributors serve some

4.7 million clients while, in the SING, there are
four distributors for 280,000 clients.
En el SIC operan 28 empresas que abastecen a

unos 4,7 millones de clientes, mientras que en
el SING lo hacen cuatro empresas para 280 mil
clientes.
generators and large final power users

(manufacturers, mining companies and
others) or companies holding distribution
concessions.
According to the latest figures, 52 companies
generate electricity in the SIC but three groups
account for close to 75% of its capacity. In
the SING, there are 11 companies and three
groups also predominate, representing 94%
of its installed capacity.
The transmission segment comprises the
companies owning infrastructure for the
transport of power from generators to centers
of consumption. The system is, in turn, divided
into trunk transmission, subtransmission and
additional transmission. The first two are
defined as a public service and companies
must, therefore, provide service to all who
request it and are responsible for investing in
new installations or expansions. Companies
providing additional transmission are,
however, only obliged to provide third-party
access when their system uses fiscal property
for public use.
entre generadores y grandes consumidores finales

(industriales, mineros y comerciales), o con las
empresas concesionarias de distribucin.
Segn los ltimos registros, 52 empresas inyectan
energa al SIC, pero tres holdings poseen cerca
del 75% de su capacidad. En el SING operan 11
empresas y nuevamente tres holdings dominan el
94% de su capacidad instalada.
Infrastructure for liquid fuels comprises

storage plants, port terminals and oil pipelines.
Within Chile, products are transported by sea
from terminals located in the Antofagasta,
Valparaso, Biobo and Magallanes Regions to
La infraestructura para combustibles lquidos

est constituida por plantas de almacenamiento,
terminales martimos y oleoductos. Dentro del
pas, los productos son transportados por medio de
cabotaje martimo desde los terminales ubicados
CHILE
oportunidades
23
22
en energa
other ports and by pipelines connecting the

Santiago Region with the refineries in the
Valparaso and Biobo Regions. In addition,
there are some intermediate storage plants.
Eight main companies operate in the oil
derivates distribution market, four in the
liquid fuel market and four in the liquefied
gas market.
en las regiones de Antofagasta, Valparaso, Bo Bo

y Magallanes, hacia los otros puertos nacionales,
y por medio de ductos que interconectan
las refineras de la Regin de Valparaso y la
Regin de Bo Bo con la Regin Metropolitana.
Adicionalmente existen algunas plantas de
almacenamiento intermedio. Las principales
empresas presentes en el mercado nacional de
distribucin de derivados de petrleo son ocho,
cuatro en combustibles lquidos y cuatro en
gas licuado.
Crude Oil Production and Imports, 1990-2009

(In teracalories)
Evolucin de la Produccin e Importaciones de Crudo, 1990-2009
(En teracaloras)
14,000
12,000
Gas
Gas
Chile has natural gas reserves in the

Magallanes Region and, since the mid1990s, has also imported gas from Argentina
through cross-border pipelines. The basic
infrastructure comprises five separate
pipeline systems in the Antofagasta,
Valparaso, Santiago, OHiggins and Biobo
Regions and seven companies operate gas
distribution networks.
Chile posee gas natural en la regin de

Magallanes, y desde mediados de los 90,
tambin importa gas desde Argentina a travs
de gasoductos internacionales. Su infraestructura
bsica est constituida por gasoductos en cinco
sistemas aislados en las regiones de Antofagasta,
Valparaso, Metropolitana, OHiggins y Bo-Bo.
Siete empresas operan las redes de distribucin
de gas.
After reaching its peak in 2004, the supply of

gas from Argentina dropped dramatically and,
by 2008, was running at less than a tenth of its
level in 2004. However, following the start of
operations of the Quintero LNG regasification
terminal in central Chile in September 2009
and the Mejillones terminal in the north in
March 2010, consumption of natural gas has
again increased.
Despus del peak de importaciones del ao

2004, el suministro argentino fue decreciendo
drsticamente y ya en 2008 llegaba a un dcimo
del nivel de 2004. Sin embargo, y luego del
comienzo de las operaciones de los terminales
de regasificacin de GNL de Quintero en la zona
central, en septiembre de 2009 y Mejillones en
el norte, en marzo de 2010, el consumo de gas
natural se ha recuperado.
10,000
Tcal
8,000
Natural Gas Production and Imports, 1990-2009

(In teracalories)
Evolucin de la Produccin e Importaciones de Gas Natural, 1990-2009
(En teracaloras)
6,000
4,000
70,000
2,000
60,000
Production
Imports
50,000
Tcal
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2004 2001 2002 2003 2004 2005 2006 2007 2008 2009
40,000

30,000
Final sale of liquid fuels takes place through

1,600 service stations around the country as
well as through direct sale to large industrial
clients. In the case of liquefied petroleum gas
(LPG), the distribution and marketing network
reaches the household level, supplying
canisters (of between five and 45 kilos)
through a door-to-door and bulk system as
well as through industrial distribution.
La comercializacin final de combustibles

lquidos se realiza a travs de las 1.600 estaciones
de expendio en todo el pas, as como por venta
directa a grandes clientes industriales. En el caso
del Gas Licuado del Petrleo (GLP), existe una
red de distribucin y comercializacin que llega
a nivel residencial con cilindros (de entre 5 y 45
kilogramos), con un sistema de puerta a puerta y
granel, adems de la distribucin industrial.
20,000
10,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2004 2001 2002 2003 2004 2005 2006 2007 2008 2009
Production
Imports
CHILE
oportunidades
25
24
en energa
Mineral coal
Carbn Mineral
Chile consumes over 39,946 teracalories of

mineral coal of which 90% is imported. Local
production has been declining and, between
1991 and 2009, showed a drop of around
76%.
Chile consume ms de 39.946 teracaloras de

carbn mineral, de las cuales el 90% corresponde
a importaciones. La produccin local ha decado
y, entre 1991 y 2009, registr una reduccin
cercana al 76%.
The main coal users are electricity generators

which account for 86% of imports. Domestic
supply is led by the state-owned Empresa
Nacional del Carbn (ENACAR) which, through
its operations in Lebu, markets the output
of small and micro-producers in the Biobo
Region to industrial users.
Los principales consumidores de carbn son las

generadoras de energa elctrica, responsables
del 86% de las importaciones. La produccin
nacional es encabezada por la estatal Empresa
Nacional del Carbn (ENACAR) que, a travs de sus
operaciones en Lebu, comercializa la produccin
de la pequea y micro minera de la Regin del
Bo-Bo entre consumidores industriales.
Coal Production and Imports, 1990-2009

(In teracalories)
Evolucin de la Produccin e Importaciones de Carbn, 1990-2009
(En teracaloras)
70,000
60,000
Tcal
50,000
40,000
30,000
20,000
10,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2004 2001 2002 2003 2004 2005 2006 2007 2008 2009
Production
Imports
CHILE
oportunidades
en energa
26
Several factors explain our decision to

invest in Chile: the nature of the assets
available in the infrastructure sector, the
stability of the regulatory framework
in its respect for the owner of assets,
the stability of the political system, the
integrity and work ethic of Chileans and
the rule of law.
Pesan varios factores sobre nuestra

decisin de invertir capital en Chile:
la naturaleza de los activos que
pueden adquirirse en el sector de
infraestructura, la estabilidad del marco
regulatorio en su respeto al dueo de
los activos, la estabilidad del sistema
poltico, la integridad y tica laboral de
los chilenos y la existencia del Estado de
Derecho.
Jeffrey Blinder
Senior Managing Partner.
Brookfield Asset Management Inc.
27
Institutional structure: regulation and the environment

Estructura institucional: regulaciones y medioambiente
A number of institutions play a role in En la rectora, regulacin y fiscalizacin del
regulating and supervising the energy sector: sector energtico, participan diversos actores
institucionales:
Energy Ministry (www.minenergia.cl).
The maximum body for supporting the President of the

Republic in governing and managing the energy sector, it is responsible for drawing up and coordinating plans,
policies and norms for the sectors proper operation and development, ensuring compliance with these plans,
policies and norms, and advising the government on all matters related to energy.
Ministerio de Energa (www.minenergia.cl). El organismo superior que apoya al Presidente de la

Repblica en las funciones de gobierno y administracin del sector energtico. Debe elaborar y coordinar los
planes, polticas y normas para el buen funcionamiento y desarrollo del sector, velar por su cumplimiento y
asesorar al Gobierno en todas aquellas materias relacionadas con la energa.
National Energy Commission (CNE) (www.cne.cl). A decentralized public service, it is responsible

for analyzing the prices, tariffs and technical norms to which companies producing, generating, transporting and
distributing energy must adhere in order to ensure a sufficient, secure and high-quality service compatible with
lowest-cost operation.
La Comisin Nacional de Energa (CNE) (www.cne.cl).
Servicio pblico descentralizado

encargado de analizar precios, tarifas y normas tcnicas a las que deben ceirse las empresas de produccin,
generacin, transporte y distribucin de energa, con el objeto de disponer de un servicio suficiente, seguro y de
calidad, compatible con la operacin ms econmica.
Mining Ministry (www.minmineria.gob.cl). This Ministry has powers in the definition of policies,
plans and norms relating to hydrocarbons, nuclear energy and geothermal energy.
Ministerio de Minera (www.minmineria.gob.cl). Este ministerio posee competencias en la

definicin de polticas, planes y normas en materia de hidrocarburos, energa nuclear y geotermia.
Electricity and Fuels Superintendency (SEC) (www.sec.cl). A decentralized public service, it is
responsible for inspecting and supervising compliance with norms on liquid fuels, gas and electricity.
Superintendencia de Electricidad y Combustibles (SEC) (www.sec.cl). Es un servicio pblico

descentralizado, cuya funcin es fiscalizar y supervigilar el cumplimiento de las normas sobre combustibles
lquidos, gas y electricidad.
Chilean Nuclear Energy Commission (CCHEN) (www.cchen.cl). A decentralized public

service, it is responsible for the development of nuclear science and technology as well as for the production,
acquisition, transfer, transport and pacific use of atomic energy.
Comisin Chilena de Energa Nuclear (CCHEN) (www.cchen.cl).
Es un servicio pblico
descentralizado, responsable del desarrollo de la ciencia y la tecnologa nuclear. Se ocupa de la produccin,
adquisicin, transferencia, transporte y uso pacfico de la energa atmica.
CHILE
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Regulatory framework
Marco regulatorio
Distribution
Distribucin
Generation
Generacin
The regulatory model for the generation

segment is based on the principle that
investments are the result of private
initiatives undertaken in response to the
economic signals provided by the market. In
line with this, reference prices are set twice a
year and are adjusted through index-linking.
Under the regulation in force, concessions
or special permits are not required for the
installation of generating units or their
ancillary infrastructure and they must
only obtain the authorizations required for
any industrial installation, including the
corresponding environmental permits, and
comply with the Technical Safety and Service
Quality Norm (NTSyCS) for their connection
to the grid.
El modelo regulatorio del segmento de

generacin del sector elctrico se basa en el
principio de que las inversiones nacen a partir
de la iniciativa de privados como respuesta a
las seales econmicas que entrega el mercado.
Acorde a esto, los precios de referencia del sector
son fijados dos veces al ao y se actualizan va
indexaciones. La normativa vigente no exige
una concesin ni un permiso especial para
la instalacin de unidades de generacin ni
de sus obras anexas, slo deben obtener las
autorizaciones a las que est sujeta cualquier
instalacin industrial, incluidos los permisos
ambientales correspondientes y cumplir con las
exigencias de la Norma Tcnica de Seguridad y
Calidad de Servicio (NTSy CS) para su conexin
a la Red.
Distribution infrastructure can be installed,

operated and exploited only under a Public
Service Concession. This may be provisional
or definitive and is granted by the SEC or the
Energy Ministry, respectively. However, public
service activities, such as street lighting, do
not require a concession.
Las instalaciones de distribucin elctrica

pueden ser establecidas, operadas y explotadas
slo mediante una Concesin de Servicio
Pblico. Esta puede ser provisional o definitiva
y se solicita a la SEC o al Ministerio de Energa,
respectivamente. No obstante, las operaciones
de servicio pblico, como el alumbrado pblico,
no requieren una solicitud de concesin.
Transmisin
Transmission
Transmission infrastructure is divided into
three categories: the trunk system, which is
of common use; subtransmission systems,
which supply distribution concession areas;
and, the so-called additional systems, which
supply only a few clients not subject to price
regulation.
La infraestructura para la transmisin se divide

en tres categoras: las que conforman el Sistema
Troncal, o de uso comn; las que conforman los
sistemas de Subtransmisin, que abastecen las
zonas de distribucin; y las que constituyen los
llamados sistemas adicionales, de uso restringido
al servicio de pocos clientes no sometidos a
regulacin de precios.
Transmission infrastructure may, but not

necessarily, take the form of a concession.
In the former case, all the administrative
formalities required to bring it on line are
facilitated. By decree, trunk transmission
companies are responsible for expansions
of their infrastructure and must tender its
construction to companies qualified under
mechanisms that are open and can be audited
by the SEC.
Las instalaciones de transmisin pueden ser

concesionadas o no. En el primer caso, se
facilita todas las tramitaciones administrativas
requeridas para su puesta en servicio. Las
empresas de transmisin en el sistema troncal
son, por decreto, responsables de realizar
las obras de ampliacin, debiendo licitar la
construccin de las obras a empresas calificadas
a travs de mecanismos abiertos y auditables
por la SEC.
Hydrocarbons
Hidrocarburos
The regulatory model for the hydrocarbons

sector has its root in Chiles political
constitution which reserves their ownership
to the State. Concessions may be awarded
for the exploration and/or exploitation
of coal deposits but liquid and gaseous
hydrocarbons must be exploited directly
by the State or state-owned companies or
through Special Operating Contracts (CEOPs)
awarded to private companies. The refining,
distribution, marketing, storage and transport
of hydrocarbons are not, however, subject to
restrictions.
El modelo regulatorio del sector de los

hidrocarburos se sostiene sobre la propia
Constitucin Poltica de Chile, que pone en
dominio exclusivo del Estado su propiedad. Se
puede obtener concesiones para la exploracin
y explotacin de depsitos de carbn, pero los
hidrocarburos lquidos y gaseosos deben ser
explotados directamente por el Estado o sus
empresas por medio de Contratos Especiales
de Operacin Petrolera (CEOP) con firmas
privadas. La regulacin establece libertad de
emprendimiento en refinacin, distribucin,
comercializacin, almacenamiento y transporte.
Gas distribution networks

Gas de red
Gas transport and distribution networks,

however, require a concession that stipulates
supply continuity. Companies are, moreover,
obliged to provide open access to their spare
capacity but are free to set their tariffs.
El transporte y distribucin de gas de red requieren

una concesin, la que exige la continuidad de
suministro. Las empresas tienen la obligacin
de dar acceso abierto a su capacidad remanente
disponible pero son libres para elegir sus tarifas.
Environmental regulation
Normas medioambientales
The basic regulatory tool for the sustainable

development of energy projects in Chile is
the Environmental Impact Evaluation System
(SEIA). Under Chilean law, all investment
projects and/or their significant modification
must submit to a process of evaluation
of their impacts and compliance with
environmental norms. On obtaining a favorable
Environmental Qualification Resolution (RCA),
they may implement the project subject to
La herramienta reguladora bsica para el

desarrollo sustentable de los proyectos
energticos es el Sistema de Evaluacin de Impacto
Ambiental (SEIA). La ley chilena establece que todos
los proyectos de inversin y/o las modificaciones
de consideracin de stos, deben someterse a un
proceso de evaluacin respecto de sus impactos y
cumplir con las normas ambientales. De obtener
una Resolucin de Calificacin Ambiental, podrn
implementar el proyecto sujeto a las condiciones que
CHILE
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the conditions it establishes.
dicha resolucin establezca.
The following types of energy projects are

subject to evaluation of their environmental
impact:
Se deben someter a evaluacin de impacto

ambiental los siguientes tipos de proyectos del
sector de energa:
High-voltage transmission lines and their substations.

Lneas de transmisin elctrica de alto voltaje y sus subestaciones.
Generating plants with a capacity of more than 3 MW.
Centrales generadoras de energa mayores a 3 MW.
Nuclear reactors and installations and their related facilities.
Reactores y establecimientos nucleares e instalaciones relacionadas.
Fuel port terminals.
Terminales martimos de combustibles.
Mining exploration and exploitation projects including coal, oil and gas.
Proyectos de desarrollo minero incluidos carbn, petrleo y gas, tanto prospecciones como explotaciones.
Oil, gas, mining and other similar pipelines.
Oleoductos, gasoductos, ductos mineros u otros anlogos.
Habitual production, storage, transport, disposal or reuse of toxic, explosive, radioactive, inflammable, corrosive
or reactive substances.
Produccin, almacenamiento, transporte, disposicin o reutilizacin habituales de sustancias txicas, explosivas, radioactivas, inflamables, corrosivas o reactivas.
Projects, programs or activities in national parks or reserves, virgin areas, nature sanctuaries, marine parks or
other officially protected areas, if permitted under the law.
Ejecucin de obras, programas o actividades en parques nacionales, reservas, monumentos, zonas vrgenes,
santuarios de la naturaleza, parques marinos u otras reas protegidas oficialmente si la legislacin lo permite.
Chile has signed most international protocols

and agreements on protection of the
environment. These include the UN Framework
Convention on Climate Change and the Kyoto
Protocol.
Chile ha suscrito la mayora de los protocolos y

acuerdos internacionales que buscan proteger al
medio ambiente. Estos incluyen la Convencin
Marco de Naciones Unidas para el Cambio
Climtico y el Protocolo de Kyoto.
CHILE
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en energa
Alternative Renewable Energy (ARE)

Energas Renovables No Convencionales (ERNC)
It will depend on how prices evolve

but the potential for investment in
solar energy is, in principle, almost
unlimited or, rather, it will be capped
by the capacity of the electricity
system to absorb the energy.
Obviously, this growth will take place
gradually over the next decade.
Habr que ver cmo evolucionan los

precios, pero a priori el potencial de la
inversin solar es casi ilimitado, o ms
bien, la limitacin vendr dada por
la capacidad de acogida de energa
por parte del sistema elctrico de
Chile. Y obviamente este crecimiento
ser progresivo durante la prxima
dcada.
Renewable energy is defined as energy

obtained from natural sources that are
inexhaustible over a human timescale, are
not fossil fuels or have the capacity for
replenishment. Specifically, it comprises
hydraulic, eolic, solar, ocean and geothermal
energy and that generated from biomass.
Chile has long experience in the use of these
sources, principally as regards hydroelectricity
and, to a lesser extent, biomass.
Las fuentes de energa renovable se definen

como aquellas obtenidas de fuentes naturales
inagotables a la escala de tiempo humana, no
fsiles, o con capacidad de regenerarse. Se
trata puntualmente de la energa hidrulica,
elica, solar, martima, geotrmica y de biomasa.
Chile tiene una larga experiencia en el uso
de estas energas para generacin elctrica,
fundamentalmente la hidrulica y, en menor
medida, la biomasa.
Another group of renewable sources, known

as Alternative Renewable Energies (AREs),
corresponds to sources or combinations
of sources and technologies that are not
yet widely used in Chile. These are also
known internationally as new energy
sources and, in general, have significantly
less environmental impact than traditional
sources for generating electricity.
Existe otro conjunto de fuentes renovables

denominadas
Energas
Renovables
No
Convencionales (ERNC), las que corresponden a
aquellas fuentes o combinaciones de fuentes de
energa y de tecnologa, no extendidas en el pas.
stas coinciden con las que internacionalmente
suelen denominarse nuevas fuentes de energa,
la mayora de las cuales tienen impactos
ambientales considerablemente menores que
las formas tradicionales de generacin elctrica.
In Chile, Law N 20.257 defined ARE projects

as those having an installed capacity of up
to 40 MW. This definition excludes large
hydroelectric projects which, although using
a renewable source, are also conventional
projects.
En Chile, la Ley 20.257 estableci como ERNC

a los proyectos de hasta 40 MW de capacidad
instalada. La definicin anterior excluye los
grandes proyectos hidroelctricos, los que si
bien corresponden a fuentes renovables, son a la
vez proyectos convencionales.
Looking to the future

Mirada de futuro
Jon Segovia
Managing partner.
Solarpack.
Chiles goal today is to diversify its sources

of energy supply in the medium to long
term. Under this strategy, it is seeking to
achieve a certain level of independence,
developing domestic sources and, in line with
international trends, fostering the use of
Hoy Chile tiene como meta diversificar sus

fuentes de suministro energtico en el mediano
a largo plazo. Acorde a esta estrategia, el
pas busca lograr un nivel de independencia,
desarrollando fuentes nacionales y, acorde la
tendencia internacional, fomentando el uso de
energas limpias.
CHILE
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en energa
To this end, it needs to continue advancing in

the following lines of work:
Para tal efecto, se requiere avanzar en las

siguientes lneas de trabajo:
Regulatory improvements to eliminate barriers to ARE projects and foster their integration into energy markets.
Perfeccionamiento de los marcos regulatorios para eliminar las barreras a los proyectos de ERNC y fomentar su
integracin en los mercados energticos.
Development of instruments to promote and support investment in AREs.
Desarrollo de instrumentos para promover y apoyar la inversin en ERNC.
Provision of information for investors (such as data on the potential of renewable sources and implementation
and environmental evaluation manuals).
Levantamiento de informacin para los inversionistas (como informacin sobre potenciales fuentes renovables
y guas de implementacin y de evaluacin ambiental).
In recent years, the conditions for the

development of AREs in Chile have improved
significantly and this is reflected in the
growing interest of local and overseas
investors in projects of this type. Some
projects, using wind energy and biogas, have
already started operations in the SIC as well
as small hydroelectric and biomass plants.
En los ltimos aos, las condiciones para el

desarrollo de las ERNC en Chile han mejorado
significativamente, lo que se est traduciendo
en un creciente inters de inversionistas
nacionales y extranjeros en el desarrollo de
proyectos de este tipo. Algunos proyectos
que utilizan energa elica y biogs ya se han
puesto en marcha en el SIC, as como centrales
hidroelctricas pequeas y de biomasa.
Installed capacity
Capacidad instalada
At present, 63% of Chiles installed capacity

is thermal while conventional hydroelectric
plants account for 33.4% and the remainder
uses alternative renewable sources. These
comprise principally biomass plants, some
small hydroelectric plants and wind farms.
Actualmente, el 63% de la capacidad de

generacin instalada en Chile corresponde
a plantas trmicas, mientras que la energa
hidrulica convencional alcanza a 33,4%.
El resto corresponde a fuentes renovables
alternativas, que incluyen principalmente
centrales de biomasa, hidroelctricas pequeas
y parques elicos.
Installed Capacity of ARE Plants Larger than 1.5 MW (As of December 2010)
Capacidad instalada de generacin elctrica de ERNC para sistemas elctricos mayores a 1,5 MW (A diciembre de 2010).
Net capacity (MW)
Aysn
ARE
Biomass
Eolic
ARE Hydro
Conventional Hydro
Hydroelectricity
Thermoelectricity
Thermoelectricity
Total
Magallanes
21.0
2.3
2.0
19.0
2.34*
28.0
28.0
49.0
89.1
89.1
91.4
SIC
509.0
206.5
160.5
142.0
5,199.8
5,199.8
6,125.8
6,125.8
11,834.6
Source: Energy Ministry (www.minenergia.cl) based on information from National Energy Commission (www.cne.cl).
* For generators own consumption.
SING
14.9
14.9
3,559.9
3,559.9
3,574.9
Total
547.2
206.5
164.8
175.9
5,199.8
5,199.8
9,802.8
9,802.8
15,549.8
Projects under development
Proyectos en desarrollo
Between 2007 and 2010, at least 30 ARE

projects started operation, with particularly
marked progress in the case of wind farms
of which 175 MW have so far been installed
in the SIC. A further 26 projects are currently
seeking environmental approval and would
represent an additional 800 MW.
Entre los aos 2007 y 2010, han entrado en

operacin al menos 30 proyectos de ERNC,
con un avance evidente en el caso de los
parques elicos, que a la fecha totalizan 175
MW de capacidad instalada en el SIC. Unos 26
proyectos ERNC se encuentran en calificacin
y, una vez aprobados, sumaran 800 MW
adicionales.
New ARE Capacity, 2007-2010

Centrales ERNC que entraron en operacin, 2007-2010
Project
Loma Los Colorados
Constitucin
Laja
Escuadrn (Ex Fpc)
Nueva Aldea III
Canela 1
Canela 2
Cristoro
Totoral
Monte Redondo Wind Farm
El Rincn
Puclaro
El Manzano
Lircay
Coya U5
Chiburgo
Truful - Truful
Ojos de Agua
Palmucho
El Trtaro
Guaycan Hydroelectric Plant
La Paloma
Trueno
Los Corrales
Alto Hospicio
Toro 2
Hidroelectrica Dongo SPA
Mariposas hydroelectric plant
San Clemente plant
Doa Hilda
Company
KDM Energa y Servicios S.A.
Energa Verde S.A.
Energa Verde S.A.
Elctrica Nueva Energa
Celulosa Arauco y Constitucin S.A.
Central Elica Canela S.A.
Central Elica Canela S.A.
Cristaleras Toro S.A.C.I
NORVIND S.A.
Eolica Monte Redondo S.A.
Sociedad del Canal de Maipo
Hidroelectrica Puclaro S.A.
Hidroelectrica El Manzano S.A.
Hidromaule S.A.
Hidroelectrica Cachapoal S.A.
Colbn S.A.
HIDROELEC S.A.
ENDESA ECO S.A.
ENDESA
wenke y CIA Limitada
Energa Coyanco S.A.
Hidropaloma S.A.
Hidroelectrica Trueno S.A.
SGA
Enernuevas S.A.
Enernuevas S.A.
Inversiones Navitas Holdings
Hidroelectrica Rio Lircay
Colbn S.A.
Ganadera y Forestal Carran Ltda.
Primary
energy
source
Biogas
Biomass
Biomass
Biomass
Biomass
Eolic
Eolic
Eolic
Eolic
Eolic
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Type
PMGD
PMGD
PMGD
PMGD
PMGD
PMGD
PMGD
PMGD
PMGD
PMGD
Source: CDEC-SIC Survey of Means of Generation Law N 20.257, Energy Ministry (www.minenergia.cl).
(1) Real maximum potential, hydro plant of more than 20 MW; in ARE figures, a factor of 0.4 is applied to injections from this plant.
Maximum Recognized
capacity
installed
(MW)
capacity
(MW)
2
2
11.05
2.35
12.69
3.99
15
15
37
12
18.2
18.2
60
60
3.5
3.5
46
46
38
38
0.28
0.28
5.6
5.6
4.85
4.85
19
19
11
11
19.4
19.4
0.414
0.414
9
9
32 (1)
32 (1)
0.13
0.13
12
12
4.5
4.5
5.68
5.68
0.8
0.8
1.1
1.1
1.1
1.1
6
6
6.3
6.3
5.9
5.9
0.525
0.525
CHILE
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en energa
Generating potential
Potencial de generacin
Chile has great potential not only for producing

electricity in conventional hydroelectric
plants, but also for the development of
ARE sources. The increase in international
fuel costs and domestic electricity prices,
together with the maturing of different
technologies, mean favorable conditions for
the development of ARE projects. The ample
opportunities available include mini-hydro,
geothermal, biofuel and eolic initiatives, the
use of solar thermal energy to heat water
and, in the medium term, solar photovoltaic
and thermoelectric projects.
Chile no slo cuenta con un gran potencial

para generar electricidad en centrales
hidroelctricas convencionales, dispone
tambin de muchas posibilidades para el
desarrollo de ERNC. El alza de los costos
de los combustibles en los mercados
internacionales y de los precios internos
de electricidad, junto con la maduracin
tecnolgica de diversas tecnologas,
confluyen en un escenario favorable para los
proyectos ERNC. Las amplias oportunidades
disponibles incluyen iniciativas en mini
hidro, geotermia, biocombustibles, energa
elica, el uso de energa trmica solar para
calentamiento de agua y, en el mediano
plazo, proyectos de energa solar fotovoltaica
y solar termoelctrica.
Potential ARE Capacity (By source)

Potenciales de ERNC en MW (Por fuente)
Order of magnitude
Theoretical potential identified (MW)

Gross theoretical potential
associated to agricultural irrigation
infrastructure (1)
Hydro ARE
Tens of thousands of MW
1,400
Geothermal
16,000
Theoretical potential (2)
Eolic
30,000
2,800
1,600
Far north
Coquimbo Region
Atacama Region (3)
Biomass
Thousands of MW
Biogas
Thousands of MW
Solar
Hundreds of thousands of MW
470
5.5 million m3/solids
excluding bark
400
300,000
Sources: (1) Studies of potential of irrigation infrastructure 2007-2010, CNE/CNR/MINENERGIA.

(2) A. Lahsen, 1986 (Universidad de Chile).
(3) Modeling of solar and eolic resources in the north of Chile, DGF/CNE.
(4) Studies of Potential: Biogas, Forestry Biomass, Wood Waste, MINENERGIA.
(5) Study Irradiancia Solar en Territorios de la Repblica de Chile, CNE/PNUD/UTFSM.
Forestry industry waste

Wood industry (4)
(4)
Far north (5)
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Investment opportunities/Oportunidades de inversin

Recommended projects
Proyectos recomendados
On the basis of its projections for electricity

demand through to 2020, the National Energy
Commission (CNE) recommends dates for the
entry of new generation and transmission
projects located principally in central and
northern Chile. These recommendations take
into account the aim of energy diversification
as well as the countrys power needs.
Acorde a las proyecciones de la demanda

hacia el ao 2020, la Comisin Nacional de
Energa (CNE) recomienda un cronograma de
entrada en vigencia de obras de generacin y
transmisin concentrado en la zona centronorte. Su ejercicio de planificacin de los
sistemas elctricos considera los objetivos de
diversificacin energtica y las necesidades
de generacin del pas.
Projected energy demand in SIC, 2010-2020 (In GWh)

Proyeccin de consumo de energa SIC, 2010-2020 (Por GWh)
System
2010
2011
2012
2013
2014
2015
2016
2017 2018
We see enormous potential for

the development of geothermal
energy in Chile, given its
attractive geological conditions,
with some 360 volcanoes, and an
estimated generating potential of
between 3,000 and 16,000 MWe.
SIC Norte
4,793
5,380
5,816
6,582
7,523
8,390
9,207
9,778 10,450 11,168 11,939
SIC SUR
2,743
2,792
2,908
2,999
3,093
3,201
3,343
3,507 3,700
3,904
4,118
Vemos un enorme potencial

en el desarrollo de la energa
geotrmica en Chile, que se basa
en la atractiva configuracin
geolgica del pas ante la
presencia de unos 360 volcanes
y un estimado de potencial de
generacin que oscila entre 3.000
a 16.000 MWe.
SIC Austral
2,916
3,122
3,329
3,546
3,773
4,014
4,274
4,550 4,842
5,155
5,491
Peter Barnett
Managing Director.
Hot Rock Ltd.
SIC Centro
23,716 25,150
2019
2020
26,685 28,085 29,407 30,848 32,396 34,238 36,037 37,923 39,898
SIC Itahue
3,392
3,510
3,734
3,923
4,155
4,393
4,626
4,876 5,142
5,422
5,715
SIC Concepcin
3,026
3,573
3,861
4,037
4,159
4,302
4,504
4,729 4,997
5,279
5,575
Total
40,587 43,528
46,332 49,181 52,110 55,149 58,349 61,679 65,168 68,850 72,737
Projected energy demand in SIC, 2010-2020 ( In percentage)

Proyeccin de consumo de energa SIC, 2010-2020 ( Por porcentaje)
System
SIC Norte
2010
2011
10.9% 12.2%
2012
2015
2016
2017 2018
2019
2020
8.1% 13.2% 14.3% 11.5%
2013
2014
9.7%
6.2% 6.9%
6.9%
6.9%
SIC Centro
7.1%
6.0%
6.1%
5.2%
4.7%
4.9%
5.0%
5.7% 5.3%
5.2%
5.2%
SIC Itahue
-2.9%
3.5%
6.4%
5.3%
5.7%
5.7%
5.3%
5.4% 5.5%
5.4%
5.4%
SIC Concepcin
-5.4% 18.1%
8.1%
4.6%
3.0%
3.5%
4.7%
5.0% 5.7%
5.6%
5.6%
SIC SUR
-0.7%
1.8%
4.2%
3.1%
3.1%
3.5%
4.4%
4.9% 5.5%
5.5%
5.5%
SIC Austral
1.5%
7.1%
6.6%
6.5%
6.4%
6.4%
6.5%
6.4% 6.4%
6.5%
6.5%
Total
4.6%
7.2%
6.4%
6.1%
6.1%
5.8%
5.8%
5.7% 5.7%
5.7%
5.6%
CHILE
oportunidades
41
40
en energa
The CNEs recommendations envisage the

development of 59 generation projects in the
SIC and the SING between 2012 and 2022 which, in the case of the SIC, would total 6,310
MW - and 12 transmission projects between
2012 and 2017 for a total of 9,820 MVA.
Los proyectos recomendados por la CNE

incorporan 59 obras de generacin en el SIC
y el SING entre 2012 y 2022 -que, en el caso
del SIC, totalizaran 6.310 MW de potencia en
el sistema central- y 12 obras de transmisin
entre 2012 y 2017, por un total de 9.820 MVA.
Recommended Generation Projects in SIC, 2012-2017 (By start-up date)

Instalaciones recomendadas de generacin SIC, 2012-2017 (Por mes de inicio)
Start-up date
Month
Year
Sep
2012
Dec
2012
Jan
2013
Apr
2013
Apr
2013
Jul
2013
Sep
2013
Mar
2014
Apr
2014
Jul
2014
Jul
2014
Apr
2015
Jan
2016
Jan
2016
Jan
2016
Mar
2016
Mar
2016
Jul
2016
Apr
2017
Dec
2017
Dec
2017
Jul
2018
Jul
2018
Jul
2018
Aug
2018
Sep
2018
Oct
2018
Oct
2018
Dec
2018
Mar
2019
Aug
2019
Oct
2019
Oct
2019
Nov
2019
Dec
2019
Aug
2020
Oct
2020
Sep
2021
Oct
2021
Nov
2021
Dec
2021
Project
Wind farm, Region IV 01
Hydroelectric plant, Region VI 01
Forestry waste plant, Region VIII 01
Hydroelectric plant, Region III 01
Wind farm, Concepcin 01
Forestry waste plant, Region VII 01
Hydroelectric plant, Region VII 01
Hydroelectric plant, Region VIII 01
Hydroelectric plant, Santiago Region 01
Geothermal plant, Calabozo 01
Geothermal plant, Chilln 01
Forestry waste plant, Region VIII 02
Hydroelectric plant, Santiago Region 02
Coal plant, Region VIII 01
Quintero CC FA LNG
Quintero CC LNG
Geothermal plant, Potrerillos 01
Coal plant, Maitencillo 01
Coal plant, Pan de Azcar 04
Module 01
Coal plant, Maitencillo 02
Geothermal plant, Potrerillos 02
Module 02
Capacity MW
50
40
8
4.3
50
10
30
20
136
20
50
20
256
50
40
40
9
275
343
50
40
35
350
50
50
15
40
10
50
50
342
20
40
135
50
660
50
342
20
40
500
Recommended Generation Projects in SING, 2013-2022 (By start-up date)

Instalaciones recomendadas de generacin SING, 2013-2022 (Por mes de inicio)
Start-up date
Sep
May
Jan
Mar
Oct
Aug
Jan
May
Nov
Jan
Jan
Jul
Sep
Jan
Jan
Mar
Apr
Jan
2013
2016
2017
2017
2017
2018
2019
2019
2019
2020
2020
2020
2020
2021
2021
2021
2021
2022
Net
Capacity
MW
Project
Wind farm, SING I

Geothermal plant, Polloquere 01
Wind farm, SING II
Tarapac I
Tarapac II
Mejillones I
Geothermal plant, Pampa Lirima 01
Mejillones II
Geothermal plant, Puchuldiza 01
Mejillones III
Geothermal plant, Apacheta 01
Wind farm, SING III
Mejillones IV
Geothermal plant, Irruputunco
Geothermal plant, Puchuldiza 02
Wind farm, SING IV
Tarapac III
Geothermal plant, Apacheta 02
100
40
40
200
200
200
40
200
40
200
40
50
200
40
40
50
200
40
Unit
investment
cost
(US$/kW)
Type
SING
connection
Eolic
Geothermal
Eolic
Coal
Coal
Coal
Geothermal
Coal
Geothermal
Coal
Geothermal
Eolic
Coal
Geothermal
Geothermal
Eolic
Coal
Geothermal
Lagunas 220
Chapiquia 066
Crucero 220
Tarapac 220
Tarapac 220
Chacaya 220
Cerro Colorado 110
Chacaya 220
Cerro Colorado 110
Chacaya 220
Calama 110
Laberinto 220
Chacaya 220
Collahuasi 220
Cerro Colorado 110
Laberinto 220
Tarapac 220
Calama 110
2,300
3,550
2,300
2,350
2,350
2,350
3,550
2,350
3,550
2,350
3,550
2,300
2,350
3,550
3,550
2,300
2,350
3,550
Recommended Generation Projects in SIC, 2012-2017 (By start-up date)

Instalaciones recomendadas de generacin SIC, 2012-2017 (Por mes de inicio)
Start-up date
Month
Year
Sep
2012
Jul
2014
Aug
2015
Jul
2016
Jul
2016
Jul
2016
Jul
2016
Jul
2016
Jan
2016
Apr
2016
Jan
2017
Jan
2017
Project
Capacity MWA
Ancoa-Colbn Line (220 kV)

Lo Aguirre Sectioning Substation: stage 1
Lo Aguirre-Cerro Navia Line (2x220 kV): capacity increase
Diego de Almagro-Cardones Line (2x220 kV): first circuit
Cardones-Maitencillo Line (2x500 kV)
Maitencillo-Pan de Azcar Line (2x500 kV)
Pan de Azcar-Polpaico Line (2x500 kV)
Charra-Ancoa Line (2x500 kV): first circuit
Ancoa-Itahue Line (1x220 kV)
Lo Aguirre Sectioning Substation: stage 2
Cautn-Ciruelos Line (2x220 kV II)
Ciruelos-Pichirropulli Line (2x220 kV)
910
1,800
290
1,500
1,500
1,500
1,300
400
330
290
CHILE
oportunidades
43
42
en energa
Eolic agenda: joint efforts
Agenda elica: trabajo conjunto
At the end of 2010, as part of its efforts to

contribute to meeting emissions reduction
targets, the Energy Ministry signed a
Framework Collaboration Agreement with
the Ministry for Fiscal Properties to promote
opportunities in wind energy. Under this
Agreement, a survey was carried out to
identify fiscal properties suitable for projects
of this type and those with high potential
were earmarked for the purpose.
A fines de 2010, y como parte de sus esfuerzos

para contribuir a las metas de reduccin
de emisiones contaminantes, el Ministerio
de Energa suscribi un Convenio Marco de
Colaboracin con el Ministerio de Bienes
Nacionales para la promocin de oportunidades
en energa elica. Como parte del acuerdo, se
realiz un catastro para identificar terrenos
fiscales aptos para este tipo de proyectos,
reservndose especialmente para la generacin
energtica por su alto potencial.
The two Ministries went on to launch a public

tender for the installation of wind farms on
two of these properties. The first stage of
this tender was completed in July 2011 and
another similar tender is scheduled for the
second half of the year.
Como resultado, ambas carteras convocaron

a una licitacin pblica de dos terrenos para
emplazar dos subestaciones elicas. La primera
etapa de este proceso finaliz en julio de 2011,
y otra licitacin similar estaba programada para
el segundo semestre del ao.
Geothermal agenda: national priority

Agenda geotrmica: prioridad nacional
Given Chiles natural characteristics,

geothermal energy is a particularly important
ARE source with high potential. Its great
advantages are its immunity to climatic
variations, a high load factor (95%) and a
marginal cost that is close to zero.
A very low level of CO2 emissions per MWh
also makes it one of the worlds cleanest
sources of electricity. Indeed, as compared
to an equivalent amount of electricity
generated from fossil fuels, it represents a
95% reduction in emissions of greenhouse
gases. Moreover, the fluid extracted does not
produce residues because it is injected back
into the earth.
Chile offers excellent prospects for the
development of this source. In addition,
according to estimates by the California
Energy Commission, the installation of 500
MW of geothermal generating capacity
means on average some 2,000 new jobs
during the construction phase and, during the
Consideradas las caractersticas naturales de

Chile, la geotermia es una de la ERNC con ms
alto potencial en el pas. Sus grandes ventajas
estn en que no es susceptible a las variaciones
climticas, posee un alto factor de planta (95%),
y su costo marginal es cercano a cero.
Asimismo, sus bajas emisiones de CO2 por
MW/hora generada la convierten en una de las
fuentes de electricidad menos contaminantes
del mundo. En efecto, por cada watt-hora de
energa fsil que se reemplace por un watthora de energa geotrmica, se reduce en un
95% la contribucin al efecto invernadero. El
fluido extrado tampoco produce residuos, ya
que es re inyectado dentro de la tierra.
Chile posee muy buenas perspectivas para
el amplio desarrollo de esta fuente. Segn
estimaciones de la Comisin de Energa de
California, por cada 500 MW instalados de
energa geotrmica, se producen en promedio
2 mil empleos en la etapa de construccin,
operational stage, creates 900 direct jobs as

well as around 1,200 indirectly.
adems de 900 empleos directos y cerca de

1.200 empleos indirectos en etapa de operacin.
Geothermal potential
Potencial geotrmico
Chile is located in the so-called Pacific Rim

of Fire and over 300 points of significant
volcanic activity have been identified in the
area of the Andes Mountains. According to
theoretical estimates, its gross geothermal
generating capacity reaches 16,000 MW.
At present, no geothermal plants are in
operation but a number of companies are
developing projects and the aim is to start
production in 2014.
Chile se ubica en el llamado Cordn de Fuego

del Pacfico y ms de 300 puntos de actividad
volcnica han sido localizados en reas cercanas
a la Cordillera de los Andes. De acuerdo con
estimaciones tericas, su capacidad geotrmica
bruta alcanzara los 16.000 MW. En la actualidad
no existen plantas geotermales operando,
sin embargo ya son varias las compaas que
avanzan en proyectos de este tipo. La meta es
comenzar la generacin en 2014.
Geothermal Potential (In MW)

Potenciales geotrmicos (En MW)
Gross potential
Estimated technical-economic potential
Installed capacity for direct use
16,000 MW
1,235-3,350 MW
8.7 MW
Source: Non-Conventional Renewable Division of the Ministry of Energy (www.minenergia.cl).
Application procedures
Trmites necesarios
There are, at present, two ways in which

a geothermal energy concession may
be obtained, either for exploration or
exploitation:
Actualmente existen dos vas para obtener una

concesin de energa geotrmica, sea para un
proyecto de exploracin como de explotacin:
1- Direct award
Applications should be presented to the Energy Ministry and must comply, both in their substance and the
form of their presentation, with the requirements set out in the law on Geothermal Energy Concessions.
1- Procedimiento de otorgamiento directo

Se inicia mediante la presentacin de una solicitud de proyecto ante el Ministerio de Energa, que debe cumplir
con los requisitos formales y de fondo detallados en la ley sobre Concesiones de Energa Geotrmica.
2-Tender
A tender must be called by the Energy Ministry in the case of overlaps between direct applications or between
a direct application and any of the so-called Probable Sources of Geothermal Energy. The Ministry may also
call tenders in other cases.
2- Procedimiento de licitacin
Debe ser convocado por el Ministerio de Energa cuando existe superposicin entre solicitudes directas o entre
una de stas y alguna de las denominadas Fuentes Probables de Energa Geotrmica. Tambin el procedimiento
de licitacin puede ser convocado de oficio por la autoridad Ministerial.
CHILE
oportunidades
45
44
en energa
Once a concession has been awarded

through either of these two processes, the
respective decree is drawn up and, subject to
authorization from the Comptroller Generals
Office, comes into force once it has been
published.
Una vez decidido el otorgamiento y/o

adjudicacin, se confecciona el respectivo
decreto, sujeto al control preventivo de
legalidad a travs del trmite de Toma de Razn
efectuado por la Contralora General de la
Repblica. Tras la publicacin del decreto, entra
en vigencia la concesin.
Financial incentives
Incentivos financieros
Chiles Economic Development Agency

(CORFO) has implemented a number of
programs designed specifically to encourage
investment in renewable energies as set out
in the table below:
La Corporacin de Fomento de la Produccin

(CORFO) ha implementado a la fecha diversos
instrumentos especialmente diseados para
incentivar la inversin en energas renovables.
Estos incentivos se clasifican como:
Concessions and applications

Balance de solicitudes y concesiones
In the case of direct applications, decrees

for 16 exploration areas are currently being
drawn up, representing an investment of
almost US$15 million. In total, they comprise
over 500,000 hectares and will come into
force during 2011, following their approval in
2010.
Para el ao 2011, se espera que 56 concesiones

de exploracin y 7 de explotacin estn
vigentes en esta rea. Estas se sumarn a las
16 reas que fueron adjudicadas en el ao
2009, totalizando una superficie de 630.800
hectreas que significan un compromiso de
inversin en exploracin en torno a los US$85
millones. Con este balance, las concesiones
otorgadas en Chile a la fecha son 83.
En cuanto a las solicitudes directas, ya estn en
elaboracin los decretos que otorgarn 16 zonas
de exploracin, cuya inversin comprometida
llega casi a los US$15 millones. Todas suman
en conjunto ms de 500 mil hectreas e irn
entrando en vigencia durante el ao 2011, tras
su aprobacin en 2010.
Subsidies and direct support

Since 2004, different lines of action, involving
a number of government agencies, have been
implemented to foster the development of
ARE projects. Focusing on high-potential
sectors, they include instruments to promote
private investment accompanied by the
provision of information to facilitate and
guide investment decisions.
In 2008, the Program of Support for ARE
Development was launched to complement
government efforts to eliminate barriers that
limit the sectors development.
Financial Incentives for Investment in ARE

Incentivos financieros a la inversin en ERNC
Subsidios e instrumentos de apoyo directo

Desde el ao 2004 se estn implementando
diversas lneas de accin, que involucran a
distintas agencias del gobierno, para fomentar
el desarrollo de proyectos de ERNC. Focalizadas
en sectores con gran potencial, stas incluyen
instrumentos para promover la inversin
privada as como la entrega de informacin
para facilitar y guiar las decisiones de inversin.
El ao 2008 se cre el Programa de Apoyo al
Desarrollo de ERNC, que complementa los
esfuerzos gubernamentales en la eliminacin
de las barreras que limitan el desarrollo de este
sector.
Pre-investment phase / Fase Preinversin
It is estimated that, in 2011, 56 geothermal

exploration
concessions
and
seven
exploitation concessions will come into
force. This follows the concessions for 16
areas that were awarded in 2009, totaling
some 630,800 hectares and representing an
estimated investment of US$85 million in
exploration. This would take the total number
of concessions awarded to 83.
Incentive / Incentivos
Financial support / Ayuda Financiera
Pre-investment studies through

intermediate operator in the
Santiago Region
Up to 50% of the cost of the

studies and 2% of the estimated
investment.
Estudios de preinversin mediante

operador intermediario en la Regin
Metropolitana.
Aporte de hasta el 50% del costo de

los estudios y un 2% de la inversin
estimada.
TodoChile
Program:
preinvestment studies in rest of the
country

studies and 2% of the estimated
investment. Projects must
commit investment of more
than US$400,000. In particular,
eolic prospection studies are
entitled to a maximum subsidy
of US$20,000 for monitoring and
US$30,000 for monitoring at
two points.
Programa TodoChile, estudios de

preinversin en el resto del pas.
Upper limit / Tope

33 million pesos for each project
evaluated.
$33 millones
proyecto
de
pesos
por
US$60,000 for each project

evaluated.
US$60 mil por proyecto evaluado.
Beneficio que llega al 50% del

costo de los estudios y un 2% de la
inversin estimada. Los proyectos
deben comprometer inversiones
superiores a los US$400 mil.
Particularmente los estudios de
prospecciones elicas tienen un
subsidio mximo de US$20 mil
para monitoreo y US$30 mil para
monitoreos en dos puntos.
Subsidy for advanced-stage

studies (engineering, electrical
connection,
environmental
impact, etc.)
Subsidio para estudios en etapa
avanzada (ingeniera, conexin
elctrica, impacto ambiental, etc.).

studies. The proponent must
present evidence of access
to the energy source or the
property, its quantification and
technical and economic prefeasibility.
Financia hasta el 50% del costo de
los estudios. El proponente debe
presentar evidencia que acredite
el acceso al recurso energtico
o la propiedad, su cuantificacin
y la prefactibilidad tcnica y
econmica.
Source: Foreign Investment Committee based on information from CORFO (www.corfo.cl).
5% of the estimated investment

with a limit of US$160,000 for
each project evaluated. In the
case of hydroelectric projects,
these must not exceed a
capacity of 20 MW.
Hasta el 5% de la inversin
estimada y sin sobrepasar los
US$160 mil de cofinanciamiento
por proyecto evaluado. Para el
caso de proyectos hidroelctricos,
no deben superar los 20 MW de
potencia.
CHILE
oportunidades
47
46
en energa
At the end of 2010, the Energy Ministry

launched three programs of direct support
for investment in ARE projects. Consisting
principally in insurance coverage and
subsidies, they seek to reinforce promotion of
eolic, solar and geothermal initiatives.
A fines del 2010, el Ministerio de Energa hizo

pblicos tres programas de apoyo directo al
inversionista en ERNC. Los instrumentos, que
consisten fundamentalmente en seguros
y subsidios, buscan reforzar las iniciativas
elicas, solares y geotrmicas.
For geothermal projects in particular, a

mechanism has been designed under which
the State shares the risk of failure in laterstage exploration in a bid to facilitate
prospection and reduce the time involved.
This mechanism will apply to the concessions
awarded, encouraging their advance to the
final stage of exploration through contingent
partial-cover insurance for investment in
wells. This would be activated if the deposit is
shown not to have the conditions anticipated
by the concession holder.
En geotermia, particularmente, se ha
diseado un mecanismo en el que el Estado
comparte solidariamente el riesgo de falla en
las etapas finales de la exploracin, a objeto
de facilitar y reducir los plazos de la etapa
de exploracin. Este mecanismo operar
para concesiones otorgadas, incentivando el
avance hasta la etapa final de la exploracin
geotrmica mediante un seguro contingente
de cobertura parcial de la inversin en pozos,
el que se otorgar en caso de que el reservorio
no tenga las condiciones esperadas por los
concesionarios.
Subsidy for 500 kW Photovoltaic Farm

Subsidio para Granja Fotovoltaica de 500 kW
Description / Descripcin: State subsidy for the installation of a solar electricity generating plant, using
photovoltaic technology, connected to the isolated electricity system of the town of San Pedro de Atacama.
The commercial model envisages the sale of the energy produced to the areas Cooperativa Elctrica
(Electric Cooperative) at a fixed price under a 20-year contract.
Subsidio estatal para la instalacin de una planta solar de generacin elctrica, con tecnologa fotovoltaica,
conectada al sistema aislado de San Pedro de Atacama. El modelo comercial contempla la venta a precio fijo
de la energa producida a la Cooperativa Elctrica de la zona bajo contrato de 20 aos.
Proponent / Iniciativa: Public. / Pblica.
Project coordinator / Coordinador(es) del proyecto: Energy Ministry. / Ministerio de Energa.
Location / Ubicacin: Municipal district of San Pedro de Atacama, Antofagasta Region. / Comuna de San
Pedro de Atacama, regin de Antofagasta.
Area / Superficie: 7 hectares considering the existing installations. / 7 hectreas considerando las actuales
instalaciones.
Amount of fund / Monto del fondo: US$1 million (maximum). / US$ 1 milln (mximo).
Starting date / Fecha de inicio: Bids will be invited during 2011 and the project will be implemented in 2012.
El llamado a concurso se realizar durante el ao 2011. La implementacin de proyectos ser durante el
ao 2012.
Duration / Duracin: 20 years. / 20 aos.
Incentive mechanism / Modalidad del incentivo: International bid for subsidy against construction and
output targets with right to property that compensates for non-profitable fixed tariff for sale of the energy
in the area of the projects location.
Concurso internacional a subsidio contra construccin y metas de produccin con derecho a propiedad que
compensa tarifa fija no rentable de venta de energa en la zona de ubicacin del proyecto.
Contact / Contacto: Miguel Prez de Arce, mperezdearce@minenergia.cl, tel: +56-02-3656876.
Bid for Implementation of Pilot ARE Projects /

Concurso para la implementacin de proyectos pilotos ERNC
Description / Descripcin: Program of state subsidies for the implementation of initiatives in any of the
following four areas: cogeneration using biomass (with an associative supply model or management of
native wood in a forestry reserve); hydroelectric production associated to irrigation infrastructure; eolic
energy; solar photovoltaic energy.
Programa de subsidios estatales para la implementacin de iniciativas que se enmarquen en alguna
de las siguientes cuatro lneas de produccin: cogeneracin de biomasa (con un modelo asociativo de
abastecimiento o manejo de bosque nativo de una reserva forestal); hidroelectricidad asociada a obra de
riego; energa elica; solar fotovoltaica.
Location / Ubicacin: The projects selected through the bid will be located in different regions of Chile.
Los proyectos que resulten ganadores del concurso se ubicaran en diferentes regiones de Chile.
Area / Superficie: The area used will depend on the nature of each project.
Las superficies utilizadas dependern de la naturaleza de cada proyecto ganador.
Amount of fund / Monto del fondo: US$10 million. / US$10 millones.
Starting date / Fecha de inicio: Bids will be invited during 2011 and projects are expected to be implemented during 2012.
El llamado a concurso ser durante el ao 2011 y se espera implementar los proyectos durante el 2012.
Incentive mechanism / Modalidad del incentivo: Presentation of projects in a public bid for the funds
which will be awarded according to the following criteria: maximization of MWhs per US$ of subsidy
requested; generation of social impacts and incorporation of activities to transfer knowledge of the
technology; progress in obtaining permits (particularly for connection); experience in at least one project
with similar characteristics that is already in commercial operation; incorporation of new players without
projects in operation in the electricity market.
Postulacin de proyectos a concurso pblico para adjudicacin de fondos segn los siguientes criterios:
maximizacin de MWh por cada US$ requerido de subsidio; generacin de impactos sociales e incorporacin
de actividades de trasferencia de conocimiento de la tecnologa; avance en proceso de tramitacin
(particularmente conexin); experiencia en al menos un proyecto de similares caractersticas ya operando
comercialmente; valorizar la participacin de nuevos actores, sin proyectos en operacin, dentro del
mercado elctrico.
Insurance for high-depth geothermal exploration

Seguro a la exploracin geotrmica profunda
Description / Descripcin: Provision of insurance to allow the investor to share the risk of high-depth
geothermal exploration projects that involve drilling up to three vertical wells.
Otorgamiento de un seguro que le permita al inversionista compartir el riesgo en los proyectos de exploracin
profunda de recursos geotrmicos que consideren perforacin de hasta tres pozos verticales.
Location /Ubicacin:: Areas of Chile with geothermal exploration concessions currently in force.
Zonas del territorio nacional con concesiones de exploracin geotrmica en vigencia.
Area / Superficie: This will depend on the geographic location and particular characteristics of each project
and will be defined by a parallelogram stipulated in Law N 19.657.
La superficie depender de la ubicacin geogrfica y las caractersticas particulares de cada proyecto de
exploracin geotrmica y estar definida por un paralelogramo estipulado en la ley 19.657.
Amount of fund / Monto del fondo: US$47.3 million. / US$ 47,3 millones.
Starting date / Fecha de inicio: As from 2012. / Desde el ao 2020.
Duration / Duracin: Through to 2020. / Hasta el ao 2020.
Incentive mechanism / Modalidad del incentivo: Insurance against risk. / Seguro de riesgo.

CHILE
oportunidades
49
48
en energa
Foreign Direct Investment in Energy

Inversin Extranjera Directa en Energa
Between 1974 and 2010, foreign direct
investment (FDI) worth US$13,616 million
was materialized in Chiles energy industry
under the DL 600 Foreign Investment Statute.
This represented 17.6% of the total inflow
through DL 600 during the period even though
FDI in the industry began only in 1992.
We are eager to be able to make

new investments in Chile, either
through the expansion of our
existing assets or by participating in
other sectors of the economy.
La inversin extranjera en Energa, materializada

en Chile a travs del D.L.600 entre los aos 1974
y 2010, es de US$13.616 millones de dlares, lo
que representa un 17,6% de la inversin total
recibida a travs de este mecanismo de ingreso
de capitales en el perodo. Cabe destacar que la
inversin extranjera en este sector comenz a
materializarse a partir de 1992.
FDI in Energy
(US$ million, nominal)
IED En Energa
(Millones de US$ nominales)
4,500
Estamos deseosos de poder

concretar nuevas inversiones en
Chile, sea mediante la expansin
de los activos que actualmente
tenemos en el pas como
participando en nuevos sectores
econmicos.
Jeffrey Blinder
Senior Managing Partner.
Brookfield Asset Management Inc.
3,971
4,000
3,500
3,000
2,500
2,193
2,000
1,395
1,500
1,361
1,141
858
1,000
481
387
500
861
223
3
16
19
54
1994
1995
337
114
33
105
64
0
1992 1993
1996
1997
1998
1999
2000
Source: Foreign Investment Committee (www.foreigninvestment.cl).
2001 2002
2003
2004
2005
2006
2007
2008
2009
2010
CHILE
oportunidades
51
50
en energa
FDI in the sector peaked in 1999 when

Spains Endesa acquired the Enersis energy
conglomerate for US$3,200 million. In
2000 and 2001, this was followed by other
important mergers and acquisitions including
the acquisition of the Gener power producer
by US-based AES while, in 2004, Endesa
brought in more capital after its restructuring
of Elesur.
In 2006, the main investments were the
purchase of Transelec by Canadas Brookfield
for US$1,123 million while, in 2008, PSEG
sold its stake in Inversiones Elctricas del
Sur (SAESA group) to Ontario Teachers and
Morgan Stanley Infrastructure. In 2009, the
largest investment in the sector corresponded
to the joint venture formed by Australias
Pacific Hydro and Norways SN Power for the
construction of two renewable-energy runof-the-river hydroelectric plants. These two
companies also made further investments in
2010.
El peak ms importante en la inversin en el

rea se registr en 1999, con la adquisicin
de Enersis por parte de la espaola Endesa
en US$ 3.200 millones. Entre 2000 y 2001
otras grandes operaciones de fusiones y
adquisiciones incluyeron la compra de la
planta generadora de electricidad Gener, por
parte de la estadounidense AES. En tanto,
en 2004 Endesa ingres nuevos aportes de
capital tras la reestructuracin de Elesur.
Las operaciones que marcaron las inversiones
de 2006 corresponden principalmente a
la adquisicin de Transelec por parte de
la canadiense Brookfield, en US$1.123
millones. En 2008, por su parte, PSEG vendi
su participacin en Inversiones Elctricas
del Sur (Grupo SAESA) a Ontario Teachers y
Morgan Stanley Infrastructure. En 2009, los
mayores aportes a este sector corresponden
a la australiana Pacific Hydro y la noruega SN
Power, a travs de un joint venture para la
construccin de dos centrales de pasada de
energa renovable, compaas que tambin
ingresaron capital durante 2010.
Spain has been the main source of FDI in

energy in Chile, accounting for over half of
the inflow through DL 600 between 1974 and
2010. It was followed by the United States
(20.4%) and Canada (16.1%).
El principal pas inversionista en este sector

es Espaa, con ms de la mitad de la inversin
ingresada a travs del D.L.600 en el perodo
1974-2010. Le siguen Estados Unidos, con un
20,4% del total, y Canad con un 16,1%.
FDI in Energy
Gross Inflow by Region of Chile, 1974-2010
IED Energa
Ingresos Brutos segn Regin de Chile, 1974-2010
Biobo
1.5%
Antofagasta
2.7%
Others
0.1%
Santiago
4.0%
OHiggins
4.4%
Valparaso
4.5%
Multi-region
82.7%
FDI in Energy
Gross Inflow by Country of Origin, 1974-2010
IED en Energa
Ingresos Brutos segn Pas de Origen, 1974-2010
Australia
4.4%
Belgium
5.2%
Norway
1.1%
France
0.5%
As regards its geographic distribution within

Chile, 82.7% of FDI in the energy sector
corresponded to multi-region projects. This
is explained by the nature of projects, which
generally extend over a number of different
regions.
Others
1.0%
Canada
16.1%
Spain
51.4%
United States
20.4%
Un 82,7% de las inversiones ingresadas

en el perodo corresponden a proyectos
multirregionales, lo que se explica por
las caractersticas propias del sector, que
implican el desarrollo de iniciativas que
abarcan ms de una regin del pas.
The information contained in this document is for the purposes of information only and the particular conditions of
each specific potential project may vary from those set out here. The contents of this document should in no way
be interpreted as a legally binding obligation of the Republic of Chile or any other state agency that participates in
any way in the processes of administrative approval or of any other nature corresponding under Chilean law. This
information in no way constitutes an authorization to start or exercise the economic activity potentially intended
to be developed. The resulting agreements will be governed and interpreted exclusively according to the laws of the
Republic of Chile, their related regulation and the national policies applicable to each particular case.
La informacin contenida en este documento est destinada exclusivamente a fines informativos y las condiciones
particulares de cada caso especfico pueden variar respecto de las aqu descritas. El contenido de este documento
no debe interpretarse de ninguna manera como una obligacin jurdica vinculante para la Repblica de Chile o para
cualquier otra agencia estatal que participe de alguna manera en los procesos de licitacin establecidos. Los acuerdos
resultantes sern regidos e interpretados exclusivamente segn las leyes de la Repblica de Chile.
We would like to thank the following institutions for providing information and pictures for this book:
Quisiramos agradecer a las siguientes instituciones por entregarnos valiosa informacin para esta publicacin:
Energy Ministry
Ministerio de Energa
National Energy Commission
Comisin Nacional de Energa (CNE)
Non-Conventional Renewable Division
Divisin de Energas Renovables No Convencionales
Forecasting and Energy Policy Division
Divisin de Prospectiva y Poltica Energtica
National Energy Efficiency Program (PPEE)
Programa Pas de Eficiencia Energtica (PPEE)
The content of this photographic material is the property of Fundacin Imagen de Chile. It cannot be copied,
reproduced, distributed or edited, either totally or partially, without the express authorization of its owner. Any breach
of these terms will be subject to the sanctions established in Law N 17.736 and its modifications.
El contenido de este material fotogrfico es de propiedad de la Fundacin Imagen de Chile. Se prohbe la copia,
reproduccin, distribucin o edicin total o parcial del mismo sin la autorizacin expresa de su titular. Cualquier copia,
reproduccin, distribucin o edicin no autorizada, ser sancionada de conformidad a lo dispuesto en la ley N 17.736
y sus modificaciones.
The content of this photographic material is the property of Codelco, CONAF, CORFO, the photographers Max Donoso,
Guy Wenborne, Juan Francisco Somalo and Francisco Aguayo, Chilephoto, Expo Shanghai and Revista Placeres and has
been ceded to Fundacin Imagen de Chile for its publication. It cannot be copied, reproduced, distributed or edited,
either totally or partially, without the express authorization of Fundacin Imagen de Chile. Any breach of these terms
will be subject to the sanctions established in Law N 17.736 and its modifications.
El contenido de este material fotogrfico es de propiedad de Codelco, Conaf, Corfo, los fotgrafos Max Donoso, Guy
Wenborne, Juan Francisco Somalo, Francisco Aguayo, Chilephoto, Expo Shanghai y Revista Placeres, el que ha sido
cedido a la Fundacin Imagen de Chile para su difusin. Se prohbe la copia, reproduccin, distribucin o edicin
total o parcial del mismo sin la autorizacin expresa de su titular de la Fundacin Imagen de Chile. Cualquier copia,
reproduccin, distribucin o edicin no autorizada, ser sancionada de conformidad a lo dispuesto en la ley N17.736
y sus modificaciones.
Sustainable Development Division

Divisin de Desarrollo Sustentable
Chilean Economic Development Agency (CORFO)
Corporacin de Fomento de la Produccin (CORFO)
Renewable Energy Center (CER)
Centro de Energas Renovables
General Directorate for International Economic Relations (DIRECON)
Direccin General de Relaciones Econmicas Internacionales (DIRECON)
Ministry of National Properties
Ministerio de Bienes Nacionales
opportunities
in energy
Ahumada 11, 12th Floor,

Santiago - Chile
Tel: (56 - 2) 698 4254
Fax: (56 - 2) 698 9476
www.foreigninvestment.cl
CHILE

Chile Oportunities in Energy

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opportunities

Ahumada 11, 12th Floor,

FOREIGN INVESTMENT COMMITTEE

COMIT DE INVERSIONES EXTRANJERAS

FOREIGN INVESTMENT COMMITTEE

Chiles electricity system / El sistema elctrico de Chile

CHILE, OPPORTUNITIES IN ENERGY

CHILE, OPORTUNIDADES EN ENERGA

Institutional structure: regulation and the environment

Alternative Renewable Energy (ARE) / Energas Renovables no Convencionales (ERNC)

Investment opportunities/Oportunidades de inversin

Foreign Direct Investment in energy / Inversin Extranjera Directa en Energa

Mainland length / Longitud continental

: The President of the Republic serves as

AYSN DEL GENERAL

16.9 million / millones

US$203,925 million / millones

GDP / PIB 2010

Chiles electricity system / El sistema elctrico de Chile

La decision de Hot Rock Limited de invertir

Para lograr estos objetivos, ser crucial para Chile

Primary Energy Supply and GDP, 1999-2009

The decision of Hot Rock Ltd. to invest in Chiles

Durante las ltimas cuatro dcadas, Chile ha duplicado

Source: Energy Ministry (www.minenergia.cl).

The transport sector is by far Chiles largest

El principal sector en el consumo de energa en

Final Energy Consumption, 2009

Over 70% of Chiles primary energy

Ms del 70% del consumo primario de energa

Primary Energy Supply, 2009

Wood & others

Source: Energy Ministry (www.minenergia.cl).

Final Energy Consumption, 1990-2009

Source: Energy Ministry (www.minenergia.cl).

Comparison with industrialized countries

Manufacturng & Mining

Una comparacin con los pases desarrollados

TPES/GDP (TEP/US$2 million PPP)

Chile currently has an installed electricity

Actualmente, la capacidad instalada elctrica

Electricity is supplied through four systems:

La electricidad es distribuida a travs de cuatro

Based on GDP growth projections for Chile

Sobre la base de las proyecciones de

Source: Energy Ministry (www.minenergia.cl).

Manufacturing & mining

Central Interconnected Grid (SIC).

Northern Interconnected Grid (SING).

Aysn System. This grid, with a capacity

Magallanes System. Also in the far south,

El Sistema Interconectado Central

El Sistema Interconectado del Norte

El Sistema de Aysn. Esta red, con una

El Sistema de Magallanes. Tambin

Power generation technologies

In the mid-1990s, hydroelectricity accounted

A mediados de los aos 90, la capacidad instalada

1) Mainly dual plants which can operate with gas or diesel.

1) Mayoritariamente plantas duales, que pueden operar con gas

SIC + SING Installed Capacity, 1996-2010

Source: Energy Ministry (www.minenergia.cl).

SING: Installed Capacity, 2010

Net power per source (MW)