Electric Power Equipment
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.
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.