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Chile Power Report Q2 2016

Chile Power Report Q2 2016

BMI View: We maintain our positive outlook for Chile's power market, premised on its stable businessenvironment and investor-friendly regulations, an upbeat macroeconomic prospect and robust growth inpower consumption. The government's use of energy auctions for the regulated market, coupled with energydemand from miners located far from the main power network, will create long-term business opportunitiesfor power generators. Meanwhile, the need to expand Chile's power grid will drive demand for transmissioninfrastructure.

Latest Updates And Structural Trends

In December 2015, Chile's national oil company (NOC) ENAP signed an agreement with Japan's Mitsuifor the development of two combined-cycle gas-fired thermal power plants, the 760MW Luz Minera andthe 510MW Nueva Era plants. The projects - which reportedly have a cumulative investment value ofalmost USD1.5bn - are planned to be built in northern and central Chile, respectively, receiving feedstockfrom the Quintero and Mejillones liquefied natural gas (LNG) import terminals. ENAP plans to bid thetwo gas-fired projects in the upcoming auction for procuring power for Chile's regulated market,scheduled for May 2016.

In January 2016, a bill allowing ENAP to access the power generation sector - by holding a stake of up to66% in power generation projects, under joint ventures (JVs) with private companies - received thedefinitive approval by the Chilean parliament. The government is committed to making ENAP a newpillar of Chile's electricity market, as it hopes that participation of the NOC in the production ofelectricity from natural gas will drive down the country's electricity prices.

These developments support our upbeat growth outlook for gas-fired power generation in Chile over thenext 10 years. Our forecast is also premised on progress in the development of several other gas-firedpower plants in the country, low international LNG prices due to a global glut and the government'scommitment to increasing the role of gas in Chile's energy matrix.


BMI Industry View
Table: Headline Power Forecasts (Chile 2015-2021)
SWOT
Industry Forecast
Chile Snaphot
Table: Country Snapshot: Economic and Demographic Data (Chile 2015-2019)
Table: Country Snapshot: Economic and Demographic Data (Chile 2020-2025)
Table: Country Snapshot: Power Sector
Chile Forecast Scenario
Positive Outlook For Investment And Growth
Coal Generation And Capacity Forecast
Natural Gas Generation And Capacity Forecast
Hydropower Generation And Capacity Forecast
Table: Chile's Major Hydropower Project Pipeline
Renewables Generation And Capacity Forecast
Electricity Generation And Power Generating Capacity
Table: Total Electricity Generation Data And Forecasts (Chile 2014-2019)
Table: Total Electricity Generation Data And Forecasts (Chile 2020-2025)
Table: Electricity Generating Capacity Data And Forecasts (Chile 2014-2019)
Table: Electricity Generating Capacity Data And Forecasts (Chile 2020-2025)
Electricity Consumption
Table: Total Electricity Consumption Data And Forecasts (Chile 2014-2019)
Table: Total Electricity Consumption Data And Forecasts (Chile 2020-2025)
Transmission & Distribution
Table: Electric Power T&D Losses Data And Forecasts (Chile 2014-2019)
Table: Electric Power T&D Losses Data And Forecasts (Chile 2020-2025)
Industry Risk/Reward Index
Industry Risk Reward Index
Table: Macri's Planned Power Policy Reforms
Table: Latin America Power Risk/Reward Index (Scores Out Of 100
Chile Power Risk/Reward Index
Rewards
Risks
Market Overview
Key Policies And Market Structure
Regulation And Competition
Sustainable Energy Policies
Pricing
Chile Power Projects Database
Competitive Landscape
Transelec
Enersis
ENAP
Engie
AES
Colbún
Pacific Hydro
Company Profile
Enersis
Regional Overview
Latin America Power: Key Themes For 2016
Glossary
Table: Glossary Of Terms
Methodology
Methodology And Sources
Industry Forecast Methodology
Sources
Risk/Reward Index Methodology
Table: Power Risk/Reward Index Indicators
Table: Weighting Of Indicators

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