CHILE : Field Trip March, 9 - 14, 2009 Chile is a country of the end of the world. Topics In its south extreme, the island of Tierra del Fuego, Cape Horn, its unleashed seas, its steep glaciers. Chilean Energy Context 2 In the North, the desert of Chilean electricity system 5 Atacama, one of the driest to the world, surrounded by Gaz combined cycle 6 the volcanoes of the Andes Water treatment plant 7 Cordillera peaking in more of 6000m of height. Tightened Town Gas injection plant 8 between these two extremes, Construction site of a coal fire pushed in the Atlantic Ocean by the high mountains of the power plant 9 Mountain range, this narrow Copper mine 10 country could seem at first sight inhospitable. It is not. Geothermal potential ? 11 In the center of the country, Salar of Lithium 12 the rivers collecting waters of mountains irrigate fertile Energy national commission 13 valleys, which welcome all Rapel Dam 14 sorts of cultures: the corn of course, very present in the Partners 15 Chilean food, the potatoes, the Contacts 16 various cereal, and the fruits, the apples, the peaches, the plums, the avocados, but also the vineyard, the Chilean vine growing taking its international development since around ten years. If the geography of Chile can impress,its inhabitants Class of 2008 will reassure. Of a very big kindness, pleasant and smiling, the persons met during these some days in Chile marked us. In a mixture of Spanish, French and English, our exchanges were extremely enriching for all, both to the professional plan and to the human plan. Chile is a country of the end of the world, and Chileans conquered us. Mastère OSE - Ecole des Mines de Paris Rue Claude Daunesse - B.P 207 06904 SOPHIA ANTIPOLIS Cedex - FRANCE Tel: +33 4 93 95 74 46 Fax : +33 4 97 15 70 71 - http://mastere-ose.fr - [email protected] 2 MASTÈRE OSE : FIELD TRIP CLASS OF 2008 : CHILE CHILE Chilean Energy Chain Chile is a net energy importing country. There is no big energy resource. For example, the national oil production accounts for only 1,7% of the national demand. In the same protect environment. There is energies by 2010. way, merely all natural gas no nuclear production in Chile, consumption is imported from but debates about technical At present only 2 MW of wind Argentina. Four pipelines have feasibility have begun in energy are installed in the been constructed between the 2006. Wind and geothermal Aysen system, but there is two countries. The building energy are also considering, an important potential in the of a new pipeline across but renewable energies are south of the country. The the Andes will strengthen at a low level in the present drawback is the connection interconnection. In 2004 the situation. with the grid. Argentine government has put important restrictions on In Chile energies are classified Little hydro could be a solution its gas exportations in order between conventional and for the supply of electricity in to protect its national market. unconventional energies. rural areas, since it has not But it triggers off an energy The first ones are the fossil been well developed so far. shortage in Chile. Since fuels and big hydropower There are about 110 plants in then, Chile tries to be more (>20MW), while the second the country today. independent from Argentina. ones are biomass, wind, solar, For example the conversion of tidal, and little hydropower. Solar energy in Chile is used the former town gas grid into mainly in the north, where a natural gas grid has been 15% of the new installed the radiation is very high. slowed down, lots of natural capacity in Chile must be The growth of photovoltaic gas plants have been turned renewable and unconventional production is tightened with into diesel plant, and two methane terminals are building near Valparaiso and Antofagasta. The electric c o n s u m p t i o n exceeds 51573 GWh in 2005, 54% of this produced by h y d r o p o w e r plants. But this h y d r o p o w e r production is still very low. The country uses only 20% of the hydropower potential, mainly installed power (in MW) regarding to the localization and the type of plant in order to Mastère OSE - Mines ParisTech Rue Claude Daunesse - B.P 207 06904 SOPHIA ANTIPOLIS Cedex - FRANCE http://mastere-ose.fr - [email protected] POST MASTER SPECIALIZED IN ENERGY SYSTEMS OPTIMISATION 3 CHILE telecommunications, radio- broadcasting in the isolated region, lighting systems and local electrification. But despite of the important potential in the north, photovoltaic is insignificant. Biomass is used in Chile to produce electricity, thanks to cogeneration plants which use the wastes of cellulose production processes. Chile is a good opportunity plants. There are only two for energy firms which want hydropower plants, which It is said that Chile is not ready to start some projects in accounts for 0,37% of the for nuclear production, even if South America. Indeed it has installed capacity. nuclear energy is considered important energetic needs, its for long term problematic government is democratic and In the Aysen system, the (2025), because of coal economy is stable. installed capacity is 23,41MW, shortage and hydropower made up of 63,86% of thermal capacity saturation. Indeed plants, 27,68% of hydropower the present grid can not run plants and 8,46% of wind with a plant of more than energy. 500MW while nuclear project are profitable only above The Magellanes system is 1000MW. Electrical System In Chile, there are 4 interconnected electric grids. The SING is between the towns of Arica and of Antofagsta, and accounts for 30,1% of the installed capacity in the country. The SIC is between the towns of Taltal and Chiloé and accounts divided into 3 sub systems: for 69,01% of the installed Punta Arena, Puerto Natales, capacity. The Aysen system is Puerto Porvenir. The installed in the XI region and accounts capacity of these systems is for 0,28% and the Magellanes respectively 58,5MW, 4,2MW system feeds the XII region, and 1,8MW, all of these from accounting for 0,54% of the thermal plant. installed capacity. In the SIC, 60,13% of In the SING system the the installed capacity is production is mainly thermal, hydropower, and 39,87% is with 99,63% of coal plants, produced by coal or fuel oil fuel oil plants and natural plant and combined cycle gas-fueled combined cycle plant. Mastère OSE - Mines ParisTech Rue Claude Daunesse - B.P 207 06904 SOPHIA ANTIPOLIS Cedex - FRANCE http://mastere-ose.fr - [email protected] 4 MASTÈRE OSE : FIELD TRIP CLASS OF 2008 : CHILE CHILE All the energy sector is private in Chile, except the ENAP (national oil of south of Chile). For example the firms in the systems of transmission and distribution are far more numerous than in France. The market is more competitive. The main society of electricity transmission is owned by the Canadian Brookfield Asset Management Inc. This situation prevents from generating economies of scale since there are a lot of little firms. The National Energy Commission is responsible for regulating prices and for deciding energy policies. Reforms in the 80’s have taken politics away from the decisions, by replacing regulation by a competitive market. In 2010, system will become a tender system. Mastère OSE - Mines ParisTech Rue Claude Daunesse - B.P 207 06904 SOPHIA ANTIPOLIS Cedex - FRANCE http://mastere-ose.fr - [email protected] POST MASTER SPECIALIZED IN ENERGY SYSTEMS OPTIMISATION 5 SANTIAGO Electricity in Chile Monday, March 9th morning The electric system: balance of energy, installed capacities and evolutions have been pre- sented by M. Sebastian Bern- stein Sr. who was at the head of the Natioanl Energy Com- mission and is now a consult- ant. The Chilean primary energy consumption balance is: 38% from petroleum products, 21% natural gas and 18% hydroelectric. On the other side, Chile is importing 95% of the oil and 70% of the natural gas it consumes. The Mining industry is the major electricity consumer. The with some diesel engines supply lead to stop all the gas electric system is divided in for support. In 1997, Chile power plants projects. Today, concluded coal and diesel power plant w i t h constitute the majority of the A r g e n t i n a investments in new production a supply capacities. agreement for low cost Electricity market: natural gas. structure and organization. The National Commission of Energy deals with all electric market regulation and control issues. A spot market exists for intraday adjustments, only for generators. Long term agreements govern trade between generators, industries and retailers. The two interconnected blocks: Consequently, the installed central dispatch is based on in the north with 3.6GW of combined cycle gas power the merit order principle. The installed power and in the plants capacity grew up market is open since the 80’s center with 9.5GW of installed quickly (3.5 GW of installed for generation and distribution power. For the year 2008, capacity). In 2004, during the investments. No constraining the last figure available, the Argentine gas crisis, the cost of rules and access to the market electricity production reached natural gas increased five fold is easy for new operators. 60.5 TWh. Until 1997, the bringing the price of electricity There are incentives for Chilean production mix was to its higher levels in Chile. market-based investors. principally composed of coal This shortage in argentine gas and hydraulic power plants; Mastère OSE - Mines ParisTech Rue Claude Daunesse - B.P 207 06904 SOPHIA ANTIPOLIS Cedex - FRANCE http://mastere-ose.fr - [email protected] 6 MASTÈRE OSE : FIELD TRIP CLASS OF 2008 : CHILE SANTIAGO Nueva Renca plant Monday, March 9th AES GENER Santiago and the North of Chile are mainly fueled by This modification for thermal electrical plants.