Chile is one of the most attractive markets in Latin America, with political stability, natural resources and healthy economic growth all adding to its appeal. But in terms of energy, Chile's geography and considerable distances between urban areas and potential sources of power create challenges in the electricity market. Hydroelectricity accounts for around a third of production, but it is a sector shrouded in regulatory uncertainty and lengthy appeals processes. This quarter sees talk of new hydro projects, but that doesn't mean that these proposals will become a reality any time soon. In the thermal sector, gas-fired projects are gaining ground, and these will appeal because of their reliability when compared to renewable sources of power. That said, renewable energy will continue to play an increasing role in the electricity mix, with solar and wind power projects particularly popular.