Electric Power Equipment

An Expert's View about Energy in Chile

Posted on: 12 Jul 2012

Chile has specific legislation (Law 20257) that makes mandatory the use of non-traditional renewable energy sources (wind, geothermal, solar, biomass, bio-fuels, and mini-hydro).

Electric Power Equipment A Top Export Prospect for Chile June 2012 Overview 2012 2013 In USD millions 2010 2011 (estimated) (estimated) Total Market Size 890 1,069 1,248 1,528 Total Local Production 85 100 120 150 Total Exports 73 71 72 72 Total Imports 878 1040 1200 1450 Imports from the U.S. 132 164 180 225 Exchange Rate: 1 USD 500 484 486 489 Total Market Size = (Total Local Production + Total Imports) – (Total Exports) Data Sources: Total Local Production: Chilean Customs Export/Import data: Chilean Customs In 2012, the demand for electricity in Chile is expected to grow by 6 - 7%. This is in line with the average annual demand growth over the last twenty years of 6.7 %. Chile is facing a complex scenario with a lack of indigenous energy sources combined with a need for additional investment in generation and most critically in transmission. The Chilean economy is expanding and the government expects the country will need an additional 10,000MW of installed capacity by 2020 to meet rising demand. Power generation projects totaling USD 16.8 billion in investment are expected during the period 2010-2015. The energy crisis in 2011 was managed with “covert rationing,” where The Electric Energy Dispatch Center (CEDEC) told large customers to accept a 5% decrease in the voltage. Renewable energy will remain a single digit percentage, under 3%, of Chile’s total energy matrix for the foreseeable future. Projects in hydropower, biomass, biogas, wind, and solar energy are receiving increased government support and garnering private-sector attention. Chile has specific legislation (Law 20257) that makes mandatory the use of non-traditional renewable energy sources (wind, geothermal, solar, biomass, bio-fuels, and mini-hydro). A minimum of 5% of all the energy injected into the main two grids until 2014 and up to 10% by the year 2024 must come from renewable sources. Even more recently, the government has announced a target of 20% renewable by 2020. Top US spects ectr 2 Export Pro in Chile 2012: El ic Power Equipment Best Prospects/Services Generation • Hydro-generation plants from 20 MW to 500 MW • Thermal-generation plants in the range of 100 MW - 300 MW • Clean coal technology plants (The government recently announced the tightening of coal emissions) • Combined-cycle gas fired plants and support systems • Dual gas/diesel fired plants • Geothermal plants • Wind generation plants: >0.3 MW - 10 MW, horizontal, variable speed, pitch reg., >50 mt. mast turbine • Solar panels – utility scale as well as for water heating (The GOC launched a subsidy program for new low cost houses that includes this technology and induce saving in natural gas) Transmission • High efficiency transmission equipment and supplies, aimed to transfer electric energy • >1,000 miles • Environmental solution services • NOx, particle and CO2 abatement equipment • Scrubbers, fumes treatment technology and equipment. Distribution • Electric control instruments • High efficiency transformers • Signal conditioners Opportunities Export opportunities in the area of electric power equipment are a consequence of a surge in power generation and transmission investment that will require direct investment and supplies exceeding USD 25 billion between 2012 and 2015. Web Resources • Chilean Energy Commission: www.cne.cl • Central Interconnected Grid Management System: www.cdecsic.cl • Northern Interconnected Grid Management System: www.cdecsing.cl • Electric Industry Magazine: www.revistaei.cl Back to top Top US ects 3 Export Prosp in Chile 2012: Electric Power Equipment For More Information Please contact Marcelo Orellana, Commercial Specialist for electric power equipment at the U.S. Commercial Service in Chile at Marcelo.Orellana@trade.gov or (56) 2-330-3455. You can also visit our website at www.export.gov/chile. The U.S. Commercial Service — Your Global Business Partner With its network of offices across the United States and in more than 70 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting www.export.gov/eac. Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice. The Commercial Service reference to or inclusion of material by a non-U.S. Government entity in this document is for informational purposes only and does not constitute an endorsement by the Commercial Service of the entity, its materials, or its products or services International copyright, U.S. Department of Commerce, 2012. All rights reserved outside of the United States.
Posted: 12 July 2012

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