Energy Policies Beyond IEA Countries: Chile 2018
Chile’s energy policy has evolved dynamically in recent years. In response to changes
in the domestic and international environment, significant institutional and policy
reforms as well as major infrastructure projects have been carried out. The National
Energy Policy 2050 was adopted in 2015, following an exceptionally inclusive public
consultation. The electricity sector, in particular, has developed quickly.
This second review of Chile’s energy policies by the International Energy Agency finds
that the country has emerged as a world-class destination for solar and wind energy
developers. New legislation encourages investment in generating capacity across the
electricity sector. The expanded role of the state in energy planning has helped to
boost project development, especially in electricity transmission. The country now
also has an interconnected national electricity system.
Integrating growing shares of variable renewable energy requires a flexible power
system. More transmission infrastructure, storage, and demand-side response are needed.
The government should now ensure that the electricity market design and infrastructure
facilitate the integration of solar and wind power. By exploiting its vast renewable
energy potential, Chile can help reduce electricity prices and dependency on fuel
Renewables and energy efficiency can also help limit carbon emissions and air pollution.
Chile should make more use of mandatory energy performance standards for products,
equipment, vehicles and buildings. Efficient and clean use of firewood and alternative
heating technologies can be supported through policies, regulation and financial incentives.
Energy and climate aspects should also be an integral part of the long-term policies
for transport and urban development.
Published on February 03, 2018
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