Chile Power Report Q4 2009

The newly published Chile Power Report from BMI forecasts that the country will account for 5.45% of Latin American regional power generation by 2013. BMI's Latin America power generation estimate for 2008 is 1,130 terawatt hours (TWh), representing an increase of 2.5% over the previous year. We are forecasting growth in regional generation to 1,320TWh by 2013, representing a rise of 16.9%.

Latin American thermal power generation in 2008 is estimated by BMI at 453TWh, accounting for 40.0% of the total electricity supplied in the region. Our forecast for 2013 is 523TWh, implying 15.5% growth, trimming the market share of thermal generation to 39.6% – in spite of environmental concerns that should be promoting renewables, hydro-electricity and nuclear power. Chile's thermal generation in 2008 was around 34.3TWh, or 7.58% of the regional total. By 2013, the country is expected to account for 6.98% of thermal generation.

For Chile, in 2008 oil was the dominant fuel, accounting for 60.5% of primary energy demand (PED), followed by hydro at 19.5%, gas at 8.4% and coal at 11.6%. Regional energy demand is forecast to reach 726mn tonnes of oil equivalent (toe) by 2013, representing 14.5% growth. Chile's 2008 market share of 4.38% is set to rise to 5.02% by 2013.

Chile is now ranked second, having this quarter overtaken Colombia, in BMI's updated power sector Business Environment Ratings, thanks to its power consumption growth prospects, privatisation progress, competitive landscape and regulatory framework. Country risk factors are generally supportive, but the single-point gap between the respective scores of Chile and Argentina means that the latter could challenge for second place over the longer term.

BMI is now forecasting Chilean average annual real GDP growth of 2.48% between 2009 and 2013, with a decline of 0.9% forecast for 2009. The population is expected to expand from 16.9mn to 17.9mn over the period, with GDP per capita and electricity consumption per capita forecast to increase by 38% and 1%, respectively. The country's power consumption is expected to increase from an estimated 46.2TWh in 2008 to 49.4TWh by the end of the forecast period. This results in a theoretical supply surplus, assuming average annual growth in electricity generation of 3.1%.

Between 2008 and 2018, we are forecasting an increase in Chilean electricity generation of 39.7%, which is mid-range for the Latin America region. This equates to 17.6% in the 2013-2018 period, down from 18.8% in 2008-2013. PED growth is set to fall from 31.1% in 2008-2013 to 14.3%, representing 49.8% for the entire forecast period. An increase of 52.5% in hydro-power use during 2008-2018 is one key element of generation growth. Thermal power generation is forecast to rise by 30.0% between 2008 and 2018. More details of the longer-term BMI power forecasts can be found later in this report.

• Executive Summary
• SWOT Analysis
• Chile Power Business Environment SWOT
• Chile Political SWOT
• Chile Economic SWOT
• Industry Overview
• Global
• Latin America
• Market Overview – Chile
• Primary Energy Demand
• Power Generation
• Power Consumption
• Regulation And Competition
• Pricing
• Power Transmission
• Business Environment
• Latin America Power Business Environment Ratings
• Overview Of Chile's Power Rating
• Limits Of Potential Returns
• Risks To Realisation Of Returns
• Legal Framework
• Infrastructure
• Labour Force
• Foreign Investment Policy
• Tax Regime
• Security Risk
• Industry Forecast Scenario
• Chile Power Outlook
• Generation
• Gas-Fired
• Oil-Fired
• Coal-Fired
• Nuclear Energy
• Hydro-Electric
• Renewable Energy
• Power Costs
• Transmission
• Assumptions And Methodology
• Key Risks To BMI's Forecast Scenario
• Long-Term Power Outlook
• Macroeconomic Outlook
• Power Outlook – Long-Term Forecasts
• Global Snapshot
• Latin America
• Chile Country Overview
• Methodology And Risks To Forecasts
• Competitive Landscape
• Transelec
• Enersis/Endesa
• Suez/Tractebel
• AES
• Colbún
• Pacific Hydro
• Company Monitor
• Enersis
• Country Snapshot: Chile Demographic Data
• Section 1: Population
• Section 2: Education And Healthcare
• Section 3: Labour Market And Spending Power
• BMI Methodology
• How We Generate Our Industry Forecasts
• Power Industry
• Cross Checks
• Sources
• List of Tables
  • Table: Global Summary, 2006-2013
  • Table: Latin America Power Generation, 2006-2013 (TWh)
  • Table: Latin America Thermal Power Generation, 2006-2013 (TWh)
  • Table: Latin America Primary Energy Demand, 2006-2013 (mn toe)
  • Table: Latin America Gas Consumption, 2006-2013 (bcm)
  • Table: Latin America Coal Consumption, 2006-2013 (mn toe)
  • Table: Latin America Nuclear Energy Consumption, 2006-2013 (TWh)
  • Table: Latin America Power Business Environment Ratings
  • Table: Chile Power Sector, 2006-2013
  • Table: Chile Thermal Power, 2006-2013
  • Table: Chile Non-Thermal Power, 2006-2013
  • Table: Chile Power Costs, 2006-2013
  • Table: Chile –Contribution To Growth, 2006-2013
  • Table: Global Summary, 2011-2018
  • Table: Latin America Electricity Generation, 2011-2018 (TWh)
  • Table: Latin America Primary Energy Demand, 2011-2018 (mn toe)
  • Table: Latin America Thermal Power Generation, 2011-2018 (TWh)
  • Table: Latin America Hydro-Electric Generation, 2011-2018 (TWh)
  • Table: Latin America Nuclear Generation, 2011-2018 (TWh)
  • Table: Demographic Indicators, 2005-2030
  • Table: Rural/Urban Breakdown, 2005-2030
  • Table: Education, 2002-2005
  • Table: Vital Statistics, 2005-2030
  • Table: Employment Indicators, 2001-2006
  • Table: Consumer Expenditure, 2000-2012 (US$)
  • Table: Average Annual Wages, 2000-2012