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Viewing cable 08SANTIAGO1087, CHILEAN ENERGY MINISTER TOKMAN OUTLINES SOLAR

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Reference ID Created Released Classification Origin
08SANTIAGO1087 2008-12-11 20:09 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Santiago
VZCZCXYZ0000
OO RUEHWEB

DE RUEHSG #1087 3462009
ZNR UUUUU ZZH
O 112009Z DEC 08
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4100
RHMCSUU/DEPT OF ENERGY WASHINGTON DC IMMEDIATE
INFO RUCNMER/MERCOSUR COLLECTIVE
UNCLAS SANTIAGO 001087 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/BSC AND EEB/ESC/IEC 
 
E.O. 12958: N/A 
TAGS: ENRG KNNP KGHG SENV TRGY CI ECON PGOV
SUBJECT: CHILEAN ENERGY MINISTER TOKMAN OUTLINES SOLAR 
ENERGY PILOT PROJECT 
 
1. (SBU) Summary: In a November 10 meeting with the 
Ambassador, Energy Minister Marcelo Tokman reviewed Chile's 
progress in moving ahead on renewable energy projects. 
Recognizing the difficulty of launching any commercial-sized 
solar generation project without government incentive, Tokman 
indicated that he had secured up to $15 million in direct 
budgetary support to subsidize the capital costs of a 10 
megawatt solar generation plant.  The GOC planned to offer 
those subsidies in a public tender in the near future. 
Tokman said he believed that with the capital cost reduction, 
it would be possible to attract companies to bid, drawing on 
both solar photo voltage and concentrating solar power 
technologies.  He invited U.S. firms to bid on the project, 
noting the three firms that Chilean authorities (accompanied 
by the Ambassador) had visited in their June trip to 
California. End Summary. 
 
Germany To Support Renewable Energy Sector 
------------------------------------------ 
 
2. (SBU) In order to demonstrate other countries' support for 
Chile's energy sector, Tokman shared with the Ambassador 
details on Germany's current contribution to renewable energy 
projects in Chile.  From 2004 through 2012, the German 
Government plans to contribute a total of 95 million Euros to 
the GOC to fund advances in the sector: 7 million Euros in 
technical assistance, 8 million Euros in grants, and 80 
million Euros in lines of credit managed by CORFO. 
 
A Call For Help 
--------------- 
 
3. (SBU) Tokman highlighted this initiative as an excellent 
opportunity for the U.S. to work with Chile in the solar 
energy sector.  The Minister encouraged the USG to support 
the effort financially by fully matching the GOC's award with 
U.S. funds to increase the overall amount of the subsidy and 
thus strengthen the impact of the project.  Tokman regarded 
this endeavor as a way the U.S. can also help reduce 
greenhouse gas emissions in Chile.  He characterized the 
proposal as an example for the international community that 
showed progress in the energy sector is feasible through the 
use of renewable resources. 
 
4. (SBU) The Ambassador expressed interest in the proposal. 
 
Confidence in Hydroelectric Generation 
-------------------------------------- 
 
5. (SBU) Tokman expressed optimism over the future of the 
hydropower project under consideration for Region XI's Baker 
and Pascua Rivers.  HydroAysen, an energy company, plans to 
build five major dams in the area which have an estimated 
price tag of $3.2 billion and would add approximately 2,750 
MW of electricity to Chile.  Tokman admitted that the project 
could not be completed during the Bachelet Administration. 
He expected significant opposition to the project due to the 
size and environmental implications of the endeavor. 
 
One Step Closer to Nuclear Energy 
--------------------------------- 
 
6. (SBU) The Ambassador raised the recent nuclear energy 
studies requested by the GOC.  The Chilean National Energy 
Commission is in the process of selecting an international 
corporation to investigate the feasibility of developing 
nuclear energy in Chile.  Tokman listed four finalists for 
the GOC's three proposed projects but did not indicate a 
preference among their proposals.  (NOTE: Subsequent to the 
Ambassador's meeting with Tokman, the GOC announced its 
selection: Amec-Cade, (British-Chilean), Stuk (Finnish), and 
Technopark-Intermash (Chilean-Russian).)  The Ambassador 
noted the project's scope and the study's guidelines had 
perhaps been too narrow to raise much interest among American 
firms. 
SIMONS