BNamericas reporter that the Paris based International Energy Agency on October 22nd 2009 presented an almost 300 page review of Chile's energy policy. While the organization commended the country on significant achievements, it also recommended clearer regulation for long term investment to integrate environmental costs.
Mr Nobuo Tanaka executive director of IEA said that "Chile has made remarkable strides to strengthen energy security and improve energy policy over the last few years. IEA member countries and other countries can learn a lot from the Chilean experience when it comes to implementing emergency measures."
He said that Chile, meanwhile, should continue to diversify its energy sources and suppliers and actively develop both energy efficiency and renewable resources. He added that "Given the country's outstanding renewable potential, Chile should consider accelerating this process even further through market-based mechanisms such as production tax credits, as adopted by several states of the US, or the introduction of tradable green certificates as in the UK and Italy."
Over 12GW of non conventional, Mr Ghislaine Kieffer IEA program manager for Latin America said that renewable capacity could be developed with current technology, adding that some estimates show a much higher potential. He added that Chile should also seek to remove the political controversy that surrounds options such as large scale hydro and nuclear power and democratize the debate surrounding the energy sources.
The IEA report recommended that Chile consider transferring control of the SIC and SING grids to independent entities so that the system operators are impartial and represent the interests of all users.
Mr Tanaka said that "Chile should create a framework so that long-term investment decisions will be based on long term cost-benefit analysis, including environmental aspects and the downward cost curve of certain technologies, thereby containing the share of fossil fuels in electricity generation. Chile should now consider formulating a national greenhouse gas emissions mitigation strategy with indicative objectives, both nationally and at the sector level. To prepare Chile's economy for a possible post Kyoto international climate agreement."
Mr Kieffer characterized the study as one written for policy makers by policy makers rather than a more formal academic study.
