VZCZCXYZ0000
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 
 
¶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