CHILEAN CONGRESS WELL-INFORMED ON ENERGY ISSUES,

UNCLAS SANTIAGO 000715

SIPDIS

STATE FOR OES

E.O. 12958: N/A
TAGS: SENV PGOV CI
SUBJECT: CHILEAN CONGRESS WELL-INFORMED ON ENERGY ISSUES,
EAGER FOR U.S. COOPERATION


1. SUMMARY. Chile's Senate Energy Committee has a solid
grasp of Chile's energy challenge and an eagerness for
further cooperation with the U.S. on energy issues. Members
told the Ambassador July 30 Chile must become more energy
independent, and proposed a variety of options--from energy
conservation to nuclear and renewable power to greater
political incentives for petroleum exploration--to achieve
this goal. END SUMMARY.


2. The Ambassador traveled to Valparaiso at the request of
the Senate Energy and Mining Commission Chair Ricardo Nunez
to discuss U.S.-Chile cooperation on energy issues. Nunez
was joined by Senators Jose Antonio Gomez, Carlos Bianchi,
Jaime Orpis, and Baldo Procurica. Ambassador was accompanied
by E/Pol Counselor, Political Officer, and E/Pol Specialist.
Septel will report on the Ambassador's meetings with Senate
President Adolfo Zaldivar and Chamber of Deputies Acting
President Guillermo Ceroni, held in conjunction with this
visit.

Senators Keenly Interested in Energy Solutions
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3. The committee represents parties from across the
political spectrum but is united in its concern about Chile's
energy dependence and in its eagerness for cooperation with
the U.S. on energy research and policy innovations. Chile's
energy needs are significant. Senator Baldo Procurica, from
the center-right Renovacion Nacional party, noted that Chile
is likely to consume twice as much electricity in 2020 as it
does today. In addition, Chile's economic growth is closely
linked to its use of energy, particularly because the
country's copper industry is very energy intensive. If Chile
wants its economy to grow, Independent Sen. Carlos Bianchi
said, it has to fix its energy problem.


4. Several senators noted that almost all new investment in
power generation in Chile has been in coal-burning plants
despite the attendant pollution and climate change problems.
Procurica noted that investment in new sources of energy
takes time, and that Chile is likely to be dependent on coal
for years to come. Committee President Sen. Ricardo Nunez, a
Socialist, noted that Chile has only one power plant using
renewable energy, and it produces just 9 MW of power. Other
senators emphasized the need to invest more in renewable
sources, citing the country's considerable solar, wind, and
geo-thermal resources, and urged the creation of a political
structure to encourage investment in the energy sector.
Bianchi noted that a year ago he urged Energy Minister Tokman
to decentralize Chile's energy system, encouraging each
region to use its own natural advantages to produce its own
energy. Senator Jaime Orpis of the conservative Democratic
Independent Union (UDI) party said that, because renewable
energy was still expensive, northern Chile should develop
nuclear power plants. While finding new forms of energy is
important, Nunez emphasized that there is "no alternative to
saving energy."


5. Throughout the meeting and a subsequent lunch, the
senators displayed a notable sense of urgency and a desire
for Chile to take a leading role in meeting its energy needs.
The senators eagerly engaged with Ambassador Simons in
understanding U.S. energy policies, initiatives, and public
attitudes, particularly as insights into Chile's energy
options. Procurica noted that Chile doesn't want to be just
an energy and technology consumer, it seeks to be an actor in
shaping the choices available to it. Bianchi called for an
increased Chilean focus on energy, noting that the country
had advanced less than its neighbors in meeting its energy
needs. The Ambassador invited the senators to visit the U.S.
congressional energy committees and promised to send
information regarding U.S. energy initiatives and G8 energy
commitments.

Comment
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6. Chile's legislature is well-informed, engaged, and eager
for cooperation on energy issues. The senators offered a
range of sound opinions and intelligent questions, and are
eager to learn what they can from the American experience
with energy policy. End Comment.
SIMONS