Identifier
Created
Classification
Origin
08SANTIAGO792
2008-09-02 11:57:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Santiago
Cable title:  

OPPORTUNITIES FOR ENERGY ENGAGEMENT: A/S SULLIVAN MEETING

Tags:  ENRG SENV BTIO OEXC PGOV CI 
pdf how-to read a cable
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PP RUEHWEB

DE RUEHSG #0792/01 2461157
ZNR UUUUU ZZH
P 021157Z SEP 08
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC PRIORITY 3652
INFO RUEHBU/AMEMBASSY BUENOS AIRES 1020
RUEHPE/AMEMBASSY LIMA 5654
RUEHLP/AMEMBASSY LA PAZ SEP BRASILIA 0399
RUEHMN/AMEMBASSY MONTEVIDEO 4022
RUEHAC/AMEMBASSY ASUNCION 3508
RUEHCV/AMEMBASSY CARACAS 1764
RHEBAAA/DEPT OF ENERGY WASH DC
UNCLAS SANTIAGO 000792 

STATE FOR WHA/BSC, WHA/EPSC AND EEB/ESC/IEC

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ENRG SENV BTIO OEXC PGOV CI
SUBJECT: OPPORTUNITIES FOR ENERGY ENGAGEMENT: A/S SULLIVAN MEETING
WITH CHILEAN ENERGY MINISTER

REF: SANTIAGO 759

UNCLAS SANTIAGO 000792

STATE FOR WHA/BSC, WHA/EPSC AND EEB/ESC/IEC

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ENRG SENV BTIO OEXC PGOV CI
SUBJECT: OPPORTUNITIES FOR ENERGY ENGAGEMENT: A/S SULLIVAN MEETING
WITH CHILEAN ENERGY MINISTER

REF: SANTIAGO 759


1. (SBU) SUMMARY: On August 22, EEB A/S Sullivan and Minister
Tokman discussed Chile's progress on energy issues since their
December 2007 meeting. Tokman commented favorably on U.S.-Chile
cooperation on energy issues and focused on Chile-California
activities, the domestic nuclear debate, Chile's proposed virtual
national renewable energy center, and the country's quest for
membership in both the Organization for Economic Cooperation and
Development (OECD) and the International Energy Agency (IEA). A/S
Sullivan encouraged on-going U.S.-Chile collaboration, particularly
through the U.S. National Renewable Energy Lab (NREL),and offered
assistance on both the OECD and IEA membership processes. Based on
this exchange and other recent discussions with Minister Tokman
(REFTEL),this may be an opportunity for Post to arrange a visit for
him to NREL tailored to his specific interests. END SUMMARY.

Tokman Highlights Progress on Chile-California
-------------- -


2. (SBU) On August 22, EEB A/S Sullivan, WHA PDAS Ambassador Kelly,
WHA EPSC Director Matthew Rooney, TPP Senior Policy Advisor Mikael
Lurie, DCM Carol Urban and ESTH officer met with Energy Minister
Marcelo Tokman, Director of Policy, Claudio Huepe, and Deputy
Director of International Affairs at the National Energy Commission,
Corissa Petro. A/S Sullivan expressed interest in learning about
energy developments in Chile since his meeting with Tokman last
December.


3. (SBU) Tokman highlighted ongoing efforts under the
Chile-California Partnership for the 21st Century
("Chile-California"),including contacts with the California Energy
Commission (CEC) and Lawrence Berkeley National Lab (LBNL).
Chile is working with both CEC and California's Pacific Gas and
Electric (PG and E) utility company to examine different tariff
structures and to evaluate which aspects of California's regulatory
framework might work in Chile. Tokman noted that someone from LBNL
is currently in Chile to conduct surveys on energy end-use in order
to develop a conservation supply curve (CSC). [Note: CSCs are

economic models used to estimate the potential benefits of energy
conservation. End note.]

Increased Public Consensus on Nuclear Debate?
--------------


4. (SBU) Tokman commented briefly on a recent informative Nuclear
Regulatory Commission presentation on deregulation. He explained
that, despite resistance from environmentalists, there is greater
public consensus on the need to analyze the nuclear alternative as
part of the solution for meeting Chile's projected energy demands
for 2020. He was frustrated with the simplistic view held by much
of the public that the decision to "go nuclear" could be made and
implemented quickly enough to solve the current energy crisis. He
would like to center the discussion on long-term planning and
institutional effort.

Renewable Energy Center
--------------


5. (SBU) Listing some of the country's potential in natural
resources (geothermal, tides, wind and solar),Tokman outlined
Chile's plan to launch a renewable energy center that will start as
a virtual center and eventually conduct research and development
(REFTEL). According to Tokman, Chile does not want to duplicate
international or regional research efforts, but would like to have
agreements to share knowledge with the global network of research
centers. He added that Chile could benefit from U.S. technical
innovation, and that the country is trying to systemize and publish
maps of its solar radiation, tides and wind potential to help
promote its resources. Chile would host the center, but make
information and products available to the region, especially the
Union of South American Nations (UNASUR). Elaborating on the
Inter-American Development Bank's assistance, Tokman said there is a
Dutch expert coming to Chile within the next 2-3 weeks to help
devise an institutional model for the proposed center.


6. (SBU) Following up on his recent discussion with Dr. Doug Arent,
Director of the Strategic Energy Analysis and Applications Center at
NREL, Tokman again expressed interest in working with NREL (REFTEL),
which A/S Sullivan fully endorsed. A/S Sullivan also mentioned
NREL's interest in increasing the number of MOUs between its labs

and other G-8 research labs, as well as broadening cooperation
generally. Tokman reiterated his interest in NREL's institutional
structure and expressed his desire to learn more about project
financing and NREL's efforts on micro-algae (REFTEL). He commented
on Chile's potential, given the country's algae and solar resources,
as a site for a pilot or R&D project.

Taking Steps on OECD and IEA Memberships
--------------


7. (SBU) Tokman also met recently with International Energy Agency
Executive Director Nubuo Tanaka and his Deputy, Ambassador William
Ramsay, in Paris. According to Tokman, once Chile is accepted into
the Organization for Economic Cooperation and Development (OECD),
its next goal is to participate in the International Energy Agency
(IEA). In response to A/S Sullivan's question about the process,
Tokman identified Chile's need (1) to understand the requirements
for membership; and (2) to survey the energy sector, a process that
is already underway. Both Tokman and Huepe suggested inviting
experts to Chile to provide both an in-depth review of the sector
and educational seminars. A/S Sullivan offered the assistance of
his own office, plus that of Ambassador Simons and Post on OECD and
IEA issues.

COMMENT: Opportunity for Chile-NREL Collaboration
-------------- --------------


8. (SBU) During the meeting, Tokman mentioned his August 11
discussion with NREL's Dr. Arent and a pending U.S. Trade
Development Agency (TDA) orientation visit on renewables, planned
for October 2008 (REFTEL). Post has been actively engaged with TDA
on organizing the visit, which does not specifically include
biofuels issues, and has been trying to arrange dates when Tokman
could join the delegation. However, given that the GOC (not TDA)
would cover the costs of his visit to the U.S., and that Dr. Arent
has offered NREL's assistance, Post believes this would be a good
opportunity to arrange a visit to NREL to focus on Tokman's
particular interests: (1) institutional structure and partnership
arrangements; (2) biofuels/micro-algae research, including project
financing and possible pilot projects in Chile. END COMMENT.


9. (U) A/S Sullivan and PDAS Kelly cleared this cable.

SIMONS