Market Assessment for Chile

Highlights

Chile's economy is growing at a healthy 6 percent per year.
It leads South America in economic growth and stability.
The 8 percent inflation is especially low for South America.
Chile is a good export base for South America's rapidly growing consumer market of 300 million people.
It is the first South American country to be invited to join NAFTA
It is also expected to soon join the Southern Cone Trade Agreement (MERCOSUR) with Argentina, Brazil, Paraguay and Uruguay, a potential free market of 200 million people.
Chile is the only Latin American country in the Asian Pacific Economic Community (APEC).
The country has a reliable infrastructure for air and sea travel, mail, and national and international telephone connections.

Chile's demand for electricity has been growing by 8 percent annually.
Electricity prices are high (residential prices are US$0.11 per kWh in Santiago).
There is significant potential for increased energy efficiency in all sectors, especially the industrial sector. Chile's top-consuming industries could reduce electricity consumption by almost 30% via increased energy efficiency.
Chilean industry is looking for opportunities to reduce costs and increasingly interested in energy efficiency improvements.
Chile does not have energy performance standards or demand-side management incentives. However, the National Energy Commission is planning to introduce standards in the next few years.
Municipalities have engaged in energy efficiency projects in streetlighting and thermal insulation.
Competitively priced natural gas is likely to be available by 1997.

Local manufacture of low-loss magnetic and electronic ballasts. Not yet available.
Development of ESCO industry. Not yet in place.
Increased sales of imported energy efficient motors. Current sales are low.
Increased sales of imported energy efficient transformers. Current sales are moderate.
Increased sales of imported adjustable speed drives. New to market with explosive growth.
Local manufacture and increased sales of imported industrial process controls. Rapidly growing market.
Local manufacture and increased sales of imported energy-efficient luminaires. New to market.
Increased sales of imported building energy management systems. New to market.
Local manufacture and sales of 32 watt fluorescent lamps. Not yet available.

Local manufacture of windows with low-emissivity glass. Current sales are low, technology is imported.
Sales of imported energy-efficient commercial refrigerators. Not yet available.
Sales of imported efficient wood burning stoves. Current sales are low.
Increased sales of solar cookers and hot water heaters. Current sales are low.
Increased sales of imported energy-efficient refrigerators. Current sales are low.