Hydro or Coal: Energy and the Environment in Chile

Abstract

Coal and hydro will be the main sources of electric
energy in Chile for the near future, given that natural gas
from neighbouring Argentina is not longer available and
LNG price projections leave it only as a backup fuel. The
country has limited energy resources, importing more than 73% of its energy. Hydroelectric untapped resources are significant, but they are mostly located in the extreme south of the country, in unpopulated areas of great unspoiled beauty. Non governmental organizations both within the country and from the US are strongly opposing the use of these resources. Renewables, which are only at an early stage, are argued as an alternative, but do not represent a solution with rates of growth of electricity demand over 6% a year. This summary discusses the issues being faced and the environmental dilemma faced by the country, where both coal and hydro produce some kind of impact. The role of the State and the private sector in determining the country’s energy matrix arises as another central discussion.