TABLE 3. ESTIMATED AVAILABLE ENERGY SOURCES

	Estimated available energy sources
	Fossil Fuels			Nuclear	Renewables
	Solid1	Liquid2	Gas3	Uranium4	Hydro5	Other
						Renewable6
Total amount in specific units*	700.00	1.13	16.75	600	0.02	0.012***
Total amount in Exajoule (EJ)	13.18	0.05	0.65	0.328**

* Solid, Liquid: Million tons; Gas: Billion m3; Uranium: Metric tons; Hydro, Renewable: TW

** light water reactor open cycle assumption

***CNE estimates. Includes geothermal, wind power, biomass and small-scale hydraulic energy (<20MW)

Source: Energy Policy: New Guidelines (National Energy Commission 2008)

(1), (2), (3) CNE (www.cne.cl )

(4) Reasonably Assured Resources (RAR) under < USD 260/kgU, Uranium 2014, Resources, Production and Demand (“Red Book”).

(5) Hydropower: technically exploitable capability, the amount of the gross theoretical capability that can be exploited within the limits of current technology, CNE.

(6) Energy Policy: New Guidelines, CNE 2008.NCRE: potential for electricity generation.

TABLE 4 ENERGY STATISTICS (Exa-Joule [EJ])

									Average rate of annual growth (%)
	1973	1980	1990	2000	2010	2012	2013	2014	2010-2014
Energy Consumption**
Total	0.371	0.418	0.599	1.054	1.343	1.658	1.718	1.586	1.20
Solids***	0.057	0.052	0.110	0.134	0.203	0.278	0.316	0.322	3.35
Liquids	0.205	0.222	0.286	0.488	0.661	0.742	0.724	0.704	0.45
Gases	0.033	0.044	0.060	0.185	0.188	0.191	0.191	0.158	-1.23
Nuclear	-	-	-	-	-	-	-	-	-
Hydro	0.015	0.026	0.032	0.069	0.090	0.073	0.071	0.083	-0.58
Other Renewables****	0.061	0.074	0.111	0.178	0.200	0.374	0.416	0.319	3.39
Energy Production
Total	0.309	0.304	0.339	0.368	0.375	0.525	0.604	0.575	11.28
Solids***	0.046	0.027	0.064	0.011	0.010	0.016	0.064	0.122	86.89
Liquids	0.076	0.069	0.039	0.012	0.010	0.015	0.016	0.020	14.87
Gases	0.110	0.107	0.092	0.095	0.076	0.048	0.038	0.031	-6.20
Nuclear	-	-	-	-	-	-	-	-	-
Hydro	0.016	0.027	0.033	0.072	0.079	0.073	0.071	0.084	0.44
Other Renewables****	0.061	0.074	0.111	0.178	0.200	0.374	0.416	0.318	3.37
Net import (Import-Export)

** Energy consumption = Primary energy consumption + Net import (Import - Export) of secondary energy.

*** Solid fuels include coal, lignite

****Renewables include biomass, wind, biogas.

Source: Chilean Energy Balance (National Energy Commission – www.cne.cl )

During the last 30 years, Chile’s energy policy has been based on open, competitive markets. Within this framework, the State plays a regulatory role, and its entrepreneurial activities are limited. It is presumed that the market will provide adequate security of supply⁽¹⁾. However, one of the lessons of the global energy reality -- marked by the gradual exhaustion of fossil fuels, increasing concern about security of supply and problems associated with climate change -- is that the market alone is not able to address new challenges, and that a more proactive role by the State is needed to reconcile energy and competitiveness objectives with those of security and sustainability.

In addition to local energy issues, there are a number of external challenges to be addressed, particularly concerning climate change. This concern has led a number of countries to make commitments with regards to their GHG emissions and to develop policies to mitigate these emissions. Given Chile's increasing economic and political interaction with the world, it is quite probable that Chile will not only face demands to implement emissions mitigation actions, but also to tailor its export business to reduce its “carbon footprint” to the rest of the world or similar mechanisms.

Bearing in mind these challenges, the government has implemented a series of measures designed to promote the development of NCRE⁽²⁾ and energy efficiency⁽³⁾. These measures not only address global environmental problems, but are also in line with the explicit government objectives. These objectives are 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.

On December of 2015, the Government of the President Michelle Bachelet, published the document Energy 2050: Chile’s Energy Policy, as a long term energy policy with a clear road map of the Chilean energy sector through 2050. The objective of this document is to adopt a strong position regarding the future development of the energy matrix, as well as to outline the main guidelines and measures the country will adopt in order to implement it. It has specific goals for 2035 and 2050, and is based on four pillars:

• Pillar 1: Quality and Security of Supply

1. Security and Flexibility of Centralized Production

2. Decentralized Production and Active Management of Demand

• Pillar 2: Energy as a Driving Force for Development

1. Inclusive Energy Development

2. Equitable access to Energy Services and Quality of Life

3. Territorial Inclusiveness

4. Competitiveness in the Energy Sector

• Pillar 3: Environmentally-friendly Energy

1. Renewable Energy Matrix

2. Local Externalities

3. Energy and Climate Change

• Pillar 4: Energy Efficiency and Energy Education

1. Energy efficiency

2. Education and Energy Culture

Regarding nuclear energy, the Energy 2050 establishes: “Despite the fact that Chile's Energy Policy does not exclude a priori any generation technology, nuclear energy has not been included as a short-term option, because it requires research on key issues, such as its long-term economic viability in the face of various legal and market conditions, and the legal and institutional amendments required, among others. This research should be directed by the Chilean Nuclear Energy Commission (Comisión Chilena de Energía Nuclear, CCHEN) by drawing on competent national agencies. The next evaluation process of Chile's long-term Energy Policy will review the appropriateness of incorporating this technology into the electricity generation matrix”.

The current government will not make any decisions regarding the use of nuclear energy to generate electricity. However, according to Energy 2050, it is responsible and necessary to continue the studies and technical exchanges with developed countries to allow future Governments to take a stand on this matter, with the participation of an adequately informed society.

The Chilean electricity sector was a global pioneer in establishing competitive conditions in the generation and sale of electricity, maintaining the transmission and distribution segments under a system of financial regulation. In addition, private investment in generation, transmission and distribution assets led to significant expansion in the capacity of each of the electricity systems, thus satisfying the maximum demand of the country.

The main decision making organizations in the electricity sector are 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 govern the country’s energy sector.

• The Ministry’s highest authority is the Minister of Energy. Internal administration and coordination of public energy services is the responsibility of the Undersecretary of Energy (www.energia.gob.cl).

• The following services report to the Ministry of Energy: National Energy Commission, Superintendence of Electricity and Fuels, and Chilean Nuclear Energy Commission.

• CNE (National Energy Commission) is a decentralized and independent public service in charge of technical and economic regulation of the energy sector. It has four main roles: to study and propose regulations; to calculate regulated prices; to provide technical advice to the government; and to technically oversee the sector (www.cne.cl).

• 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, to ensure that this is not be a risk to people or things. (Law 18.410 Fuel and Electricity Superintendence (www.sec.cl)

• CCHEN (Chilean Nuclear Energy Commission) has the mission 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).

In the Chilean electrical market the contracts and prices are established freely between generators and consumers, this means that the distribution companies and the large industrial and mining consumers contributes to the electrical sector’s development at lower prices and higher availability.

For transparency and equal access to the electricity in the free-market pricing for contracts with large clients and distribution companies, the prices are determined every six months by the National Energy Commission, called Long Term Node Prices, simulating the expected operation of the system and calculating prices as an average anticipated marginal cost for a forty-eight-month window. Subsequently, the prices determined in this way are compared with the prices of large client contracts. According to the legal modification carried out in 2005 however, from 2010 on, the prices resulted from long-term public tenders.

In Chile, the reform to the electricity industry was undertaken as part of larger agenda on economic and political reform since 1978, with a view to attract investment into the industry. This larger agenda was commensurate with the emerging beliefs in Chile about the need to enhance the role of private sector and the markets, reduce state participation, and to liberalize prices.

Currently, the Chilean electrical system is 100 % privately owned. The government has a supervisory and regulatory role, through the Ministry of Energy by the CNE and the SEC. The generation segment is dominated by Endesa, Colbun, Gener (AES), Suez and Others. The largest provider of transmission grid is Transelec. The main distributors are Chilectra, CGE Distribution, Chilquinta Energy, SAESA, and others (see Figure 7).

There is central planning at generation level but it is only indicative because the projects are developed and determined by the private actors. The government issues through the national energy commission a biannual report to set the prices of the main interconnected systems, which contains an indicative projection for builds of generation and transmission sectors.

FIG 1: Structure of the Chilean electricity market and regulation

The current network regulation of the sector is non-discriminatory, three party access is applied on the Chilean network. Network operators are required to provide connection to any generator who has complied with current regulations, including environmental, technical standards and construction regulations.

End user prices (energy retail prices) are comprised of regulated distribution charges, a wholesale price and relevant transmission charges. However, the regulation allows consumers with installed power of higher than 500 kW to choose the category of tariff (free or regulated).

The market is structured around three prices – spot (generators), free (large consumers), and regulated (not large consumers).

The Spot market (Spot price): In this regime, dispatch is mandatory whenever the plant is available and the CDEC (Center for Economic Load Dispatch of Chile) commands it to start operating. This implies that dispatch is independent of a genco’s contracts. Gencos which sell more energy than they produce are required to buy the difference in the spot market at the spot price.

The regulated market (Node Price): The regulated prices are prices paid by residential and other small consumers with less than 2 MW of consumption. These prices are calculated every six months by the CNE (National Energy Commission) and they correspond to the expected marginal costs averaged over the next 24 to 48 months. Within each six month period the node price remains fixed, independent of demand and supply conditions. According to the legal modification in 2005, the regulated prices are determined by a long-term public tendering process.

The free market: The free clients, those with installed power of more than 2 MW, face a free market where they can negotiate energy contracts directly with gencos. These contracts establish supply conditions, reliability and prices. While a significant fraction of these contracts are closed at prices which reflect supply conditions only in the long-run, contracts can be freely renegotiated during a supply restriction. If the spot price of energy climbs above the user’s valuation of energy, it seems natural to expect that the genco and the user will undertake a mutually advantageous renegotiation.

The regulatory framework in the Chilean electricity sector has been in place for almost three decades. This has enabled the development of an industry with a high level of participation of private capital, the General Law on Electric Power Services: DFL No 1 of 1982, whose text is included under DFL N°4-2006, contains the main amendments thereto:

• “Short Law 1” , introduced new regulation applicable to the transmission system, development of the transmission system and the rates transmission facility owners can charge to users of the system and regulation concerning reliability and ancillary services.

• “Short Law 2”, of energy supply bids to regulate customers through long-term contracts, up to 15 years. These contracts are indexed to CPI of the United States and other relevant fuel indexes.

• Law Nş 20,257, an amendment to the Chilean Electricity Law enacted in 2008. This amendment promotes the use of non-conventional renewable energies (“NCRE”). The law defines the different types of technologies considered to be NCRE. Under this law, power generation companies are required to supply 5% of their total contractual obligations entered into after August 31, 2007 for the period between 2010 and 2014 with NCRE. The obligation to supply electricity with NCRE will increase by 0.5% annually until 2024, when the requirement will reach 10% of total contractual obligations.

• ENVIRONMENTAL LAW: “General Environmental Law” (19,300) regulates and establishes the environmental framework in Chile. This law was amended early in 2009 by Law 20,417, which changed the environmental regulation that had existed so far. Among the main changes is the creation of the Environmental Ministry, the Environmental Superintendence as well as the Environmental Courts and the Biodiversity and Protected Wild Areas Service. Among the main modifications is the reformulation of the fines.

WATER RIGHTS: Water rights are governed by the “Código de Aguas” (“Water Code”), which defines the means by which water rights may be obtained, the characteristics of water rights and how such rights may be constituted and exercised. Water rights are granted by the Water Management Board (“Dirección General de Aguas or “DGA”). The Water Code dates back 50 years and was modified for the last time in 2005.

The Chilean electrical grid has four separate systems, widely distributed throughout the country. They are the Far North Interconnected System (SING) in the north, Central Interconnected System (SIC) in the central and southern zone of the country, and Aysen Electrical System and Magallanes Electrical System, located in the extreme south of Chile.

Following is a brief explanation of the two main electrical systems:

• SING -The Norte Grande Interconnected System: goes through the First and Second Regions of Chile and covers an area of 185,142 km² which is equivalent to 24.5% of the continental territory. As of December 31^st, 2015, it has reached a power of 3,968 MW and its supply coverage reaches close to 9% of the population.

• SIC - The Central Interconnected System: consists of 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 31^st, 2015, it has reached a power of 15,616 MW, and its supply coverage reaches close to 90% of the 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 CDECs have based their operation on the regulatory framework and electrical service quality standards in order to ensure 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. 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 CNE. On the other hand, an Expert Panel resolves disagreements among electricity sector companies, and between the companies and the CNE.

The installed electricity generation capacity as of 2015 reaches 19,742 MW. Of these, 15,609 MW (79.1%) corresponded to the SIC and 3,968 MW (20.1%) to the SING*. The remaining 0.8% is distributed among the Aysén and Magallanes electricity systems (SEA and SEM). In Chile, 58% of the country’s total installed capacity is represented by thermoelectric generation, while 29.6% is hydroelectric and 12.4% corresponds to NCREs. In addition to the total installed capacity, there are 20 synchronous power generation plants with their respective electricity systems that have not yet been approved for dispatch by the CDEC (in the testing phase), which reach a total of 459 MW with 74% of NCREs.

The main generation technologies are hydroelectric power plants, 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.

FIG 2: Evolution of installed generation capacity per system over period 2005 to 2015

Source: 2015 Energy statistical yearbook Chile 2005-2015.

Power generation in the SIC during in 2015 reached a total of 52,901 GWh (73.3% of the total), which is classified as 45.9%% thermoelectric, 41.7% conventional hydroelectric and 12.4% NCREs. In the SING, 18,805 GWh of electric power were generated (26% of the total), 95.7% from thermoelectric plants and 4.3% from NCREs. In total -including SSMM, Los Lagos energy system and Easter Island energy system- reached a total of 72,715 GWh, which meant an increase of 2.58% compared to 2014 and an increase of 42.1% in comparison to 2005. In resume, if we sort the total energy by generation category, we distinguish: 10.3% NCRE, 30.6% hydroelectric and 59.1% thermoelectric generation.

FIG 3: Evolution of gross power generation per system over period 2005 to 2015

Source: 2015 Energy statistical yearbook Chile 2005-2015.

On analyzing gross generation during 2015, SIC produced 52,901 GWh (73.3%), which represents an increase of 1.3% compared to 2014. Likewise, SING generated a gross total of 18,805 GWh (26.0%), which is 6.4% higher than the previous year. The total gross generation in 2015 reached 72,175 GWh (SING, SIC and SSMM). Growth rates of approximately 2.6% compared to 2014 between all Chilean interconnected electric systems.

The electricity generation matrix has evolved considerably over the last decades. During 1996 and 1997, average electricity generation was 70% hydraulic, 25% coal-based and 5% from oil and biomass sources. The importance of hydro power to Chile's electricity 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 12,000 GWh), based on current installed capacity.

Between 1998 and 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, which has resulted in an increase in the marginal costs of energy generation and, consequently, higher electricity prices (see Figure 6).

During 2015, the maximum hourly demand in the SIC was registered on March 20th, reaching 7,577 MW, and representing a 0.4% of increase compared to the one recorded on June 30th, 2014 and 31. 4% higher than 2005.

FIG 4: Evolution of SIC hourly demand over period 2005 to 2015

Source: 2015 Energy statistical yearbook Chile 2005-2015.

Meanwhile, the maximum hourly demand in the SING was registered on October 9th, reaching 2,290 MW, which is 4.4% higher than the value recorded on December 26th, 2014 and 49.4% higher than 2005.

FIG 5: Evolution of SING hourly demand over period 2005 to 2015

Source: 2015 Energy statistical yearbook Chile 2005-2015.

FIG 6: SIC & SING demand (December 2014)

Source: CNE (National Energy Commission)

FIG 7: Historical final energy consumption by sector

Source: CNE (National Energy Commission)

FIG 8: Evolution of Marginal Costs for the SIC and SING

Source: CDEC-SIC (Economical Dispatch Centre of SIC), CDEC-SING (Economical Dispatch Centre of SING) and Energy Ministry.

TABLE 5 ELECTRICITY PRODUCTION, CONSUMPTION AND CAPACITY (Exa-Joule[EJ])

										Average annual growth rate (%)
	1970	1980	1990	2000	2010	2011	2012	2013	2014	2010 to 2014
Capacity of electrical plants (GWe)
- Thermal			1.283	4.827	8.080	9.150	9.880	10.160	11.240	2.39
- Hydro			2.486	4.272	5.230	5.670	5.720	5.730	6.120	1.13
- Nuclear			-	-	-	-	-	-	-	-
- Wind			-	-	0.180	0.200	0.200	0.300	0.740	10.63
- Geothermal			-	-	-	-	-	-	-	-
- Other renewable			0.069	0.105	0.460	0.530	0.730	0.840	1.120	6.56
- Total			3.838	9.204	13.960	15.540	16.540	17.020	19.220	2.31
Electricity production (TW.h) (*)
- Thermal			9.440	19.859	21.668	25.215	28.392	30.856	27.230	1.65
- Hydro			8.930	19.000	21.38	20.69	20.046	19.737	23.212	0.59
- Nuclear			-	-	-	-	-	-	-	-
- Wind			-	-	0.325	0.325	0.387	0.547	1.211	9.85
- Geothermal			-	-	-	-	-	-	-	-
- Other renewable (**)			-	0.910	10.000	19.223	9.799	10.299	10.752	0.52
- Total (1)			18.370	39.769	53.369	65.451	58.624	61.439	62.405	1.12
Total Electricity consumption (TW.h)			-	36.292	56.946	60.570	66.230	68.866	70.135	1.50

(1) Electricity transmission losses are not deducted.

Source:

Balance Nacional de Energía (www.minenergia.cl)

National Energy Commission (www.cne.cl)

(*) Electricity production 2000, data from BNE2000 and since 2000 CNE statistics data

(**) Other renewable include solar, biomass and mini-hydro.

TABLE 6. ENERGY RELATED RATIOS

	1970	1980	1990	2000	2010	2011	2012	2013	2014
Energy consumption per capita (GJ/capita)	38.83	37.50	45.45	68.45	62.95	66.41	68.49	71.07	65.48
Electricity consumption per capita (kW.h/capita)	N/A	N/A	1 345.7	2 490.2	3 331.3	3 511.6	3 810.0	3 879.0	3 951.0
Electricity production (GW.h)	N/A	N/A	18 398	41 268	61 608	62 370	65 996	68 482	70 342
Energy production (Tcal)	N/A	N/A	80 952	87 877	89 579	92 486	126 018	143 704	137 411
Electricity production / Energy production (%)	N/A	N/A	19.54%	40.38%	59.14%	57.99%	45.03%	40.98%	44.02%
Nuclear/Total electricity (%)	-	-	-	-	-	-	-	-	-
Ratio of external dependency (%) (1)	37.20%	42.39%	47.58%	68.37%	75.93%	75.65%	66.99%	64.84%	64.88%

Source: - Energy National Balance (www.cne.cl)

- Statistic National Institute (www.ine.cl)

- Load Economical Dispatch Center (www.cdec-sic.cl and www.cdec-sing.cl)

(1) Net import / Total energy consumption.

By the end of the 60s, ENDESA (The National Company of Electricity) through an existent cooperation agreement with France sent several professionals abroad, to study and get training on nuclear subjects. On their return, these professionals set up a Nuclear National Office whose mission was to establish a nuclear power plant in Chile. They decided it would be a 100MW rector and would be located in the Antofagasta region (north part of Chile) and it will include a desalinization plant of about 20.000 m³/month. They also started to look for the site, hiring the US company NUS Corporation for this task. The plan was to have the reactor operating by 1975. The only remaining task was to perform a trip through Europe in order to visit several reactors and learn about the vendors proposal in order to chose a provider and sign the contract.

In 1970, President Frei Montalva started to plan this trip. Proposals from Germany, France, Belgium and UK had already been received.

In October 1970, Allende was elected President, and with his party coming in to power (Unidad Popular), the plan for implementing a nuclear power program was set aside. ENDESA closed the Nuclear National Office and reassigned the professionals to other areas.

By the end of the 70s, with the military government coming in to power, the nuclear option was re-launched. This time the project considered the implementation of a 600 MW reactor, which would be placed in the central region, close to San Antonio. The site selection study was performed by the US company Dames & Moore. Finally the nuclear option was discarded in 1982, due to economical issues. The project didn’t seem to be feasible, from an economic perspective; the nuclear plant not only had high construction and maintenance costs, but also required a robust electrical system. The CNE dismissed the option. Additionally, there was a perceived ambiguity between the peaceful and military use of nuclear energy, so there was an internal opposition to this option as well.

Since then, the debate has become intermittent reemerging strongly with the energy crisis of 2007. During that year, even when President Bachelet had a previous campaign agreement for not reviving this topic, she called together a group of experts for evaluating this possibility. She established the so called Zanelli Commission in order to assess whether nuclear energy would be an option for Chile. The group was composed of ten independent professionals from the academia, business sector and government, with diverse backgrounds and no prior positions regarding nuclear energy or representing any interest group. The main conclusions of the group were that there were no reasons to discard the nuclear option for Chile, but further studies needed to be performed before making any decision.

By the end of 2007, the president requested the Minister of Energy to continue the work of the Zanelli Commission, and to move forward in all required areas to enable the country to make an informed decision regarding nuclear power.

In 2008 the Minister of Energy established the Nuclear Advisory Group (Grupo Consultivo Nuclear, or GCN) to deliver this mandate. This group developed and coordinated a series of activities aimed to decide whether it is advisable for Chile to adopt a Nuclear Power Program (NPP). The GCN had the permanent support of a work team. During 2008, four studies were developed through international public bidding and completed that same year. In 2009 four more studies were performed following the same process.

In December 2009, a Verification Mission from the IAEA came to Chile and reviewed the process performed so far. The purpose was to determine whether Chile was moving in the right direction, and to provide feedback to prepare for a future INIR (Integrated Nuclear Infrastructure Review) Mission which would visit the country in late 2010. The Verification Mission sent by the IAEA concluded that the process performed so far was complete, well-prepared, and complied with IAEA recommendations.

In March 2010, the GCN issued a report to the President, summarizing the work performed so far, right before the upcoming change of government.

In March 2010, the new government of Sebastián Pińera came to power. This new government announced that they will continue studying the nuclear option in close cooperation with the IAEA. Unfortunately, during his government two important events took place that impacted negatively the national plans for implementing a NPP: Chile’s 8.8 earthquake (2010) and Japan’s earthquake and Fukushima accident (2011).

In addition to the tragedy that Chile’s earthquake brought to the country, the event increased public awareness regarding the highly seismic characteristic of Chile and raised fears that the country may not be prepared enough to withstand these kinds of events.

On top of this, the Fukushima accident happened. The event significantly increased the fear and opposition to nuclear power energy, and the consequences of radiation on the lives of people. In a country like Chile, where earthquakes are comparable to Japan, this event contributed to set up extreme positions against nuclear power.

Given this context, moving ahead in the evaluation of the nuclear power option would not have been the most popular decision at the given moment and would have brought tremendous opposition to the work to be performed. So the project was put on hold, and the pace of the studies almost stopped completely for over two years.

During 2012, the project started to move again. A new Nuclear Power Study Group was created, where about 20 professionals of CCHEN will collaborate with a 3 full time members in some key areas, and develop knowledge over time. However, on the road, after almost 2 years, the NPSG was dissolved due to new immediately requirements by the Ministry Of Energy.

On December 2014, the Minister of Energy requested CCHEN to lead a team (Nuclear Power Committee) for providing an opinion regarding the international status of nuclear power, having past 4 years since the last review, and the new knowledge in the different issues involved in a nuclear power programme, reviewing the conclusions, suggestions and recommendations of last studies developed before 2010.

On August 2015 the Nuclear Power Committee submitted the report “Nuclear power generation in Chile: towards a rational decision”, establishing that the nuclear power still being safe, secure, sustainable, reliable and competitive at international level. But, in the national field, the Nuclear Power Committee recommended do some immediate actions to retake the roadmap suspended in 2010.

In December of 2015, the Government of the President Michelle Bachelet, published the document Energy 2050: Chile’s Energy Policy, as a long term energy policy with a clear route map of the Chilean energy sector to 2050. According to Energy 2050, it is responsible and necessary to continue the studies and technical exchanges with developed countries to allow future Governments to take a stand on this matter, with the participation of an adequately informed society.

According to new Energy 2050, CCHEN has the mission to coordinate and develop studies in nuclear power option through 2020. Due to this mandate, on March 2016 CCHEN has established a new internal Adviser Office, which will be in charge of leading and developing all the studies required to establish if the nuclear power technology has relevance in the middle term, and could be recommendable to include as an option in the national energy strategy.

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

1. Main strategic decisions:

At the light of the post-Fukushima scenario, the work has been focused on clarify myths to public opinion. During the past 4 years, CCHEN has been reviewed the IAEA guidelines, in order to developed internal capacities to advise the Government and assess the nuclear power option for Chile. A series of activities has been taken place within this framework, including the develop of technical reports and visit by international experts, which intended to clarify some key aspects of nuclear power option in Chile, as technology and fuel cycle assessment, site selection and seismic technologies for NPP, environmental issues, regulatory aspects, public opinion, waste management, electrical grid, and economics aspects.

For assessing the nuclear power energy option for Chile, different kind of 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, as well as near time developing technologies such as SMRs.

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

There is no set framework for developing the project.

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

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

4. Application of nuclear power: electricity supply, heat supply, water desalination

To be decided. But all the option will be considered.

5. Policy for nuclear fuel cycle

   Even though more studies still need to be performed, it is foreseen that the country is more likely to implement the following:

   1. Open Fuel Cycle: Abstaining from both sending fuel to be reprocessed and from developing its own capacity to do so. This 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.

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

There is no formal NEPIO in place yet. Currently, there is a working group composed of a team from the CCHEN, the National Energy Commission and the Ministry of Energy. The CCHEN team is in charge of leading the work, working directly with IAEA and proposing new studies to the Ministry of Energy.

Some funding has been allocated for performing advisory in strategic communication in nuclear energy and to appropriately inform to public opinion about the process will be carried on towards 2020. Additionally, there is some funding considered for training CCHEN professionals in order to prepare people to help assessing the nuclear power technology in the national energy strategy.

Energy projections for the long term are being performed, using IAEA models, elaborating on studies related to the identification of modifications needed by the electrical regulation, and elaborating on an action plan regarding additional studies in order to conduct an analysis of the reliable and stable connection of nuclear units to the grid. There is also a proposal for interconnecting both electrical grids. The objectives of the new Electrical Transmission Law are:

• Making Transmission favors the development of a competitive market, to lower energy prices to the final client, free and regulated customer.

• Improve safety standards and service quality system.

• Create a more robust and independent system coordinator (reform of the current CDEC SIC and CDEC SING)

At this time, no potential sites have been identified for the location of nuclear power plants in Chile. A first study was performed in order to assess 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 selection of potential sites will be made only once the country has made a decision to launch a nuclear power program.

However CCHEN will work in reviewing international regulation for authorizing sites and licensing process in order to identify main exclusion criteria could be applied in Chile.

CCHEN is the State institution responsible for development, applications, regulation and inspection of nuclear energy-related activities in the country. CCHEN is a supplier of the radio-isotopes and radio-pharmaceutical products used for diagnosis and treatment. It also 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 the 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.

Technical cooperation and international relations play important roles in all of the above through the IAEA. CCHEN is in charge of representing Chile in everything related to international technical cooperation, both in training and joint projects with several institutions, financed by the IAEA.

Development in the manufacturing of fuel elements for use in the research reactor (RECH-1) represents a major step in the progress of nuclear technology in Chile. In addition to contributing to technological development, it 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 by the department of Thermo-nuclear Plasmas, Plasma Physics and Nuclear Fusion Laboratory, in CCHEN. It began operating towards the end of 1993 and its current line of work is centered on plasma physics in pulsed small devices, like z-pinch, wires array, capillary discharges and plasma focus devices, in which basic science problems in plasma physics that are of relevance to nuclear fusion are studied, such as the dynamics and stability, and radiation and particles emission from dense plasmas produced by electrical discharges.

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. Recently the axial plasma shock and plasma jets produced at later time of the plasma focus discharge have been preliminary characterized. On the one hand, plasma shock produced an equivalent damage factor on materials than the expected in large nuclear fusion experimental devices as ITER and IFE experiments. Thus the use of small plasma focus i.e. being used to study the effects of high power flux on materials relevant to fusion reactors. On the other hand, plasma jets could be useful for astrophysical laboratory studies. In addition the effects of pulsed radiation in biological cell as being studied.

Complementary, research using continuous plasmas has started. Plasma torch for studies en biology, material science and waste treatment has been designed and built.

Several plasma diagnostics and radiation detection are being implemented to perform the research as: electrical diagnostics, detection of neutrons, ions beams, spectroscopy, digital optical refractive diagnostics, among others.

Theoretical studies in non thermal equilibrium plasmas have started recently.

In addition, outreach activities to general public and students are a permanent effort of the Thermonuclear Plasma Department of CCHEN. Videos that are widely spread in YouTube have been performed (https://www.youtube.com/user/cienciaentretenida, https://www.youtube.com/user/EntertainingScience ).

The Plasma Physics Department have international collaborations with groups of Argentina, India, Czech Republic, USA, Spain.

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. In this line, closer ties have been forged with major players, such as the International Energy Agency (IEA), the 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 (OLADE), the Energy Experts Group of the Union of South American Nations (UNASUR), the Commission for Regional Energy Integration (CIER), the Ibero-American Association of Energy Regulators (ARIAE) and the Mercosur Energy Subgroup. Chile is also 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 Office, 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 the IAEA.

CCHEN also contributes its professionals for participation in congresses and international scientific meetings, where they disseminate information on its current work in the areas of research and development and in the area of peaceful applications of nuclear energy.

Between 2012 and 2016, thanks in part to the IAEA’s Technical Co-operation Programme (TCP), Chilean professionals participated in 36 interregional projects, 10 regional projects, 18 of which were sponsored by the ARCAL agreement (Regional Cooperation Agreements for Latin America and the Caribbean), and in 6 national projects.

BODY	BENEFICIARY ORGANIZATIONS	IAEA * CONTRIBUTIONS TO CHILE
The Office of Technical Cooperation and International Relations functions as a link between CCHEN and IAEA.	National Institutions that benefit through IAEA’s technical cooperation program: CCHEN, Institute for Nutrition and Food Technology, Public Health Institute, Water Management Office, Agriculture and Livestock Service, National Agricultural Engineering Institute, Metropolitan Sanitary Works Company, Environmental Health Service, National Environmental Commission. Universities: Universidad de Chile, Pontificia Universidad Católica de Chile, Universidad Austral de Chile, Universidad de Concepción, Universidad de la Frontera, Universidad de Antofagasta, U de La Serena Hospitals: José Joaquín Aguirre, San Juan de Dios, Salvador, Clínico Pontificia Universidad Católica de Chile, Fundación Arturo López Pérez, Instituto del Cáncer, Posta Central, Hospital Regional de Valdivia. Clinics: Alemana, Instituto de Radiaciones Médicas, and others.	Since 1976 up to 2011 117 national projects completed. 110 regional and inter-regional projects completed Between 2012 and 2016: 6 active national projects. 10 active regional and 36 active interregional projects

* CCHEN – OCTRI Profiles (May 2016)

Article 2 of the Nuclear Safety Law (Law No. 18,302) establishes that the regulation, supervision, control and inspection of activities related to the peaceful uses of nuclear energy, facilities and nuclear substances correspond to the CCHEN and the Ministry of Energy, where appropriate. Article 4 of the same law indicates that for site exploration, construction, commissioning, operation and decommissioning of the facilities, plants, centers, laboratories, establishments and nuclear equipment, the 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 issue by the Ministry of Energy.

The authorities on radiation protection are the following:

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

• The Health Ministry through its regional offices for lower risk facilities as defined in the same decree No. 133/84.

As part of the studies related to the decision to launch a NPP in Chile, the independence of the regulator is being considered a key issue. Two draft laws have been delivered to the authority, one related to improving the current Nuclear Safety framework and the other proposing the separation of the promotion roles from the regulatory one that either CNEC and MoH hold at present. This new situation might be reflected in a unique Regulatory Council of Nuclear and Radiological Safety and Physical Protection.

Nuclear Power

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

Nuclear Research Facilities

The Nuclear Safety Law establishes that 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.

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

1. 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:

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

   • TITLE II: DEFINITIONS

   • 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.

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

   • TITLE V: CIVIL RESPONSIBILITY FOR NUCLEAR DAMAGE, which establishes the amount and the modes of insurance to cover nuclear damage.

   • TITLE VI: RADIOACTIVE FACILITIES, which establishes the competent authority for the control of the radioactive facilities and responsibility for the preparation of the associated rules applicable to these facilities.

2. 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 CCHEN 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.

3. 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 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.

4. 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 the Ministry of Mining to dependency on the Ministry of Energy.

5. 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

   • TITLE I: GENERAL ASPECTS.

   • TITLE II: ENVIRONMENTAL MANAGEMENT TOOLS.

   • TITLE III: RESPONSIBILITY FOR ENVIRONMENTAL DAMAGE.

   • TITLE IV: INSPECTION.

   • TITLE V: ENVIRONMENTAL PROTECTION FUND.

   • TITLE VI: NATIONAL ENVIRONMENTAL COMMISSION.

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

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

1. SUPREME DECREE 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.

2. SUPREME DECREE 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 practice, the required authorizations and the associated requirements of both facilities and workers; it includes the import, export and transportation of radioactive material, as well as the way to apply sanctions.

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

4. SUPREME DECREE No. 12/85 - REGULATION FOR THE SAFE TRANSPORT 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.

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

The technical requirements for nuclear research reactor 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

1. NCS-DR-01 "Radioactive Waste Management"

2. NCS-GG-02 "Procedure for Licensing Nuclear and Radioactive Facilities "

3. NCS-GG-04 "Specific Safety Procedures"

4. NCS-PM-01 "Calibration of Radiation Detection Devices"

5. NCS-PP-01 "Radioactive Facilities Operator Licensing"

6. NCS-PP-02 "Nuclear Research Reactor Operator Licensing”

7. NCS-PR-01 "Radiation Protection Standards"

8. NCS-SI-01 "Occupational Health"

9. NCS-SV-01 "System of Accounting for and Control of Nuclear Material”

10. NCS-TR-01 "Nuclear and Radioactive Material Transportation Licensing "

CCHEN Regulatory Guides

1. GR-C-01 “Design Criteria for Structures of Nuclear Research Facilities"

2. GR-E-01 "Design Criteria for Electric Systems of Nuclear Research Facilities”

3. GR-G-02 "Nuclear Safety and Radiation Protection Criteria”

4. GR-G-03 "Nuclear Research Reactor Safety Reports”

5. GR-G-08 "Nuclear Research Facilities Emergency Planning”

6. GR-G-09 "Nuclear Research Facilities Commissioning”

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

8. GR-G-11 "Nuclear Research Reactor Operation"

9. GR-G-13 "Periodic Inspection of Nuclear Research Facilities”

10. GR-G-14 "Organization and Procedures of Nuclear Research Reactors”

11. GR-G-15 "Radiation Protection for Nuclear and Radioactive Facilities”

12. GR-M-01 "Design Criteria for Hydraulic Systems of Nuclear Research Reactors”

13. GR-N-01 "Design Criteria of Pool-type Nuclear Research Reactor Core”

14. GR-P-01 "Radiation Protection Design Considerations of Nuclear Research Facilities”

Note: A program to update/upgrade de full regulatory framework is in place.