When Chile decided to import natural gas from Argentina in 1995, no one would have thought that this decision actually allowed Chile’s energy development to embark on a thorny road that was full of tribulations, embarrassment, and contradictions.
At that time, 65% of Chile’s energy came from hydropower. However, due to the price advantage of fossil fuels, more and more places have turned to natural gas. They began to build natural gas pipelines and natural gas power plants. At the same time, the government has issued a series of measures to promote the rapid development of natural gas power generation. According to data from Chile's National Energy Commission (CNE), in Chile, 50% of Chile's electricity supply came from natural gas in 2003, but at the cost of Chile’s loss of energy independence and increasing dependence on Argentina’s energy.
As Professor Rudnik of the University of Chile’s School of Power Engineering stated, the lack of fossil fuel resources is the crux of the country’s energy problem; as the most important energy supply method in Chile, hydropower has not been fully developed and is submitted to the government every year. Most hydropower development projects have not been approved.
The Chilean energy sector was hit hard in 2004. Due to the increase in domestic demand, Argentina began to reduce natural gas exports and various controls were imposed on natural gas carriers. This has caused Chile to suffer a lot and imports of natural gas plummeted. According to CNE statistics, more than half of Argentine natural gas transport ships were affected in 2007.
To make matters worse, the Argentine government subsequently raised the export tax on fossil fuels. This has forced many power plants in Chile to switch to more expensive diesel fuel. By the beginning of 2008, the intellectual power price was more than 40% higher than in 2006, and companies in all walks of life were affected to varying degrees.
Driven by the diversified development environment, the Chilean government began to build LNG power plants by public auction. In June 2009, Chile’s first LNG terminal was built in the Valparaiso area. The first LNG carrier that entered the port was from Trinidad and Tobago. Since then, Chile has begun to import natural gas from countries such as Egypt and Equatorial Guinea. It is reported that Chile will also have an LNG power plant put into operation in the next few weeks. Subsequently, Chile introduced a number of regulations to promote the use of fossil fuels such as coal to generate electricity, and most of them will be implemented within the next year.
Of the several energy sources imported by Chile, coal is the cheapest. At present, Chile's power grid has a capacity of 2,050 megawatts. In addition, an electricity development plan to increase power generation to 7,200 megawatts has already been implemented. The plan includes several coal-fired thermal power plant projects, some of which have been approved by the government.
From an environmental point of view, this may not be good news. In a 2008 report from CNE, some experts warned that more and more coal-fired power plants will lead to rising carbon emissions in Chile. As it continues to develop, Chile’s annual emissions will rise from the current 70 million in 2030. The ton has risen to 300 million tons, which is not only far higher than European countries, but also much higher than other developing countries. However, Chile’s per capita carbon emissions are 3.9 tons, which is still relatively small compared to 7.6 tons in Spain, 20.6 tons in the United States, and 25.6 tons in Australia.
As it saw the harm of coal power generation to the environment, the Chilean government has gradually begun to pay attention to renewable energy. In 2007, government legislation made it clear that Chile must change all this and let LNG, renewable energy, and hydropower become dominant again. By 2020, we must complete the goal of supplying electricity mainly from renewable sources.
However, Professor Rudnik does not think that the development of new energy can help Chile reduce its dependence on coal. He believes that because the current coal still has obvious price advantages, if the government chooses new energy sources, the government will have to use a lot of subsidies. This will be a big burden for the Chilean government.
Chile should develop nuclear power, but the biggest challenge is how to persuade the private sector to invest in nuclear energy, especially given the uncertain legal and financial support of the government. Michelle Bachelet, former president of Chile, whose term of office has just ended, has always opposed the development of nuclear energy and advocates the development of other renewable energy sources. However, the new President Sebastian Pinella has publicly expressed support for the development of nuclear energy. Chile may be able to embark on a new path of energy development in the future.
At that time, 65% of Chile’s energy came from hydropower. However, due to the price advantage of fossil fuels, more and more places have turned to natural gas. They began to build natural gas pipelines and natural gas power plants. At the same time, the government has issued a series of measures to promote the rapid development of natural gas power generation. According to data from Chile's National Energy Commission (CNE), in Chile, 50% of Chile's electricity supply came from natural gas in 2003, but at the cost of Chile’s loss of energy independence and increasing dependence on Argentina’s energy.
As Professor Rudnik of the University of Chile’s School of Power Engineering stated, the lack of fossil fuel resources is the crux of the country’s energy problem; as the most important energy supply method in Chile, hydropower has not been fully developed and is submitted to the government every year. Most hydropower development projects have not been approved.
The Chilean energy sector was hit hard in 2004. Due to the increase in domestic demand, Argentina began to reduce natural gas exports and various controls were imposed on natural gas carriers. This has caused Chile to suffer a lot and imports of natural gas plummeted. According to CNE statistics, more than half of Argentine natural gas transport ships were affected in 2007.
To make matters worse, the Argentine government subsequently raised the export tax on fossil fuels. This has forced many power plants in Chile to switch to more expensive diesel fuel. By the beginning of 2008, the intellectual power price was more than 40% higher than in 2006, and companies in all walks of life were affected to varying degrees.
Driven by the diversified development environment, the Chilean government began to build LNG power plants by public auction. In June 2009, Chile’s first LNG terminal was built in the Valparaiso area. The first LNG carrier that entered the port was from Trinidad and Tobago. Since then, Chile has begun to import natural gas from countries such as Egypt and Equatorial Guinea. It is reported that Chile will also have an LNG power plant put into operation in the next few weeks. Subsequently, Chile introduced a number of regulations to promote the use of fossil fuels such as coal to generate electricity, and most of them will be implemented within the next year.
Of the several energy sources imported by Chile, coal is the cheapest. At present, Chile's power grid has a capacity of 2,050 megawatts. In addition, an electricity development plan to increase power generation to 7,200 megawatts has already been implemented. The plan includes several coal-fired thermal power plant projects, some of which have been approved by the government.
From an environmental point of view, this may not be good news. In a 2008 report from CNE, some experts warned that more and more coal-fired power plants will lead to rising carbon emissions in Chile. As it continues to develop, Chile’s annual emissions will rise from the current 70 million in 2030. The ton has risen to 300 million tons, which is not only far higher than European countries, but also much higher than other developing countries. However, Chile’s per capita carbon emissions are 3.9 tons, which is still relatively small compared to 7.6 tons in Spain, 20.6 tons in the United States, and 25.6 tons in Australia.
As it saw the harm of coal power generation to the environment, the Chilean government has gradually begun to pay attention to renewable energy. In 2007, government legislation made it clear that Chile must change all this and let LNG, renewable energy, and hydropower become dominant again. By 2020, we must complete the goal of supplying electricity mainly from renewable sources.
However, Professor Rudnik does not think that the development of new energy can help Chile reduce its dependence on coal. He believes that because the current coal still has obvious price advantages, if the government chooses new energy sources, the government will have to use a lot of subsidies. This will be a big burden for the Chilean government.
Chile should develop nuclear power, but the biggest challenge is how to persuade the private sector to invest in nuclear energy, especially given the uncertain legal and financial support of the government. Michelle Bachelet, former president of Chile, whose term of office has just ended, has always opposed the development of nuclear energy and advocates the development of other renewable energy sources. However, the new President Sebastian Pinella has publicly expressed support for the development of nuclear energy. Chile may be able to embark on a new path of energy development in the future.
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