One of Chile’s priorities for the energy sector in 2019 will be the construction of transmission lines linking the country to both Peru and Argentina.

Javier Bustos Salvagno, the head of energy policy and outlook at the Ministry of Energy, has said that there is space for Chilean power demand to grow further and that one of the government’s next priorities will be interconnections with neighboring countries.

The government is in discussions with Peru to allow the development of cross-border transmission projects, he said at IJGlobal’s IJChile 2019 conference in Santiago on May 8.

In the case of Argentina, the countries are working on a study that will define five different options for the interconnected transmission lines. A private investor is already interested in leading the project, said Salvagno.

Chile's power market has become highly competitive in recent years, with low power prices and scarce power purchase agreements.

Besides international interconnections, the government's packed power policy agenda includes adding recognition for long-term flexibility of resources, changes to the regulation of transmission, introducing regulation for solid biofuels and rolling out a new regulatory framework for electric distribution.

(A version of this article first appeared in IJGlobal).

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