Thermo generation will increasingly replace hydro output as the main power source on Chile's central SIC grid over the next few months due to a continued fall in hydrology at the country's dams, Chilean investment bank Celfin said in its latest energy report.
The end of snow melt season and the start of summer will mean increased dependence on the use of fossil fuel based generation, according to the bank.
Thermo sources accounted for 50% of all December SIC power output, up 15.9% on November and 96.5% compared to December 2009.
LNG and coal proved to be the most commonly used fuels over December. Celfin expects the use of more expensive fuels like diesel and LNG to increase over the coming months, keeping power costs high.
By comparison, hydro generation contributed around 47% of the power produced on the SIC in December, down 7.2% from November and 25.2% year-on-year.
On the northern SING grid thermo continues to provide 100% of all energy output, with coal accounting for over 50% of production.