CHILE

(June 2010)

1. GENERAL INFORMATION

1.1. Country overview

The Republic of Chile (Spanish: República de Chile) is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far south. With Ecuador, it is one of two countries in South America which do not border Brazil. The Pacific coastline of Chile is 6,435 kilometres. Chilean territory includes the Pacific islands of Juan Fernández, Salas y Gómez, Desventuradas and Easter Island, 200 miles of territorial sea and the corresponding continental shelf. Chile claims about 1,250,000 square kilometres (480,000 sq mi) of Antarctica, although all claims are suspended under the Antarctic Treaty.

FIGURE 1. Map of Chile

Source: National Statistics Institute of Chile

1.1.1. Governmental System

Chile is a Republic ruled by a democratic government and it is characterized by the clear demarcation and independence of the three branches of Government.

The current constitution dates from 1980. The politics of Chile takes place in a framework of a presidential representative democratic republic, whereby the President of Chile is both head of state and head of government, and of a multi-party system.

Executive power is exercised by the president. Legislative power is vested in both the government and the two chambers of the National Congress. The Judiciary is independent of the executive and the legislature.

The bicameral National Congress (http://www.congreso.cl/) consists of the Senate (http://www.senado.cl/) and the Chamber of Deputies (http://www.camara.cl/). The Senate is made up of 38 members elected from regions or subregions. Senators serve eight-year terms. The Chamber of Deputies has 120 members, who are elected by popular vote to serve four-year terms.

According to current legislation, Chile is divided into 15 regions, each headed by an intendant appointed by the president. The regions are further divided into provinces, with provincial governors appointed by the president. The provinces are divided into communes which are administered by municipalities, each with its own mayor and council elected for four year terms. Regions are designated by a name and a Roman numeral, assigned from north to south. The only exception is the Santiago Metropolitan Region which is designated RM (Región Metropolitana). Two new regions were created in 2006 and became operative in October 2007; Los Ríos in the south (Region XIV), and Arica y Parinacota in the north (Region XV). The numbering scheme skipped Region XIII.

Key Name Spanish XV Arica and Parinacota Región de Arica y Parinacota I Tarapacá Región de Tarapacá II Antofagasta Región de Antofagasta III Atacama Región de Atacama IV Coquimbo Región de Coquimbo V Valparaíso Región de Valparaíso VI O'Higgins Región del Libertador General Bernardo O'Higgins VII Maule Región del Maule VIII Biobío Región del Biobío IX Araucanía Región de la Araucanía XIV Los Ríos Región de Los Ríos X Los Lagos Región de Los Lagos XI Aisén Región Aisén del General Carlos Ibáñez del Campo XII Magallanes Región de Magallanes y de la Antártica Chilena RM Santiago Región Metropolitana de Santiago

FIGURE 2. Regions of Chile

1.1.2. Geography and Climate

Geography

A long and narrow coastal Southern Cone country on the west side of the Andes Mountains, Chile stretches over 4,630 kilometres (2,880 mi) north to south, but only 430 kilometers (265 mi) at its widest point east to west. This encompasses a remarkable variety of landscapes. It contains 756,950 square kilometres (292,260 sq mi) of land area. Chile is situated within the Pacific Ring of Fire – an area where large numbers of earthquakes and volcanic eruptions occur in the basin of the Pacific Ocean. In a 40,000 km (25,000 mi) horseshoe shape, the Pacific Ring of Fire is associated with a nearly continuous series of oceanic trenches, volcanic arcs, and volcanic belts and/or plate movements. The Pacific Ring of Fire has 452 volcanoes and is home to over 75% of the world's active and dormant volcanoes. It is sometimes called the circum-Pacific belt or the circum-Pacific seismic belt.

The northern Atacama Desert contains great mineral wealth, primarily copper and nitrates. The relatively small Central Valley, which includes Santiago, dominates the country in terms of population and agricultural resources. This area also is the historical center from which Chile expanded in the late nineteenth century, when it integrated the northern and southern regions. Southern Chile is rich in forests, grazing lands, and features a string of volcanoes and lakes. The southern coast is a labyrinth of fjords, inlets, canals, twisting peninsulas, and islands. The Andes Mountains are located on the eastern border. Chile is the longest north-south country in the world.

Chile controls Easter Island and Salas y Gómez Island, the easternmost islands of Polynesia, which it incorporated to its territory in 1888, and Robinson Crusoe Island, more than 600 kilometers (370 mi) from the mainland, in the Juan Fernández Islands. Today, Easter Island is a province of Chile. The small islands of Salas y Gómez, San Ambrosio and San Félix, are also controlled by Chile, but only inhabited temporarily by local fishermen. These islands are notable because they extend Chile's claim to territorial waters out from its coast into the Pacific.

Climate

The climate of Chile comprises a wide range of weather conditions across a large geographic scale, extending across 38 degrees in latitude, making generalizations difficult. Chile within its borders hosts at least seven major climatic subtypes, ranging from desert in the north, to alpine tundra and glaciers in the east and south east, humid subtropical in Easter Island, Oceanic in the south and Mediterranean climate in central Chile. There are four seasons in most of the country: summer (December to February), autumn (March to May), winter (June to August), and spring (September to November).

On a synoptic scale the most important factors that controls the climate in Chile are the Pacific Anticyclone, the southern circumpolar low pressure area, the cold Humboldt current, the Chilean Coast Range and the Andes Mountains. Despite Chile's narrowness, some interior regions may experience wide temperature oscillations and cities such as San Pedro de Atacama, may even experience a continental climate. In the extreme northeast and southeast the border of Chile extends beyond the Andes into the Altiplano and the Patagonian plains, giving these regions climate patterns similar to those in Bolivia and Argentina respectively.

Climatic Diversity

FIGURE 3. Climate Characteristics

The most important climate variations are mainly caused by effect of latitude and height, latitude affecting it the most. This is due to the significant development that the country presents regarding the parallels, because it extends between 17º 30’ and 56º 30’ south latitude in South America and up to 90º south latitude, considering the Antarctic Territory. In other words, it covers climates such as tropical desert, subtropical, mild and polar.

Latitude, relief and oceanic influence are the fundamental factors of climate. Considering the latitude extension, there should be a great temperature difference between both territory extremes. However, due to moderating influence of the ocean, to the benefit action of the cold Humboldt Current, and to the air mass movements, there are no big temperature differences among the north, center and south of the territory, except for Antarctica and high Andes hilltops.

1.1.3. Population

Chile has an estimated population of 16,928,873 inhabitants [1], of which 87% live in urban areas (45% in Metropolitan Region), with an average density of 22.39 inhab/km2. Literacy rate is over 95% and the average life expectancy is 78.5 years. Over the last few decades, the population has been growing at decreasing rates, a similar trend to the one occurring in medium-high income economies, and slightly lower than other Latin American economies. Social indicators such as mortality and infant nutrition show that Chile stands out among its regional peers of similar income, having results rather alike to those ones presented by high income economies [2]. The poverty level still remains a challenge for economic and government policies. However, great advances have been accomplished in this matter, which has allowed Chile to be placed in the lower poverty level of Latin America [3].

TABLE 2: GROSS DOMESTIC PRODUCT							Average Annual Growth Rate (%)
	1970	1980	1990	2000	2005	2008	2000 - 2008
GDP (Millions of Current US$)	8 981.1	27 572.3	31 558.9	75 210.5	118 249.6	169 458.0	10.5
GDP (Millions of Constant 2000 US$)	21 083.6	27 950.0	40 455.6	75 210.5	92 415.2	104 381.2	4.2
GDP Per Capita (PPP* US$/Capita)	-	2 824.8	4 809.1	9 501.5	12 240.5	14 591.8	5.5
GDP Per Capita (Current US$/Capita)	938.0	2 465.9	2 392.5	4 877.9	7 255.7	10 084.4	9.3

1.2. Energy Information

1.2.1. Estimated available energy

	TABLE 3: ESTIMATED AVAILABLE ENERGY RESOURCES
	Fossil Fuels			Nuclear	Renewables
	Solid	Liquid	Gas	Uraniuma	Hydrob	Other Renewable
Total Amount in Specific Units*	700.00	1.13	16.75	1 034.00	0.02	0.012***
Total Amount in Exajoules [EJ]	13.18	0.05	0.65	0.565**	6.30	3.78

1.2.2. Energy Statistics

TABLE 4: ENERGY STATISTICS [EJ]							Average Annual Growth Rate (%)
ENERGY CONSUMPTION**	1970	1980	1990	2000	2005	2008	2000 - 2008
TOTAL	0.37	0.42	0.60	1.05	1.23	1.32	2.87
- Solids	0.06	0.05	0.11	0.13	0.13	0.20	4.87
- Liquids	0.02	0.22	0.29	0.49	0.54	0.74	5.37
- Gases	0.03	0.04	0.06	0.19	0.26	0.08	-9.63
- Nuclear	-	-	-	-	-	-	-
- Hydro	0.02	0.03	0.03	0.07	0.09	0.09	3.06
- Other Renewables	0.06	0.07	0.11	0.18	0.19	0.21	2.33
ENERGY PRODUCTION	1970	1980	1990	2000	2005	2008	2000 - 2008
TOTAL	0.31	0.30	0.34	0.37	0.40	0.40	1.15
- Solids***	0.05	0.03	0.06	0.01	0.01	0.01	0.96
- Liquids	0.08	0.07	0.04	0.01	0.01	0.01	-8.99
- Gases	0.11	0.11	0.09	0.10	0.09	0.08	-1.79
- Nuclear	-	-	-	-	-	-	-
- Hydro	0.02	0.03	0.03	0.07	0.10	0.09	2.78
- Other Renewables	0.06	0.07	0.11	0.18	0.19	0.21	2.33
NET IMPORT (IMP - EXP)	1970	1980	1990	2000	2005	2008	2000 - 2008
TOTAL	0.14	0.18	0.29	0.72	0.84	0.94	3.39

These scenarios present a clear example of how the energy sector can have a transversal effect on the national economy. Bearing in mind these challenges, the government has implemented a series of measures designed to promote the development of NCRE[1] and energy efficiency[2]. These measures not only address global environmental problems, but are also in line with the explicit objectives of the government to increase energy security by diversifying sources, to reduce external dependence, to increase the sustainability of the energy mix and to increase equal access to energy.

1.3. The electricity system

1.3.1. Electricity policy and decision making process

Chilean installed electricity capacity is around 13,000 MW and its total gross electricity generation exceeds 55,000 GWh (2008 figures). Its principal generation technologies are hydroelectric, coal-fired thermal power plants and “dual” (natural gas and diesel) thermal power plants. Chile also relies on new renewable energy sources, although on a much smaller scale. The principal electricity systems are the Central Interconnected System (Sistema Interconectado Central, or SIC) and the Far North Interconnected System (Sistema Interconectado del Norte Grande, or SING) with respective installed capacities of 9,385 MW and 3,602 MW. Two other systems exist, namely the Aysén System (Sistema de Aysén, 47.8 MW) and the Magallanes System (Sistema de Magallanes, 79.6 MW).

The electricity generation matrix has evolved considerably over the last decade. During 1996 and 1997, average electricity generation was 60% hydraulic, 35% coal-based and 5% from oil and biomass sources. The importance of hydroelectricity to Chile's generation creates an element of risk due to variability in hydro energy availability. Hydro generation data from the past few decades illustrates that hydro generation capacity can be three times greater in a rainy season (around 30,000 GWh) than during a dry season (around 10,000 GWh), based on current installed capacity.

FIGURE 4. SIC & SING Capacity (December 2008)

Source: [13]

From 1998 to 2004, natural gas replaced coal-based generation (with natural gas-based generation peaking in 2001). Beginning in 2005, due to cuts in natural gas supplies from Argentina, the situation began to reverse and coal-based generation increased. Nevertheless, natural gas generation has not been completely eliminated, as significant time was required to build new power plants.

FIGURE 5. SIC + SING Electricity Generation

Source: [13]

To compensate for gas restrictions and dry years, generation with petroleum derivatives, particularly diesel, was escalated. This was made possible by investments to “dualize” plants originally designed to operate with natural gas, efforts by fuel distributors to address logistical issues and the installation of turbines and diesel motors. A 2008 law establishing the immediate return of diesel taxes also counteracted restrictions [16].

Nuclear Scenario:

The potential inclusion of nuclear electricity in the national energy mix brings with it a series of challenges which are analyzed in detail later in this report. This chapter merely assesses the economic and environmental advantages of introducing the nuclear option.

According to development projections for Chile, the SIC and SING systems (which are not connected at present) are expected to have a combined installed capacity in excess of 30,000 MW by 2030 and close to 39,000 MW in 2035. This is based on the IAEA recommendation that a nuclear reactor should not exceed 10% of the capacity of installed electricity generation[3]. For the purposes of this analysis, 1,100 MW uranium-based models were used because these are the most common at the present time[4].

The introduction of nuclear energy into the mix would be economically beneficial because it would enable Chile to (i) reduce generation costs by replacing coal-fired generation and (ii) further diversify the mix, thus strengthening the security of supply and stabilizing costs.

The key result from the models is that nuclear electricity generation is part of the ideal mix for Chile. Although the average current cost of nuclear generation is already more competitive than that of other forms of thermal generation[5], the model only recommends its incorporation from 2024 onwards. This apparent paradox is explained by two factors.

First, the model was restricted so that nuclear generation would only begin after 2020, because the country will not have the conditions necessary for safe implementation of an NPP prior to this date. Second, during the first years of the decade of 2020, the model projects that Chile’s electricity needs will be fully met by the inclusion in the matrix of renewable energy projects (mainly conventional hydroelectric, but also some small hydro, geothermal and biomass projects). As the average cost of generation from these sources is lower than that of nuclear energy, the optimal time to bring the first plant on-line will occur when the expansion of renewable energy generation (mainly hydro) is insufficient to keep pace with increasing demand. This may make it necessary to bring coal back into the energy mix by 2024. Between 2024 and 2035, five 1,100 MW nuclear plants would come into operation[6]. During this period, all the additional requirements for installed capacity would be satisfied with investment in nuclear energy and renewable sources.

1.3.2. Structure of electric power sector

In recent decades, many countries around the globe including Chile (since 1982) have opted for economic models, in which the private sector plays a central role in the provision of basic services, while the government carries out a primarily regulatory role.

The main policy strategy for institutional matters is described below:

• The powers related to the design of policies, legal and regulatory provisions, plans and programs become the responsibility of the Ministry of Energy, which shall govern the country’s energy sector.

• The CNE (National Energy Commission) is a decentralized and independent public service in charge of technical and economic regulation of the energy sector, by means of analyzing prices, tariffs and determining the technical and quality standards that companies producing, generating, transporting and distributing energy must comply with, ensuring thus that a secure, adequate energy service of sufficient quality is provided in the most economical way.

• Coordination and integration of Chile’s regions. The Ministry’s highest authority shall be the Minister of Energy. Internal administration and coordination of public energy services shall be the responsibility of the Undersecretary of Energy. At the regional level, an institutional presence is lacking to coordinate and implement actions in the energy sector. Regional Energy Ministry Secretariats are hence proposed.

• Coordination of environmental and energy policies. The Minister of Energy shall sit on the Management Committee of the National Environmental Commission and the Regional Energy Ministry Secretaries shall be members of the Regional Environmental Commissions. This arrangement will enable the formal inclusion of energy sector perspectives through mechanisms that function within the current environmental institutional structure.

• Coherence in the actions of energy sector public services. This sector is organized according to the structure laid out in the Organic Framework Law on Public Administration, under which definitions of policies, plans and standards in the sector are the responsibility of the Ministry of Energy. Thus, this Ministry shall oversee all energy sector public services. The following services shall report to the President of the Republic through the Ministry of Energy: the National Energy Commission, the Superintendence of Electricity and Fuels, and the Chilean Nuclear Energy Commission.

• The Chilean Nuclear Energy Commission has the missions to assist the Government in all affairs related to nuclear energy dealing with problems related to the production, purchase, transfer, transportation and the peaceful uses of atomic energy and of the fertile, fissionable and radioactive material. (www.cchen.cl)

• The SEC (Superintendence of the Electricity and Fuels) function is to supervise and control the fulfillment of the legal framework provisions for the generation, production, transportation, distribution and storage of liquid fuels, gas and electricity according to the technical quality framework applied to the customers (users) and to the operations and use of the energetic resources, may not be a risk to people or things. (Law 18410 Fuel and Electricity Superintendence – http://www.sec.cl/ )

The Chilean electricity grid has four separate systems. .These are distributed geographically as Far North Interconnected System (known by its Spanish initials SING) in the north, Central Interconnected System (Spanish initials SIC) in the central and southern zone of the country, Aysen Electrical System, and Magallanes Electrical System in the extreme south of Chile.

The following is a brief explanation of the two main electrical systems.

• SING: The Far North Interconnected System extends from Tarapacá to Antofagasta, First and Second Regions of Chile respectively, and it covers an area of 185,142 km2 which is equivalent to 24.5% of the continental territory, serving 6.1% of national population, according to 2002 census.

• SIC: The Central Interconnected System of the Republic of Chile is constituted by transmission systems and generation plants which operate interconnected from Rada de Paposo (Paposo Roadsted) in the north (Second Region of the country) to Isla Grande de Chiloé (Big Island of Chiloé) in the south (Tenth Region.) This system is the largest of the four electrical systems providing energy to Chile. As of December 31st, 2008, it has reached a power of 9,910.7 MW, and its supply coverage reached near 92.3% of population.

The electrical systems SIC and SING have independent operators called the Economic Load Dispatch Center (CDEC), denoted CDEC-SIC and CDEC-SING respectively. These CDEC’s have based their operation on the regulatory framework and the electrical service quality standards, to ensure a correct operation of the system in terms of voltage, frequency, and dispatch of generating units at the lowest marginal cost available in the spot market.

The Electricity Sector regulatory model (1982) is pioneer in the world in terms of market liberalization, allowing industry development. This model assumes that investments develop based on private initiative in response to economic signals provided by the market, and the regulations established by the authority. Reference prices for the sector are fixed twice a year. Currently, the Minister of Energy sets the tariff decrees for different segments, and the expansion decrees, through the National Energy Commission (CNE.) On the other hand, an Expert Panel resolves the disagreements among electricity sector companies and between them and the electricity regulator (CNE.)

1.3.3. Main indicators

TABLE 5: ELECTRICITY PRODUCTION, CONSUMPTION & CAPACITY					Average Annual Growth Rate (%)
Capacity of Electrical Plants [GWe]	1990	2000	2005	2008	2000 - 2008
TOTAL	9.46	19.13	23.14	31.31	3.92
- Thermal	1.42	5.62	7.23	8.17	4.80
- Hydro	2.36	4.04	4.72	4.94	2.54
- Nuclear	-	-	-	-	-
- Wind	-	-	0.01	0.02	< 0.01
Electricity Production (TWh)	1990	2000	2005	2008	2000 - 2008
TOTAL**	18.37	38.01	49.07	55.12	4.75
- Thermal	9.46	19.13	23.14	31.31	6.35
- Hydro	8.92	18.88	25.92	23.77	2.92
- Nuclear	-	-	-	-	-
- Wind	-	-	0.01	0.04	0.50
Total Electricity Consumption (TWh)	1990	2000	2005	2008	2000 - 2008
TOTAL	15.43	36.60	45.28	50.87	4.20

TABLE 6: Energy Related Ratios
	1970	1980	1990	2000	2005	2008
Energy Consumption Per Capita (GJ/Capita)	38.8	37.5	45.5	68.5	75.5	78.9
Electricity Consumption Per Capita (kWh/Capita)	-	-	1 171.0	2 376.0	2 783.4	3 043.3
Electricity Production/Energy Production (%)	-	-	19.5	37.1	44.5	49.1
Nuclear/Total Electricity (%)	-	-	-	-	-	-
Ratio of External Dependency (%)**	37.2	42.4	47.6	68.3	68.5	71.1

2. NUCLEAR POWER SITUATION

2.1. Historical development and current organizational structure

2.1.1. Overview

In March 2007, President Michelle Bachelet established a working group (also known as the Zanelli Commission) to assess whether nuclear energy would be a possibility for Chile. The group consisted of ten independent professionals from academia, the business sector and government, with diverse background, and no prior position regarding nuclear energy or representing any interest group. The main conclusions of the group were that there are no reasons to discard the nuclear option for Chile but before making any decision, further studies need to be performed.

By the end of 2007, the president charged the Minister of Energy to continue the work of the Zanelli Commission, making all advances needed to enable the country to make a decision on whether to develop the national infrastructure required to produce nuclear power.

In 2008 the Minister of Energy established the Nuclear Advisory Group (Grupo Consultivo Nuclear, or GCN) to deliver the mandate, which has directed a series of activities to determine whether it is advisable for Chile to adopt a Nuclear Power Program (NPP). The GCN has the permanent support of a work team.

During 2008 four studies were awarded through international public bidding and completed the same year. In 2009 four more studies were developed following the same process.

In December 2009 an IAEA Verification Mission made up of four experts reviewed the self-assessment exercise performed so far. The purpose was to determine if Chile was working in the right direction and to provide feedback to prepare for an INIR Mission which will visit the country in late 2010. The Verification Mission sent by the IAEA concluded that the self-assessment exercise was complete, well-prepared and complies with IAEA recommendations.

In March 2010 the Nuclear Advisory Group (GCN) issued a report for the President summarizing the work performed so far before the change of the government. The new government has expressed its willingness to continue the self-assessment process in close cooperation with the IAEA.

2.1.2. Current organizational chart(s)

No official organization has yet been nominated to address the issues of nuclear infrastructure.

2.2. Nuclear power plants: Overview

Not applicable

2.3. Future development of Nuclear Power

2.3.1. Nuclear power development strategy

Main strategic decisions:

The country has opted to analyze and assess the option of nuclear power in the light of IAEA recommendations. A series of activities has been implemented under this framework, including: scientific visits, visits by international experts and technical studies intended to clarify some key aspects of nuclear power generation in Chile.

Chile is in the first stage of the self-assessment process recommended by the IAEA, conducting all necessary feasibility studies on the nuclear power option. In regard to the decision that follows the final milestone for phase one ("the country is prepared to make an informed commitment regarding a nuclear power program"), a variation has been introduced that is more in line with Chile's current situation, which is to divide the corresponding decision into two stages. The essential decision that is required for phase two is to advance towards "closing the gaps;" secondly, the decision to open a tender process for the construction of the first nuclear power plant will come later. Chile will advance towards closing the gaps whether or not the decision to construct a nuclear power plant is taken.

It is also a matter of interest to introduce nuclear power as an “energy policy strategy” discussion, not as an exclusively “nuclear” discussion, and to conduct the process with a permanent concern about transparency, public information, and building international and national trust.

Technology:

For assessing the nuclear-electricity option for Chile only proven technologies are being considered, meaning technologies that have been applied to a significant number of reactors and that have impeccable records from operational and safety perspectives. A general recommendation for newcomers is that experimenting with new technologies is not appropriate. This decision will allow greater levels of safety to be objectively guaranteed for the reactors. Similarly, obtaining public support becomes extremely complex if the decision is made to implement technologies that have not been widely used.

Project framework (time scales, number of units, etc).

The tentative schedule for calling for bids could be after 2016. The plan is to introduce five 1,100 MW nuclear plants, which would come into operation between 2024 and 2035. This scenario considers that the independent electrical grids SIC and SING, will be interconnected by that time. If not, the first plant would begin operating in 2025 and during the period in question only three units would be brought into operation (all of them in the SIC).

Type of contract (Turnkey, Split Package, Multi Packages).

It is being considered to follow the turnkey approach. However, local participation is expected in some non-critical areas such as materials, civil works, services, engineering, design and management.

Application of nuclear powe (i.e. electricity, heat supply, water desalination, etc…)

Remains yet to be decided.

Policy for nuclear fuel cycle

Regarding the fuel cycle, a series of decisions have been taken in order to keep the analysis focused on the technical, economic and environmental viability of incorporating nuclear energy into the Chilean electricity grid. These decisions took both the international context and current Chilean electrical capacities into account. In summary, the country would choose the following options for its first nuclear plant:

(i) Open Fuel Cycle: Chile would abstain from both, sending fuel to be reprocessed and from developing its own capacity to do so. This decision takes into account the international community’s concerns regarding proliferation, as well as the fact that reprocessing is not economically viable for small-scale programs.

(ii) Fuel supply: Chile only has the ability to build fuel elements for research reactors but not yet for nuclear power reactor. Regarding the uranium mining, although uranium deposits have been found and there is a pilot project in place to extract uranium from copper mining waste, this remains a pilot project.

2.3.2. Project Management

A formal NEPIO has not been created, and it has been decided not to do so before having the formal decision to construct a NPP. However, there is a Nuclear Advisory Group and a working group with enough budget to work and contract studies.

The Nuclear Advisory Group has been lead by the Minister of Energy. This group was formed by former members of the Zanelli Commission and representatives from key governmental institutions, such as National Environmental Commission (CONAMA), Defense Ministry, National Energy Commission, Foreign Affairs Ministry and Chilean Nuclear Energy Commission (CCHEN), to lead the work and provide advice to the Minister.

There is also a working group formed by a team of the Chilean Nuclear Energy Commission (CCHEN) and two divisions from National Energy Commission (CNE). This team has been working with the Nuclear Advisory Group performing and contracting studies and providing technical support.

The CCHEN team is in charge of performing the self-assessment exercise proposed by the IAEA.

The team has a direct and clear coordination with the Minister through a Minister Adviser, with the clear and specific objectives to:

1. Produce an official document with the assessment results that has been presented before the change of government.

2. Involve public stakeholders in the assessment process.

3. Start a public debate about the role of NPP in our future electric grid avoiding extreme positions.

4. Ensure continuity of the process, thus minimizing the cost of the nuclear assessment process, even if the country’s administration changes.

A nuclear regulatory body exists in Chile; however, it is subordinated to CCHEN. This implies that it does not meet international requirements concerning the separation of the functions of promoting and controlling nuclear activity. Therefore, even if the country decides not to develop an NPP, it is necessary to create a nuclear regulatory body that is independent of CCHEN for the nuclear activities that are currently being carried out.

2.3.3. Project funding.

Several studies have been developed to define the project funding options. These studies have covered two key aspects of the financing plan. First, different models of owner/operator configurations have been studied. Related to this aspect, the roles of the government and the private sector have been studied too. As a second focus of development, the different financial risk of each alternative has been analyzed. Once the corresponding risks have been characterized, different strategies have been proposed, in order to reduce the risks mentioned before.

The most likely configuration, considering the local scenario, is joint funding between the private sector and the government. This model considers the initial development of the nuclear-electricity industry based on investment in and operation of a joint company that is owned by the State in partnership with private capital [18]. This type of configuration should provide political stability and support, helping to reduce the most important financial risk – changes in the political conditions.

2.3.4. Electric grid development

The self-assessment process currently being performed by the country for studying and analyzing the feasibility of the nuclear option, with the help of the International Atomic Energy Agency, has allowed the development of several studies aimed at identifying existing gaps in Chile in the 19 issues including the electric grid.

The electric grid analysis has been performed jointly between the National Energy Commission and the Chilean Nuclear Energy Commission, institutions developing projects of energy projections for the long term using IAEA models, elaborating studies related to the identification of the modifications needed by the electrical regulation, and elaborating an action plan regarding the additional studies to be performed in order to conduct an analysis of the connection of nuclear units to the grid in a reliable and stable manner.

An “Electrical Regulation” study was done in order to identify the barriers that the entry of nuclear power generation to the Chilean electrical market would face and analyze its implication on the market. The results of this first study showed that the electrical regulations need to be modified under the General Law of Electrical Services, Technical Regulation of Service Safety and Quality, Internal Rules for CDEC Operators, and Manuals for CDEC Procedures, integrating general safety aspects of the nuclear plants and a coordination between the Nuclear Regulator and the institutions in charge of operating the electrical system.

Some outstanding points proposed for modification are:

• Establishing a definitive character for the concession.

• Incorporating the relation between the CDEC operator and the nuclear regulator, in order to inspect and control a safe operation of the nuclear plant.

As an action plan developed in the self-assessment process in the country, especially in the Electric Grid issue, a series of matters that need to be analyzed and studied for the technical feasibility of the operation of a first commercial nuclear unit (possibly 1000 MWe) were identified. These studies include the dynamic analysis of the electric grids in the main electrical systems of the country (SIC and SING) incorporating the nuclear energy in both, a current and a future scenario, in order to assess stability of possible connection points.

Every four years the electrical market regulatory authority (CNE) presents a proposal to expand the trunk grid of the electrical system . This proposal is adopted in the sector‘s work plan and assessed by CDEC operators yearly, according to demand evolution and system capacity. In this context, there has been a proposal within the action plan of making a study of the grid expansion in the long term, in order to project the structure and topology that the grid shall have with connection of nuclear units.

2.3.5. Site Selection

At this time no potential sites have been identified for the location of nuclear power plants in Chile.

Studies were performed to assess the natural hazards such as earthquakes and surface faulting, tsunamis, flooding, geotechnical issues, and volcanism. Based on the results of those studies, the need for further information for future site studies was identified. The next step will consider: (i) identification of the selection criteria, which form the basis to search for potential sites and (ii) the collection of geological and seismic environmental baseline information at country level, in order to generate a representative database for future site-specific studies.

The selection of a site is going to be made only once the country has made the decision to launch the nuclear power program.

2.4. Organizations involved in construction of NPPs

Not applicable

2.5. Organizations involved in operation of NPPs

Not applicable

2.6. Organizations involved in decommissioning of NPPs

Not applicable

2.7. Fuel cycle including waste management

Chile has no nuclear power reactors; the government, however, based on identified local restrictions, has set out a series of strategic definitions and guidelines in case of undertaking a nuclear power program. Such guidelines and definitions consider the adoption of an open fuel cycle, importing the fuel from abroad, and the purchase of the first “turnkey” power plant. This results in the fact that, in a preliminary phase, Chile will not need to make a decision on developing or acquiring technology for fuel elements extraction, conversion or fabrication stages, despite having experience in some of these areas due to the work developed for research reactors.

In Chile there are two research reactors, managed by the Chilean Nuclear Energy Commission (http://www.cchen.cl/), which have boosted the nuclear fuel cycle development in the country and complementary activities that allow a safe operation of nuclear facilities.

Front-end and back-end stages developed in the CCHEN for research reactors include:

Uranium Exploration and Reserves

To date, nearly 7% of the national territory has been prospected using geochemical, radiometric-geological, aeroradiometry, analytic, and metallurgic prospecting techniques in order to look for natural atomic material[7] and material of nuclear interest[8]. More than 1,200 radiometric and geochemical abnormalities have been detected, out of which 80 occurrences of Uranium and Thorium have been studied, creating 10 prospects of uranium, thorium and rare earths with 70 sectors of interest requiring more studies. A detailed summary of main exploration projects can be found in the Red Book [3].

Extractive Metallurgy

Currently the CCHEN through its Section of Extractive Metallurgy has developed the necessary knowledge and skills to produce nuclear purity uranium ore concentrate (UOC), which is the raw material for the conversion stage. The knowledge acquired by this Section in obtaining, concentrating and purifying uranium, found in national minerals, is used to research and/or develop processes applicable to national mining.

Conversion

The conversion process from UF6 to metallic uranium has been developed. This process has 3 stages:

1. Obtaining UO2F2 through hydrolysis of UF6

2. Obtaining UF4 through UO2F2 reduction, by adding SnCl2 and hydrofluoric acid.

3. Obtaining metallic uranium through metal-thermal reaction of UF4 with powdered magnesium, Mg.

Currently, the Conversion Laboratory is studying alloys of Uranium – Molybdenum for its use as fuel for research reactors, in order to obtain a reduction greater than 20% of 235U required to reactor’s operation.

MTR fuel elements fabrication

The Fuel Element Plant (known by its Spanish initials PEC) began operation in 1982, with the lab research of the necessary technologies for fabricating nuclear fuel. Nowadays, the PEC fabricates fuel for MTR research reactors. This fuel is used in the first Chilean research reactor RECH-1.

It is noteworthy that Chile is one of the 5 acknowledged manufacturers of this type of fuel, and it is qualified under international standards by the Peten High Flux Reactor (HFR) in the Netherlands, within the framework of the contract signed among the CCHEN, NRG (Nuclear Research and Consultancy Group) and the IAEA.

Spent fuel Management

Operating the RECH-1, under normal conditions, generates 3 to 4 spent fuel elements per year [19], which needs to be managed in an adequate manner. Today, spent fuel is stored in situ in the RECH-1 pools, and is continuously monitored, maintaining the pool water quality. The pools have enough capacity to store the spent fuel for at least 30 years, and therefore long-term strategies have not been established so far.

To date, the spent fuel is transported to the USA after cooling in the reactor’s pool. A total of 129 high-enriched fuel elements (40 elements of 45% of 235U, 58 of 80% of 235U, and 31 of 90% of 235U), fabricated in UK and France, have been shipped. This management is part of the “Global Threat Reduction Program”, promoted by the US Department of Energy (DOE), according to the technical acceptance criteria of the “Research Reactor Spent Fuel Acceptance Program of the USA”.

Fuel elements being currently used by RECH-1 are low-enriched fabricated out of Russian fuel in the Fuel Element Plant (PEC) in Chile. The final disposal of these elements shall be in Chile, and there are no plans of spent fuel reprocessing. These elements will change the current scope of radioactive waste management since they will introduce the long-term management of high level waste in the country.

Policy for ultimate high level waste disposal

Chile has asked the IAEA for support and has participated in technical cooperation projects which aim at defining a generic methodology to manage spent fuel elements of research reactors, in accordance with other countries in the region (Argentina, Brazil, Mexico and Peru.) Among these initiatives, projects RLA/4/018, RLA/3/004 and RLA/4/020 can be observed.

Projects RLA/4/018 and RLA/3/004 were developed jointly with Argentina, Brazil, Mexico and Peru. In general terms, the work focused on defining the basic conditions for a strategy of regional management of research reactor spent fuel, and, specially, on determining the needs for waste interim storage in participant countries. Chilean experts assessed several interim storage options for spent fuels from both research reactors and finally chose dry storage. Thus, the expected management for burned fuel is an interim storage in pools and its subsequent dry storage. To comply with the abovementioned, a facility gathering the required safety conditions for this storage shall be needed for some tens of years, prior to making the decision about the final confinement. As a result of these projects, Chile is working on the conceptual design of interim dry storage containers for the MTR spent fuel. Project RLA/4/020 aims at developing the engineering for the containers to be used to transport spent fuel resulting from research reactors. Argentina and Brazil participate in this project, which is currently in execution stage.

Finally, the CCHEN is developing a project together with the Swedish company SKB for studying copper’s resistance to corrosion and its use as material for high level containers. In order to do that, studies aiming at determining copper’s corrosion rate are being developed, simulating the real environmental conditions to be undergone by containers in the repositories, including temperature, sulfide content, water chemistry, and especially salinity.

2.8. Research and development

2.8.1. R&D organizations

Peaceful applications of both nuclear energy and ionizing radiation represent a major contribution to the development of nations. The varied fields which benefit from their use include health, industry and mining, agriculture, the environment, and the food industry, among others.

The Chilean Nuclear Energy Commission (CCHEN), the State institution responsible for development, applications, regulation and inspection of nuclear energy-related activities in our country, is required to implement action aimed at providing answers within a wide range of activities in many different fields.

CCHEN works on the basis of a series of objectives and strategic products, with committed goals and results established on a yearly basis with various government entities. This implies major work involvement in terms of planning and management control to ensure that our institution will achieve said goals and results.

Within the functions assigned to CCHEN by current legal regulations, nuclear and radiological safety as well as radiological and environmental protection plays an important role in the institution’s activities. To attain its goals in this area, CCHEN has sections in charge of managing radioactive waste, of responding to radiological emergencies, and of rendering personal dosimetry services for workers exposed to ionizing radiation in their work places.

CCHEN is a supplier of radio-isotopes and radio-pharmaceutical products used for diagnosis and treatment. Moreover, it contributes to the treatment of burns through the biological tissue bank and renders blood irradiation and medical-surgical product services. It is also involved in radiological and environmental vigilance in collaboration with diverse institutions across the country.

The above commitment includes calibration of radio-therapy and radio-diagnostic equipment used in nuclear medicine to ensure flawless operation that protects patients as well as the professionals involved in treatment.

The industry sector also benefits from peaceful applications of nuclear energy through studies using radioactive tracers that contribute to improve process efficiency. In a different sphere, nuclear densimeters are being used more frequently to conduct measurements ensuring the quality of certain products.

Development of the manufacturing of fuel elements for use in the research nuclear reactor located in the commune of Las Condes (RECH-1) represents a major step in the progress of nuclear technology in Chile. Fine-tuning of this technology has been the result of years of study and testing which, in addition to contributing to technological development, has led to savings in foreign currency by making Chile self-sufficient in this area.

In terms of basic research, major progress has been achieved in the study of plasma physics and so-called “pulsed power”. The work carried out in this field by our professionals is of utmost relevance within a world-wide context.

Technical cooperation and international relations play important roles in all of the above through the International Atomic Energy Agency (IAEA). CCHEN is in charge of representing Chile in terms of everything related to international technical cooperation in training and joint projects of several institutions financed by the IAEA.

CCHEN is equipped with numerous facilities, equipment, and trained personnel to carry out the aforementioned activities.

CHILEAN NUCLEAR ENERGY COMMISSION – CCHEN

The purpose of the CCHEN, established by law, is to address problems related to production, acquisition, transfer, transportation, and peaceful use of atomic energy and of fertile, fissionable, and radioactive material.

Its mission has been to engage in Research & Development, including that of applications of nuclear energy, and in regulation, control, and inspection of the same, providing both technological and research and development services to external sectors, such as Ministries, State institutes, Public and Private Enterprise, Universities, and Educational establishments, so as to achieve effective contributions to scientific and technological knowledge, to the well-being and safety of persons, and to protection of the environment.

CCHEN is directed and managed by a Council of Directors (consisting of seven members) which delegates some of its administrative functions to an Executive Director. It is organized into 7 Departments and 6 Consulting Offices.

CCHEN is regulated by Law No.16,319/1965, the Organic Law of CCHEN (Ley Orgánica de la CCHEN), which establishes the institution’s main functions, and by Law No.18,302/1984, as amended by Law 19,825/2002 on Nuclear Safety, which confers to CCHEN the character of regulatory organism for nuclear and category-one radioactive facilities.

CCHEN’s FUNCTIONS

The law establishes seven functions of CCHEN:

1. To advise the government in all matters relating to nuclear energy and, specially, to the study of treaties and agreements with other countries or with international organisms, and to contracting loans or help for the above purposes; in the study of legal or regulatory provisions related to the ownership regimen applicable to ore bodies and to fertile, fissionable, and radioactive material; and in the dangers of nuclear energy and other matters in its charge;

2. To prepare and propose to the government the national plans for research, development, use and control of nuclear energy in all its aspects;

3. To execute, either on its own or in agreement with other persons or entities, the plans referred to in item b);

4. To promote, undertake or investigate, as applicable and in compliance with current legislation, exploration, exploitation, and processing of natural nuclear material, commerce involving said material already extracted and concentrates, derivatives, and compounds of the same, stockpiling of material of nuclear interest, and production and utilization of nuclear energy in all its forms for peaceful ends, among them its application for medical, industrial, or agricultural purposes, as well as for generation of electrical and thermal energy.

5. To promote learning, research and dissemination of the use of nuclear energy;

6. To collaborate with the National Health Service in prevention of risk inherent to the use of nuclear energy, specially in the areas of occupational hygiene, industrial medicine, environmental pollution, contamination of food and air. CCHEN must maintain an effective risk control system for purposes of protecting its own personnel and in order to prevent and control possible environmental pollution problems within and around its nuclear facilities;

7. To exert, as determined by Regulations, control of production, acquisition, transportation, import and export, use, and handling of fertile, fissionable, and radioactive elements;

8. On an annual basis, the Commission must provide the Mining, Economy, and Commerce Commission of both branches of Congress with an executive summary reporting on development of all its activities.

INFRASTRUCTURE

CCHEN has constructed and operates a US$ 200 million scientific-technological infrastructure which is unique in the country and consists of three facilities.

i. Headquarters

The building which houses CCHEN’s central offices is located at Amunátegui No. 95, commune of Santiago. This building houses the offices of the President, Executive Director, plus the following offices and units:

• Judicial
• Planning and Management Control
• Assistant Management Department
• Technical Cooperation and International Relations
• Public Information and Promotion
• Auditing

ii. La Reina Nuclear Studies Center

The “La Reina Nuclear Studies Center” is located at Av. Nueva Bilbao No. 12,501, Las Condes commune (Eastern Sector of Santiago.) including:

• A nuclear research reactor, referred to as RECH-1 (Chilean Experimental Reactor Number 1.), used for preparation of radioactive isotopes and to conduct various physical-chemical studies of material.
• An 18/9 Cyclone cyclotron, used for preparation of Fluor, sodium fluoride, and for research and development of new radio-pharmaceutical drugs.
• A pulse power generator, referred to as Speed 2, used for research and development of thermonuclear plasmas.
• Three Cobalt-60 and Cessium-137 radiators, of great use for irradiation of human blood for transfusions in immunosuppressed patients, among various other applications.
• Laboratory for Production of Radio-isotopes and Radio-pharmaceutical Drugs
• Neutron Activation Analysis
• Environmental Radioactivity
•  Radio-medicine
•  Radioactive Tracers
•  Environmental Isotope Laboratories
• Nuclear Techniques in Agriculture
•  Personal Dosimetry
• Physical Characterization
• Plasma Physics
• Biological Tissue Processing
• Chemical metrology and Ionizing Radiations
• Workshops

iii. Lo Aguirre Nuclear Studies Center

The “Lo Aguirre Nuclear Studies Center” is located on kilometer 20 of Route 68, going to Valparaiso including:

• A nuclear research reactor, referred to as RECH-2
• The Radioactive Waste Management Unit. This is where radioactive waste produced by CCHEN and by external entities is treated and also stored.
• A Multi-purpose Radiation Plant, capable of continuous, semi-industrial sterilization processing of various products, such as foods and raw materials.
• A Fuel Elements Plant, where the basic structures for spent nuclear fuel used by CCHEN’s nuclear research reactors are prepared.

2.8.2. Development of advanced nuclear technologies

The department of Thermo-nuclear Plasmas began operating at CCHEN towards the end of 1993 and became an active research center in this field within a period of five years. Its current line of work is centered on plasma physics in small devices, in which basic science problems in plasma physics of interest in thermo-nuclear fusion, such as the dynamics and stability of dense plasmas produced by electrical discharges, are studied.

At the same time, the study and development of technologies associated with a field of research referred to as pulsed power is being promoted. These technologies have applications in several fields of science and engineering, such as production of transient electronic discharges, generation of radiation and bundles of ions, high-density matter, production of intense pulsating magnetic fields, and shock waves.

What is being done Achievements Contributions to Chile

PLASMA PHYSICS SPEED-4 Pulsating radiation generator. Developed by the Department: · PF 400ј · PF 50 ј SPEED-2 Pulsating radiation generator, the most powerful in the Southern Hemisphere. -Nanofocus NF 0.1 ј

Transient electrical discharges. Ionization processes in hollow cathode discharges. Capillary discharge. Transient studies in Z-pinch. Miniaturized Plasma Focus.

Generation of highly advanced knowledge. Experimental center of nationally and internationally acknowledged excellence, an acknowledged leader in small-device plasma physics. Undergraduate and graduate education of professionals. Projected industrial application of miniaturized devices (rock fragmentation and detection of antipersonnel mines, among others). Obtained a P&CT Ring for the research Center and for Application in Plasma Physics and Pulsed Power Technology.

2.8.3. International co-operation and initiatives

Chile seeks to participate actively in international energy organizations, recognizing the importance of international bodies for understanding and regulating Chile’s increasingly interdependent economic and social processes.

The government effectively coordinates its participation in international arenas in order to add to its store of public knowledge and to provide key agents with information that can improve both public and private decision-making. To enhance the analysis of Chilean energy policies, closer ties have therefore been forged with major players such as the International Energy Agency (IEA), the International Atomic Energy Agency (IAEA), the Asia Pacific Economic Cooperation (APEC) forum and the International Renewable Energy Agency (IRENA).

Chile also participates actively in regional entities that analyze, coordinate and design energy policies, including the Latin American Energy Organization (Organización Latinoamericana de Energía, or OLADE), the Energy Experts Group of the Union of South American Nations (Union de Naciones Sudamericanas, or UNASUR), the Commission for Regional Energy Integration (Comisión de Integración Energética Regional, or CIER), the Ibero-American Association of Energy Regulators (Asociación Iberoamericana de Entidades Reguladoras de la Energía, or ARIAE) and the Mercosur Energy Subgroup. Chile also is a member of APEC’s Energy Working Group.

In the nuclear field, CCHEN’s interaction with external entities, national as well as international, is carried out by the institution’s Technical Cooperation and International Relations Unit, which coordinates cooperation within the topic of nuclear energy in the country, with direct support from the IAEA. The Technical Cooperation Unit coordinates participation of CCHEN officials and of other national entities in training activities abroad. It also coordinates training in Chile of international trainees sponsored by IAEA.

CCHEN also contributes to achieve participation of its professionals in congresses and international scientific meetings, where knowledge of its current work in the areas of research and development and in the area of peaceful applications of nuclear energy is disseminated.

During the 2007-2008 biennium, Chilean professionals participated in 11 regional projects of the ARCAL program (Regional Cooperation Agreements for Latin America and the Caribbean) and in 9 projects sponsored by IAEA.

CCHEN manages technical cooperation offered to Chile by the IAEA generating infrastructure and specialized technical competencies for resolution of national problems.

IMPACT OF TECHNICAL COOPERATION IN THE NUCLEAR FIELD

2.9. Human resources development

In Chile, human resource development in the nuclear field has been focused mainly on the two research reactor facilities in the country. Until now, this strategy of training has been through agreements with institutions in foreign countries such as England, the United States, Argentina and Spain. Likewise, since 1965, the Chilean Nuclear Energy Commission (CCHEN) has been dedicated to the research, development and transfer of peaceful applications results of nuclear energy. Since its beginnings, CCHEN has taken the responsibility for training its professionals at PhD, Masters, and technical levels in different areas related to nuclear energy, radiation protection and radioactive waste management.

If Chile officially decides to start a Nuclear Power Program, it will be necessary to have a constant flow of prepared human resources. Currently, the country is in the first phase according to the IAEA document “Milestones in the Development of a National Infrastructure for Nuclear Power” (IAEA Nuclear energy Series No. NG–G–3.1) and is working on a Human Resources Development Plan that will address all the activities that have to be carried out during the next phase and the competences and education required to accomplish them. The difference between the future staff required and the national capabilities will be analyzed and these gaps will be shortened in order to be prepared in case the official decision is made. The Human Resources Development process is being developed based on an integral approach. This means that human capital is understood as a system composed of different processes: recruitment, training and development until people’s retirement age. This would be immersed within a safety culture concept, subject that shall pervade all associated decisions.

2.10. Stakeholder Communication

The Chilean Nuclear Energy Commission (http://www.cchen.cl/) is the institution in charge of interacting with the different stakeholders concerning the country’s current situation in the nuclear field. One of its roles is to spread information about nuclear energy uses, task carried out by the Public Information and Promotion office by means of presentations, seminars, visits to nuclear and radiological facilities, and through its website.

It is noteworthy that communication with stakeholders meets the current needs of the country and its two research reactors, but a strategy for communication with stakeholders regarding a possible nuclear power program has not been implemented yet. Now, Chile is moving forward in identifying the most important actors and ways of interacting with them, in case of a possible decision on a nuclear power plant.

3. NATIONAL LAWS AND REGULATIONS

3.1. Regulatory framework

3.1.1. Regulatory authority(s)

The Nuclear Safety Law (Law No. 18,302), in its Article 2 establishes that the regulation, supervision, control and inspection of the activities related to the peaceful uses of the nuclear energy, and facilities and nuclear substances correspond to the Chilean Nuclear Energy Commission (CCHEN) and the Ministry of Energy, where appropriate.

Article 4 of the same law indicates that for the site exploration, construction, commissioning, operation and decommissioning of the facilities, plants, centers, laboratories, establishments and nuclear equipment, an authorization of the Chilean Nuclear Energy Commission will be needed. On the other hand, nuclear power stations, enrichment plants, reprocessing plants and the permanent storage of radioactive waste will be authorized by supreme decree, through the Ministry of Energy.

Of the two regulatory bodies for the nuclear facilities, the Ministry of Energy has the responsibility of licensing the facilities covered by the Convention on Nuclear Safety. This Ministry depends directly on the central government. The Chilean Nuclear Energy Commission reports to the government through the Ministry of Energy.

The authorities on radiation protection are the following:

• CCHEN in its own facilities and those relevant installations defined in the decree law No. 133/84, and

• The Health Ministry through its regional offices defined in the decree law No. 133/84.

CCHEN has taken all rational measures to guarantee as much independence as possible according to available resources. In this sense, an independent department that acts as a regulatory authority inside CCHEN regulates the nuclear safety and radiation protection matters.

The promotion and use of nuclear energy (Law No. 16,319) created by the Chilean Nuclear Energy Commission, functions to foment, perform or investigate the exploration, exploitation and the benefit of natural atomic material, its trade and the production and use with peaceful aims of the nuclear energy in all its forms.

As part of the studies related to the decision to launch a nuclear power program in Chile, the independence of the regulator is being considered as a key issue.

3.1.2. Licensing Process

Nuclear Power

Chilean regulations do not establish a procedure to grant licenses, except that the Nuclear Safety Law mentions that nuclear facilities require a site, construction, commissioning, operations and a decommissioning license.

Nuclear Research Facilities

The Nuclear Safety Law establishes that the nuclear facilities require a site, construction, commissioning, operations and a decommissioning license. CCHEN internal standards are applied. These standards are currently under a revision process.

3.2. Main national laws and regulations

The hierarchy status of the legal documents in Chile is as follows:

1° National Constitution: Approved by the National Congress by qualified quorum.

2° Constitutional Laws: Approved by the National Congress by qualified quorum.

3° Laws: Approved by the National Congress by simple majority and have power over the other legal national instruments (except over National Constitution and Constitutional Laws).

4° Decrees: Approved by the Executive. They are issued when the National Congress delegates to the Executive the faculty to regulate matters that have to be included in a law (that should be issued by the National Congress). This faculty is given by the National Congress through a law. They have the same power of a law.

5° Supreme Decrees: Approved by the Executive. They are proposed by the Ministries. Usually, the National Congress, through a law, designates the Ministry that has to propose this type of instruments. They have less power than a law or a decree law.

6° Norms: Issued by the Regulatory Authority.

3.2.1. Main National Laws

The legislative framework applicable to nuclear facilities in Chile is defined by the following Laws:

a) LAW No. 18,302 - NUCLEAR SAFETY LAW, published in the Official Gazette No. 31,860 of May 2, 1984. This law consists of six titles, that is:

i. TITLE I - REGULATORY AUTHORITY, in which the different regulatory bodies and their jurisdiction fields are defined.

ii. TITLE II - DEFINITIONS

iii. TITLE III - NUCLEAR SAFETY, in which the general approach related to nuclear safety is established, including authorizations and their requirements to operate a nuclear facility.

iv. TITLE IV - INFRACTIONS TO THE LEGAL AND REGULATION REQUIREMENTS ON PROTECTION AND NUCLEAR SAFETY, it establishes the sanctions that can be applied in case of non-compliance.

v. TITLE V - CIVIL RESPONSIBILITY FOR NUCLEAR DAMAGE, it establishes the amount and the modes of insurance to cover nuclear damage.

vi. TITLE VI - RADIOACTIVE FACILITIES, it establishes the competent authority for the control of the radioactive facilities and the responsibility for the preparation of the associated rules applicable to these facilities.

b) LAW No. 18,730 - MODIFIES THE NUCLEAR SAFETY LAW, published in the Official Gazette No. 33,143 of August 10, 1988. This Law only modifies the Title VI of the previous Law, with regard to the competent authority for the control of the radioactive facilities. The Chilean Nuclear Energy Commission is incorporated as competent authority for the control of the facilities of the first category, as established in the Decree Law No. 133, indicated later on.

c) LAW No. 19,825 – MODIFIES THE NUCLEAR SAFETY LAW, published in the Official Gazette of October 1, 2002. This law mainly modifies Title III of the previous Law, with regard to the competence of the Chilean Nuclear Energy Commission (CCHEN) as competent authority for the control of transportation of radioactive material in or through the exclusive economical zone, “presential sea” and national air space.

d) LAW No. 20,402 – MODIFIES THE NUCLEAR SAFETY LAW, published in the Official Gazette of February 1, 2010. This law mainly modifies the dependency of the CCHEN from Ministry of Mining to Ministry of Energy.

e) LAW No. 19,300 – LAW ON ENVIRONMENT GENERAL BASES, published in the Official Gazette of April 9, 1994. This law consists of six titles, that is

i. TITLE I – GENERAL ASPECTS.

ii. TITLE II – ENVIRONMENTAL MANAGEMENT TOOLS.

iii. TITLE III – RESPONSIBILITY FOR ENVIRONMENTAL DAMAGE.

iv. TITLE IV - INSPECTION.

v. TITLE V – ENVIRONMENTAL PROTECTION FUND.

vi. TITLE VI – NATIONAL ENVIRONMENTAL COMMISSION.

f) LAW No. 20,417 – MODIFIES LAW ON ENVIRONMENT GENERAL BASES, published in the Official Gazette of January 26, 2010. This law mainly creates the Ministry of Environment which replaces the National Environmental Commission.

3.2.2. Main National Regulations

The regulatory framework applicable to nuclear facilities in Chile is defined by the following Regulations:

a) DECREE LAW No. 87/84 - REGULATION ON PHYSICAL PROTECTION OF NUCLEAR MATERIAL AND FACILITIES, published in the Official Gazette No. 32,117 of March 9, 1984. It is based on IAEA document INFCIRC/225.

b) DECREE LAW No. 133/84 – REGULATIONS ON AUTHORIZATIONS FOR RADIOACTIVE FACILITIES OR IONIZING RADIATION GENERATING EQUIPMENTS, PERSONNEL OPERATING SUCH EQUIPMENTS AND OTHER RELATED ACTIVITIES, published in the Official Gazette No. 31,955 of August 23, 1984. This ordinance categorizes the different radioactive facilities, according to the associated risk of the practice, the required authorizations and the associated requirements for both, facilities and workers; it includes the import, export and transportation of radioactive material, as well as the way to apply sanctions.

c) DECREE LAW No. 3/85 - REGULATION ON RADIATION PROTECTION OF RADIOACTIVE FACILITIES, published in the Official Gazette No. 32,153 of January 3, 1985. Basically it establishes the limits of acceptable dose (based on the ICRP No. 26) and the requirements for the Services of Personal Dosimetry laid down in the country.

d) DECREE LAW No. 12/85 - REGULATION FOR THE SAFE TRANSPORTATION OF RADIOACTIVE MATERIAL, published in the Official Gazette No. 32,192 of June 10, 1985. It is a transcription of the 1985 version of the Safety Guide No. 6 of the IAEA – Regulations for the safe transport of radioactive material.

e) SUPREME DECREE No. 95/01 – REGULATION ON ENVIRONMENTAL IMPACT ASSESSMENT SYSTEM. Published in the Official Gazette of December 7, 2002.

3.2.3. Norms

The technical requirements for nuclear research reactor operators are established in standards approved by CCHEN. The regulatory position in the case of technical matters not defined in national regulations, including the case of nuclear facilities, is to adopt the IAEA recommendations or the regulations of the supplier’s country, if no specific guidance appears in the IAEA documents.

CCHEN Safety Standards

a) NCS-DR-01 "Radioactive Waste Management"

b) NCS-GG-02 "Procedure for Licensing Nuclear and Radioactive Facilities "

c) NCS-GG-04 "Specific Safety Procedures"

d) NCS-PM-01 "Calibration of Radiation Detection Devices"

e) NCS-PP-01 "Radioactive Facilities Operator Licensing"

f) NCS-PP-02 "Nuclear Research Reactor Operator Licensing”

g) NCS-PR-01 "Radiation Protection Standards"

h) NCS-SI-01 "Occupational Health"

i) NCS-SV-01 "System of Accounting for and Control of Nuclear Material”

j) NCS-TR-01 "Nuclear and Radioactive Material Transportation Licensing "

CCHEN Regulatory Guides

a) GR-C-01 “Design Criteria for Structures of Nuclear Research Facilities"

b) GR-E-01 "Design Criteria for Electric Systems of Nuclear Research Facilities”

c) GR-G-02 "Nuclear Safety and Radiation Protection Criteria”

d) GR-G-03 "Nuclear Research Reactor Safety Reports”

e) GR-G-08 "Nuclear Research Facilities Emergency Planning”

f) GR-G-09 "Nuclear Research Facilities Commissioning”

g) GR-G-10 "Quality Assurance for Commissioning and Operation of Nuclear Research Facilities”

h) GR-G-11 "Nuclear Research Reactor Operation"

i) GR-G-13 "Periodic Inspection of Nuclear Research Facilities”

j) GR-G-14 "Organization and Procedures of Nuclear Research Reactors”

k) GR-G-15 "Radiation Protection for Nuclear and Radioactive Facilities”

l) GR-M-01 "Design Criteria for Hydraulic Systems of Nuclear Research Reactors”

m) GR-N-01 "Design Criteria of Pool-type Nuclear Research Reactor Core”

n) GR-P-01 "Radiation Protection Design Considerations of Nuclear Research Facilities”

4. REFERENCES

[1] INE, June 30th, 2009. http://www.ine.cl/

[2] Central Bank of Chile, 2005. Looking at Chile’s Economic Development from an Internacional Perspectiva.

[3] CEPAL, 2008. Social Panorama of Latin America

[4] World Bank, Country Brief.

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/LACEXT/CHILEEXTN/0,,contentMDK:22255176~pagePK:1497618~piPK:217854~theSitePK:325273,00.html

[5] CIA, 2009. World Factbook, GPD-per capita (PPP).

[6] Economist Intelligence Unit. http://www.eiu.com/

[7] World Economic Forum (WEF), 2009-2010. Global Competitiveness Report

[8] Foreign Investment Committee, http://www.inversionextranjera.cl/

[9] Central Bank of Chile, http://www.bcentral.cl/

[10] Transparency International, 2009. Global Corruption Report.

[11] Chandima Dedigama A., 2009. International Property Right Index (IPRI).

[12] International Monetary Fund (IMF), 2010. World Economic Outlook Database

[13] CNE, 2008. Energy Policy: New Guidelines

[14] CNE, 2009. Non Conventional Renewable Energy: Potential for Electricity Generation

[15] CNE, 2008. Chilean Energy Balance.

[16] Law N°20.258. “Establishes a transitory mechanism for returning the specific tax on diesel oil to electricity generation companies” (2008).

[17] Load Economical Dispatch Center, 2009. Annual Report

[18] CNE, 2009. Nuclear Electricity in Chile: Possibilities, Gaps and Challenges

[19] CCHEN, 2009. National Diagnosis Regarding Radioactive Waste: Current Status and Projections

Appendix 1: International, Multilateral and Bilateral Agreements

The Chile Government, through the existent legal and normative structure in the country, has demonstrated his concern and interest in the matter, which has been ratified with the subscription and ratification of the following conventions:

a) Decree Law No. 272/97, Promulgates the Convention On Nuclear Safety. Issued On June 3, 1997.

b) Supreme Decree No. 381/05 – Promulgates the Convention On Early Notification Of A Nuclear Accident. Issued On April 25, 2006.

c) Supreme Decree No. 8/04 - Promulgates the Convention On Mutual Assistance In The Case Of A Nuclear Accident Or Radiological Emergency. Issued On April 12th, 2005.

d) Supreme Decree No. 18/90 – Promulgates the Vienna Convention On Civil Liability For Nuclear Damage. Issued On March 8, 1990.

e) Supreme Decree No. 1,212/94 – Promulgates the Joint Protocol Relating To The Application Of The Vienna Convention And The Paris Convention. Issued On January 3, 1994.

f) Supreme Decree No. 709/84 – Promulgates the Treaty For The Prohibition Of Nuclear Weapons In Latin America (The Tlatelolco Treaty) Issued On December 14, 1974.

g) Supreme Decree No. 132/94 – Promulgates Amendments To The Treaty For The Prohibition Of Nuclear Weapons In Latin America (The Tlatelolco Treaty) Issued On April 26, 1994.

h) Supreme Decree No. 1121/94 – Promulgates the Convention On The Physical Protection Of Nuclear Material. Issued On October 17, 1994.

i) Supreme Decree No. 797/95 – Promulgates the Treaty On Non-Proliferation Of Nuclear Weapons. Issued On September 25, 1995.

j) Supreme Decree No. 17/04 – Promulgates the Additional Protocol To The Safeguards Agreement. Issued March 20, 2004.

Appendix 2: main organizations, institutions and companies involved in nuclear power related activities

Organisation:

Name: Comisión Chilena de Energía Nuclear (Chilean Nuclear Energy Commission)
Address: Amunátegui 95, Santiago Centro, Santiago, Chile
Phone number: (56-2) 470 2500

Fax number: (56-2) 470 2570

Website: http://www.cchen.cl/

Name of report coordinator: Victor Guerrero T.

Institution: Chilean Nuclear Energy Commission (CCHEN)

Contacts:

Phone number: (56-2) 3646184

Fax number: (562) 3646181

Email: vguerrer@cchen.cl

Attachment 1: PREFIXES AND CONVERSION FACTORS

TABLE 1. PREFIXES

TABLE 2. CONVERSION FACTORS FOR ENERGY

TABLE 3. CONVERSION FACTORS FOR MASS

TABLE 4. CONVERSION FACTORS FOR VOLUME

[1] By making legal and regulatory changes, creating tax incentives, eliminating barriers to this technology and adjusting the institutional framework (by creating the Renewable Energy Division within the Ministry of Energy as well as the Center for Renewable Energy).

[2] Through a massive increase in the budgets for different measures, legal and regulatory changes, tax incentives and adjustments to the institutional framework by creating the Energy Efficiency Division in the Ministry of Energy and the Agencia de Eficiencia Energética (Energy Efficiency Agency).

[3] If the two systems are not interconnected, the SING would not be large enough to safely incorporate the nuclear plants being considered in the model and therefore they would only be introduced in the SIC.

[4] The size range for nuclear reactors is: 800 to 900 MW, 1,000 to 1,100 MW, and around 1,600 MW. The first category includes PHWR reactors; the second includes PHWR, PWR and BWR reactors; and the third comprises mainly BWR and PWR reactors. However, the trend is towards ever larger modules. This analysis does not consider thorium reactors, because these technologies are rarely the subject of commercial development, due to the lack of available information and because they present other problems than those addressed in this document.

[5] As can be seen in Table 3, for 2009 the average cost of nuclear generation is lower than that of coal, LNG and oil-based generation. As future fossil fuel costs are projected to increase, nuclear electricity generation maintains its cost advantage throughout the period.

[6] In the event that the SIC and the SING are not interconnected, nuclear energy would still be part of the ideal development of the electricity sector, but this would only begin in 2025 and during the period in question only three units would be brought into operation (all in the SIC, of course).

[7] Uranium and thorium

[8] Zirconium, niobium, titanium, hafnium, beryllium, cadmium, cobalt, lithium, heavy water, helium, gadolinium, uranium and thorium.