Fitch outlines Chile's New Year energy sector challenges

Wednesday, December 24, 2014

Modifying tender processes to avoid blocks failing to attract bids and containing price increases are among challenges Chile's energy sector will face in 2015, according to a report by Fitch.

Delays in studies outlining future transmission network investment and major transmission hurdles relating to the implementation of the 25/20 nonconventional renewable energy (NCRE) law will also weigh on the sector, the rating agency said.

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The agency's 2015 overall rating outlook for the Chilean energy sector is stable, the same as in 2014.

Fitch also sees Chile's distribution and transmission businesses maintaining a limited risk profile.

The local transmission business has "exceptionally stable operational generation," Fitch said.