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19% of national generation; 2) the Central Grid, accounting for68.5%ofnationalgenerationandserving93%of Chile’s population; 3) the Aysen Grid (0.3% of total generation); and 4) the Magallanes Grid (0.8% of total generation). Approximately1millionpeopleinruralareas donothaveaccesstothegrid. By2005,however, President Frei is committed to extending electric supply to the entire rural population. In addition to the 4 grids, “self producers” account for 11.6% of national generation. Electricity transmission and distribution takes place through the 4 grids, as well as 36 electricity distribution companies. InlateSeptember1998,Chileswitchedtosummertime three weeks early in an effort to conserve energy following alongdroughtwhichaffectedtheCentralGrid. The drought cut hydroelectric output significantly, and in particular affected utilities such as ENDESA which rely heavily on hydroelectricity (80% of the energy used in the centralgrid). Thedrought,coupledwiththeuntimely failure of two thermal plants, forced most of the country to ration for two weeks in mid-November 1998. Chile was the first country in Latin America to liberalize andprivatizethepowersectorinthe1980s. Itspower sectorishighlycompetitive. Twocompanies,however, ENDESA and CHILGENER, dominate the sector. Fifty percent of Chile’s energy is supplied by private producers. Electricitycostsrangebetween5¢/kWhand 8¢/kWh in the north where thermal sources are predominant, and 3¢/kWh in the south where hydropower resourcesdominate. Government / Legislation Comisión Nacional de Energía (CNE) CNE was established in 1978 with a law decree in the Ministry of Mines. It is charged with coordinating the plans, policies and standards of the energy sector and in particular the electricity subsector. CNE has created three committees: ElectrificationofRuralZones,Energy Efficiency, and Energy Alternatives. CNE regulates electricity prices by setting the “node” price of electricity in various parts of the country every six months. This is the price that distribution companies pay forelectricityandisbasedonthemarginalcostofenergy and capacity. Node prices have varied widely over the past ten years. The only government subsidy that exists in Chile is for investmentsinruralelectrification,primarilyforsmall solarandwindprojects. TheGOCsubsidizespartofthe investment that the private sector must make in rural Geothermal Resources in Latin America & the Caribbean 142PDF Image | Geothermal Resources in the Caribbean and Latin America
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