CHILE: READY FOR AN ENERGY PARTNERSHIP, PLANS RENEWABLE

UNCLAS SANTIAGO 000202

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

SIPDIS

E.O. 12958: N/A
TAGS: ECON ENRG KNNP SENV TRGY PGOV CI
SUBJECT: CHILE: READY FOR AN ENERGY PARTNERSHIP, PLANS RENEWABLE
ENERGY CENTER, AND REQUESTS PILOT PROJECTS

REF: 08 SANTIAG0 1087


1. (SBU) SUMMARY: In recent conversations with the Ambassador,
Energy Minister Tokman has outlined Chile's desire to be a strong
partner under the proposed Energy Partnership of the Americas and
its interest in increasing U.S.-Chile collaboration on energy
efficiency and renewable energy. Tokman sketched out Chile's plan
for a renewable energy center that might eventually involve other
countries in the region. He also solicited U.S. support for a
proposed 10-15 megawatt solar project in northern Chile and made the
case for Chile as a site for renewable energy pilot projects given
its natural resource endowments (solar, wind, tidal). Tokman's
unwavering message has been that the GOC is eager to engage with the
new administration and Chile is ready, willing, and uniquely
positioned because of its resources to participate in the
development of renewable energy technologies and to play an active
role hemispherically on renewables and energy efficiency. End
summary.

Chile Plans Renewable Energy Center
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2. (SBU) Prior to his recent trip to Washington to meet with Energy
Secretary Chu, Energy Minister Tokman met with Ambassador Simons and
ESTHoff on February 17. Tokman outlined Chile's plans to develop a
renewable energy center. The center would act as an information
clearing house, provide the status of developing technologies in
various countries (e.g., microalgae in the U.S.),as well as help
researchers to network and avoid duplicating efforts. Another
function would be to share best practices/policies to promote
renewables. The center would also provide information on Chile's
natural resources (e.g., wind mapping) to encourage foreign
investment. According to Tokman, the center would be public policy
oriented, linking universities, industry consortiums, and
businesses. Tokman also mentioned that Chile's economic development
agency, CORFO, is launching a financial instrument to provide loan
guarantees and research subsidies for renewable projects.


3. (SBU) Tokman said Chile anticipates coordinating the proposed
center's activities with the new International Renewable Energy
Agency (IRENA). He was extremely eager to discuss Chile's concept
for a renewable energy center with U.S. officials to see how it
might be used in connection with the Obama Administration's proposed
initiative on an Energy Partnership for the Americas. Tokman also
asked about resources for alternative energy in the new U.S.
stimulus bill, and whether they would benefit Lawrence Berkeley
National Lab, with whom the GOC has developed a strong relationship.
Overall, Tokman expressed his keen interest in establishing strong
relations with the new U.S. administration and exploring ways that
Chile can play a more active role in the region on renewables and
energy efficiency.

Readout of Washington Meetings: Very Successful
-------------- ---


4. (SBU) Upon his return from Washington, Tokman reviewed his very
positive meetings with Energy Secretary Chu and State Department
officials. In his meetings, he said he outlined Chile's exposure to
energy shortages and price volatility risks due to its reliance on
hydropower and imported natural gas and petroleum. He stressed that
implementing energy efficiency measures reduced Chile's demand for
electricity in 2008 compared to the prior year. He also indicated
Chile's continued interest in collaborating with the U.S. on energy
efficiency and renewable energy, offering Chile as an excellent site
for any DOE pilot projects.


5. (SBU) Tokman further emphasized Chile's desire to be a strong
partner under the proposed Energy Partnership of the Americas. He
expressed hope that the U.S. would join IRENA, signed into existence
in January 2009. In addition, Tokman highlighted the
Chile-California Partnership and Chile's strong interest in
continued work with Lawrence Berkeley National Laboratory.

Energy Minister Requests Chile-U.S. Partnership on Clean Energy
-------------- --------------


6. (SBU) Following the meeting with Secretary Chu, Tokman said he
met with WHA PDAS Craig Kelly, WHA/EPSC Director Matt Rooney, and
WHA/EPSC Energy Officer Faith Corneille. Tokman opened the meeting
by saying he wanted to discuss concrete ideas on renewable energy.
He suggested that, as a developing country with a large economy
using clean energy technology to grow, Chile could be a good U.S.

partner and an example to the region.


7. (SBU) During the meeting, Tokman asked for USG support on the
renewable energy center, including liaisons from U.S. labs to
"transfer knowledge," to inform public policy and project
development. He envisions the center as initially focusing on
Chile, while drawing on global expertise. Tokman was open to
inviting other countries from the region to participate at a later
date. He said Chile has funding for the center. In a separate
conversation with ESTHoff, CNE's Deputy Director of International
Affairs Corissa Petra emphasized the high priority placed on this
initiative by revealing that planning for the center will be
overseen by a member of President Bachelet's cabinet.


8. (SBU) In the course of the meeting, Tokman renewed his November
2008 request (reftel) for the U.S. to match $15 million in GOC
subsidies for the capital costs of a solar generation plant in
northern Chile. The GOC plans to offer the project via public
tender (reftel). In addition, he asked if U.S. companies would be
competing for the 10-15 megawatt solar project and underscored that
the GOC will award the project to the company that requires the
least amount of subsidies. EPSC noted that OPIC has renewable
energy funding available. Tokman solicited USG support in
developing pilot projects for tidal and ocean energy. He mentioned
that Chile is also seeking support from the United Kingdom in this
area.

Chile Has Resources and Political Will for Energy Partnership
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9. (SBU) COMMENT: Chile is eager to engage with the new
administration and is ready, willing, and uniquely positioned
because of its natural resources (wind, solar, geothermal, ocean
tides) to participate in the development of renewable energy
technologies. Moreover, Chile has the capacity to play an active
role in Latin America on renewables and energy efficiency, and would
make a good U.S. partner on these issues. Post encourages
Washington to include Chile when developing the policy, mentioned by
both President Obama and Secretary Clinton, on an Energy Partnership
for the Americas. End comment.


11. (U) This cable was cleared by Department of Energy.
SIMONS