[IEA]：Energy Policy Review 2009: Chile

Introduction

Economic Growth: Since 1990, Chile has been the fastest-growing economy in Latin America, driven by sound economic management and integration into the global economy.
Energy Policy Achievements: The pioneering privatization and liberalization of the electricity sector in the 1980s laid the foundation for a competitive energy sector, supporting rapid economic growth.

Key Challenges

Energy Supply: Despite successful liberalization, Chile faces ongoing challenges in finding additional energy supplies to fuel economic growth.
Energy Security: The country depends on imports for three-quarters of its energy needs and has limited fossil energy resources.
Recent Crises: Over the past decade, the electricity sector has faced three periods of significant stress, notably in 2007/2008 due to drought and loss of natural gas imports from Argentina.

IEA's Role and Recommendations

Liberalization: The successful liberalization of the power sector in the 1980s remains a cornerstone.
State Role: The state plays a crucial role in ensuring energy security.
Long-Term Energy Policy: Re-formulating long-term energy policy is essential.
Institutional Framework: Proposing a reorganization of the institutional framework.
System Operators: Greater independence for system operators.
Regulatory Framework: Need for a clear regulatory framework integrating social and environmental costs.

Challenges Ahead

Finding Additional Energy Supplies: Immediate challenge includes finding new energy sources to support economic growth and replace expensive diesel oil.
Diversification: Coal will play a part in energy diversification but should be placed in the context of long-term sustainability.
Climate Change: The National Action Plan for Climate Change aims to mitigate greenhouse gas emissions.

Conclusion

IEA Support: The IEA supports efforts to strengthen the institutional framework and suggests measures to enhance competition in gas and electricity markets.
Future Outlook: The Chilean government's proactive approach to energy policy is timely and aligns with ongoing global advancements in energy policy.

Acknowledgements

Government Contribution: Special thanks to Chile's current Energy Minister, Mr. Marcelo Tokman, and the many officials and outside commentators who contributed to the review.

Executive Director's Note

Usefulness: The report is expected to be a valuable resource for incoming energy policymakers in Chile.
Future Work: The IEA and the Chilean government have mapped out a programme of work for the next two years, promising continued collaboration.

Energy Policy Review 2009: Chile