(Adds quote from energy minister)
SANTIAGO, June 19 (Reuters) - Chile’s government has authorized local power producer AES Gener SA to transfer electricity back and forth with neighboring Argentina through one of its transmission lines, the company said on Friday.
AES Gener, a local unit of U.S. power group AES Corp , said the agreement will increase energy security and “improve the frequency levels of the system and backup capabilities when faced with emergencies like earthquakes and tsunamis.”
The Santiago-based company said the two-way transfer of electricity will help bring down costs and support the development of renewable energy sources.
“Chile continues to move forward on regional energy integration, which is key to guaranteeing the security of supply and developing the competitive advantages the different countries in the region have with their respective generation mixes,” said Energy Minister Maximo Pacheco. (Reporting by Anthony Esposito; Editing by Chizu Nomiyama and Meredith Mazzilli)