In Chile no single element has had a greater impact on productivity than energy, and particularly energy costs. Electricity costs have doubled in the last seven years, according to the Chilean Energy Ministry. At the same time, a persistent drought has tested the country’s hydroelectric capacity — hydropower accounts for 32 percent of the electric matrix— shifting generation toward more diesel and coal. Add to this the fact that Chile imports around 97 percent of its fossil fuels, and some observers fear the country is headed for a crisis.

In Search of a Rainmaker: Energy Policy in Chile