VZCZCXYZ0002
OO RUEHWEB

DE RUEHSG #0358/01 1061603
ZNR UUUUU ZZH
O 161603Z APR 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4801
RHMCSUU/DEPT OF ENERGY WASHINGTON DC IMMEDIATE
INFO RUCNMER/MERCOSUR COLLECTIVE IMMEDIATE
RUEHPE/AMEMBASSY LIMA 6131
RUEHLP/AMEMBASSY LA PAZ APR BRASILIA 0855
RUEHMN/AMEMBASSY MONTEVIDEO 4358
RUEHAC/AMEMBASSY ASUNCION 3926
RUEHCV/AMEMBASSY CARACAS 2049
RUEHQT/AMEMBASSY QUITO 2310

UNCLAS SANTIAGO 000358 
 
STATE FOR WHA/BSC, WHA/EPSC AND EEB/ESC/IEC 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON ENRG KNNP SENV TRGY PGOV CI
SUBJECT:  CHILE HOSTS APEC ENERGY EFFICIENCY AND INTERNATIONAL 
ENERGY AGENCY IN-DEPTH ENERGY SECTOR REVIEWS 
 
¶1. (SBU) SUMMARY:  Chile recently hosted two energy-related visits 
by international organizations engaged in comprehensive reviews of 
the country's energy sector.  The Asia Pacific Economic Cooperation 
forum (APEC) energy efficiency peer review took place March 16-20 
and the results will be presented during the APEC Energy Working 
Group in Santiago at the end of April.  The International Energy 
Agency (IEA) has been conducting an in-depth review of Chile's 
energy sector and policies since October 2008.  The IAE expert team 
visited Santiago March 30-April 3.  The IAE report will be shared 
informally with the GOC in June and formally presented by the IEA's 
executive director in October 2009.  The Embassy has promoted both 
reviews and believes they will be used by Chile's next president to 
balance Chile's energy needs and sustainable growth objectives.  End 
summary. 
 
APEC Energy Efficiency Peer Review of Chile 
------------------------------------------- 
 
¶2. (U) With the strong support of the Embassy and the State 
Department APEC coordinator, Chile was one of the first countries 
that submitted to the APEC energy efficiency peer review process. 
As part of the review, an international panel of eight experts 
visited Chile March 16-20.  The team was led by David Crossley 
(Australia, General Manager Energy Futures Australia Ltd) and 
included:  Kenji Kobayashi (Japan, Director of the Asia Pacific 
Energy Research Centre (APERC)), Tran Thanh Lien (Vietnam, 
Researcher, APERC), Faust Bovelander (New Zealand, Energy Efficiency 
and Conservation Authority), Yie-Zu Robert Hu (Taiwan, Researcher, 
Industrial Technology Research Institute of Taiwan), Phil Coleman 
(U.S., Researcher, Environmental Energy Technologies Division, 
Lawrence Berkeley National Laboratory), Wong Yew Wah (Singapore, 
Professor, Nanyang Technological University), and Nigel Jollands 
(New Zealand, Researcher, International Energy Agency). 
 
¶3. (U) The Ambassador hosted a breakfast for the entire team March 
18 and several Chilean officials, including Ignacio Fernandez, 
International Affairs Coordinator for the National Energy Efficiency 
Program (PPEE) and Corissa Petro, Deputy Director for International 
Affairs at Chile's National Energy Commission (CNE), along with 
post's ESTH officer and Economic Specialist. 
 
¶4. (U) During their visit, the APEC team interviewed officials 
responsible for public policy development and energy efficiency 
programs, as well as in-country experts, scientists, energy 
companies and industry representatives.  The results of the study 
will be presented during the 37th meeting of the APEC Energy Working 
Group in Santiago, Chile, at the end of April. 
 
Chile Has a Strategy, Implementation is Key 
------------------------------------------- 
 
¶5.  (SBU) During the March 18 breakfast, the APEC team discussed 
their impressions of Chile.  Jollands noted that Chile has a 
National Energy Efficiency Strategy, but questioned how the strategy 
would be implemented and whether Chile had the capacity to do so. 
Bovelander explained that the country can choose to invest where it 
will have the most impact, or where it is most visible.  He added 
that even if there is "green washing" (i.e., companies that use 
public relations tactics to talk about how great they are 
environmentally and socially, but behind the scenes may not really 
be doing much), it can still get people and industry involved with 
energy efficiency efforts.  The Ambassador cited the example of 
Wal-Mart, which recently entered the Chilean market and indicated it 
will take a "green" approach in its stores (in line with existing 
corporate efforts).  He said Wal-Mart already has ideas for 
improving energy efficiency, e.g., adding skylights to buildings. 
 
¶6. (SBU) Fernandez cited CNE/PPEE's campaigns to distribute compact 
fluorescent light bulbs and increase awareness of energy efficiency. 
 He also explained Chile's efforts to start implementing 
fuel-efficiency ratings for cars.  Bovelander commented that things 
can be done at the margins, but emphasized the need to implement a 
comprehensive long-term strategy. 
 
¶7. (SBU) Several experts noted that the costs of solar heating 
systems will decrease as the country develops more capacity for 
installation and maintenance of such systems.  Bovelander described 
it as a question of economies of scale and suggested that government 
assistance was needed to speed up the process. 
 
IEA Reviews Chile's Energy Sector 
--------------------------------- 
 
¶8. (U) As part of the IEA's in-depth review of Chile's energy sector 
and policies, a team of international energy experts was in Santiago 
March 30-April 3 to meet with public officials and private sector 
representatives.  The team, led by Hartmut Schneider (Germany, 
Federal Ministry of Economics and Technology) and Ghislaine Kieffer 
(IEA Secretariat) included:  Isabel Cabrita (Portugal, National 
Institute for Energy and Industrial Technology), Cristobal Burgos 
(European Commission, Directorate General for Energy and Transport), 
Luis Alonso Mijares (Spain, Ministry of Industry, Tourism and 
Commerce), Faith Corneille (U.S., Department of State), Stephen 
Powell (expert consultant), Chris Zegras (U.S., Massachusetts 
Institute of Technology), as well as, Paul Frankl, Teresa Malyshev, 
and Yo Osumi from the IEA Secretariat. 
 
¶9. (U) The concept of an IEA review process for Chile arose from 
initial conversations between the Ambassador and Energy Minister 
Tokman in January 2008, and was further developed during the visit 
of former IEA Deputy Executive Director Ramsay in April 2008.  The 
formal process began in October 2008 with the development of a 
questionnaire that was sent to Chilean stakeholders.  After the 
March visit, the team drafted the report, which will undergo an 
internal IEA process before it is shared with the GOC in June.  The 
report will then be refined and published before being formally 
presented by the IEA's executive director in October 2009. 
 
¶10. (U) The IAE's efforts will be coordinated with other activities, 
including the "Technology for the Future" Conference in Santiago in 
October 2008, the IAE Energy Efficiency Indicators Conference in 
January 2009, and the APEC peer review on energy efficiency.  Based 
on meetings with the Minister of Energy and CNE, team members 
expressed hope that the IEA review will provide a road map to the 
country's next presidential  administration for balancing Chile's 
economic growth, energy security, and environment objectives over 
the long-term. 
 
COMMENT:  Chile Looks to Improve its Energy Security 
--------------------------------------------- ------- 
 
¶11. (SBU) Over the past year, with the strong support of the 
Embassy, Chile has begun to look beyond its borders for advice on 
how to improve its energy situation.  In addition to the two 
international reviews, CNE brought Claude Mandil, former IEA 
Executive Director, to Chile last month for guidance on the IEA 
membership process and its national energy strategy.  Whatever the 
outcome of December's presidential elections, post is optimistic 
that Chile will remain focused on improving its long-term energy 
strategy. 
SIMONS