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Table 4.8 Production, importation and consumption of primary energy, 2013
(Teracalories)
Energy source Gross production Imports Exports Stock variation (Losses) Gross consumption
Wind 351 0 0 0 351
Wood & biomass 89,299 0 0 521 88,778
Solar 185 0 0 0 185
Biogas 72 0 0 0 72

In December 2013, Chile had an installed power generating capacity of around 17.7 GW, an increase of about 35% on the figures for 2009. In 2013, a total of 68,514 GWh was generated, of which 70.5% was provided by thermal power stations, 28.7% by hydroelectric plants and 0.8% by wind and solar sources. (...)

Chile, among the renewable energies, hydroelectric power generation is the most important in terms of volume and infrastructure, accounting for 33.88% of total generating capacity. As far as strictly non conventional [117] resources are concerned, in December 2013 the installed capacity accounted for 5.9% of the national total.

[117] In Chile, the main authority in the field (the Renewable Energy Centre) uses the term NCRE in a way that excludes large scale hydroelectric power stations, which are regarded as a source of conventional energy. The list of NCRE includes solar, wind, bioenergy (biomass and biogas), mini hydro and geothermal energy.

Wind and solar energy, although a minority of the energy matrix, have grown at a rapidly increasing pace in recent years. Between 2012 and 2014, seven installations were built (bringing the total to 11) and solar generating capacity rose from 9.8 MW in 2012 to 177 MW in the first half of 2014.

It is estimated that Chile has abundant potential wind, solar, biomass and tidal resources. Technological advances have been making NCRE (Non Conventional Renewable Energies) generation increasingly competitive. Where wind energy is concerned, between 2013 and 2014 nine new installations were built, including the El Arrayán wind farm, with the greatest generating capacity in the country. Generating capacity practically tripled, rising from 201 MW to 737 MW. [118] These figures are consistent with the Government's target of having 20% of the country's power generation coming from non conventional renewable energy sources (NCRE) by 2025. The total portfolio of NCRE projects (excluding hydroelectric projects of over 20 MW) adds up to about 17,000 MW.

[118] Document produced by the Ministry of Energy's Renewable Energy Centre "Proyectos NCRE en operación". Viewed at: http://cer.gob.cl/sobre las ernc/proyectos.

Law No. 20.257 of 20 March 2008 introduced changes in the LGSE (General Law on Electrical Services) with respect to power generation from non conventional renewable energy sources. [87] Law No. 20.698 of 14 October 2013 amended Law No. 20.257 of 2008, to establish that electricity companies that sell power from the grid must prove to the CDEC (Economic Load Dispatch Centre) that 20% of their annual sales come from non conventional renewable energy sources. As this target has been set for 2025, provisional percentages that increase progressively between 2014 and 2024 have also been defined. Moreover, the Law states that to ensure compliance with the NCRE (Non Conventional Renewable Energies) target, if it is anticipated that the NCRE (Non Conventional Renewable Energies) percentage will not be met, the Ministry of Energy will have to organize tender proceedings so that private operators can offer blocks of energy from new generating projects, under a special remuneration regime, with a price guaranteed within a band.

[87] More specifically, Law No. 20.257 of 2008 stipulates that as from 2010 electricity companies that sell power from the grid will have to prove to the CDEC that 5% of their annual sales comes from non conventional renewable energy sources; this percentage will increase annually up to 10% in 2024. Tax incentives are envisaged by way of compensation.

Law No. 20.698 of 14 October 2013, which amended the LGSE, stipulates that from 2025 companies that sell power from systems with an installed capacity of more than 200 MW will have to prove that an amount of energy equivalent to 20% of their sales in any calendar year has been injected into any of those systems by non conventional renewable means of generation (see above).

(…) The CCHEN (Chilean Nuclear Energy Commission) is the body that regulates, authorizes and supervises category 1 nuclear and radioactive sources and their operators.

In addition, the Ministry of Energy forges links with other relevant entities such as the recently established National Centre for Sustainable Energy Innovation and Development (CIFES), the successor of the Renewable Energy Centre (CER), which is responsible for the design and implementation of programmes and projects for promoting the production and use of sustainable energies. (...)

The energy sector has gone through a difficult period during recent years. The stagnation of investment projects since 2013 has been compounded by weather factors, such as the repeated droughts which have adversely affected the output of the hydroelectric generating plants. (…) This combination of factors has kept the electricity sector under pressure for some years and has led to recognition of the need for a reformulation of energy policy, both to ensure a sustainable long term energy supply and to diversify the country's energy matrix. Within this context, in 2014, the new Ministry of Energy drew up an "energy agenda" with the intention of formulating a national long term sustainable energy policy. (...)