GRAPHICS

Chile's Energy Needs

Sep 6, 2012 | 18:52 GMT

Stratfor's graphic of the day features a standout geopolitical map, chart, image or data visualization reflecting global and regional trends and events.

(Stratfor)

Chile's Energy Needs

Chile's geography makes it very difficult to develop and strengthen an integrated national electricity grid. The country effectively has two major separate electricity grids: one in the center, the Sistema Interconectado Central; and one in the north, the Sistema Interconectado del Norte Grande. The Sistema Interconectado del Norte Grande network is overwhelmingly dedicated to powering the mining operations in the sparsely populated north, specifically the Atacama and Antofagasta regions. The Sistema Interconectado del Norte Grande network has an installed capacity of 3,700 megawatts, 87 percent of which is derived from coal, oil or natural gas thermoelectric plants. The largest centers of energy generation and consumption in Chile are located in the populous center of the country and rely on the Sistema Interconectado Central network, which can generate up to 11,700 megawatts. This network provides power to the bulk of Chile's businesses and its public, and half of its capacity comes from hydroelectric and renewable sources. Both networks are under tremendous stress to supply Chile's mining sector with sufficient energy and have experienced several disruptions in the past. In order to preserve the growth of its mining sector, Chile is considering all available options for producing electricity including hydropower, oil, natural gas and coal, though each has drawbacks. It will also have to contend with a protest movement against electricity generation methods potentially harmful to the environment and an increasingly gridlocked political system unable to push through economically necessary if controversial energy projects.