In 2002, Chile consumed 41.8 billion kilowatthours (Bkwh) of electricity, up 4.5% year-on-year. Chile’s rapidly expanding economy has significantly boosted electricity consumption, which grew at an estimated annual rate of 7.2% between 1993 and 2002.
Power generation in Chile also increased in 2002, reaching 43.0 Bkwh. Hydropower accounted for 52% of all electricity generated in Chile, while thermal sources (including oil, natural gas and coal) provided 46%. Other renewables, mainly wind, accounted for the remainder. As of December 2002, Chile’s total installed electric generating capacity was 10.3 gigawatts (GW), of which thermal-generated electricity accounted for 59% and hydropower for 41%.
Historically hydropower has been Chile's single largest power source, at times comprising over half of the country's installed electric generation capacity and production. In 1995, for example, hydropower supplied 72% of Chile’s power and accounted for 59% of installed electric capacity. Droughts, however, have periodically curtailed hydropower production, causing supply shortfalls and blackouts. In response, the Chilean government began to diversify its energy mix to become less reliant on hydropower in the 90s, mainly by building natural gas-fired power plants.
