Chile proposes tougher 2030 NCRE generation target
Chile’s energy ministry proposed establishing a goal of obtaining 60% of electricity from non-conventional renewable energy (NCRE) sources by 2030, up from a target of 40% currently in a bill in congress.
Public and private sector officials discussed the draft legislation this week.
The ministry also proposes a target of obtaining at least 30% during each time block, up from 20% in the original text of the bill and designed to help spur investment in energy storage.
“We’re basing these goals on the various electricity market projection studies available,” energy minister Diego Pardow was quoted as saying by local daily El Mercurio. “Therefore, this measure delivers a clear signal, based on evidence, that the government is geared to decarbonizing the matrix.”
The bill – which also establishes an electricity traceability system and a measure to spur distributed generation – is in the lower house. If given the green light, it would then go to the senate.
First presented in 2021, the bill, designed to also support greater flexibility and ease transmission pressure, is not a panacea but a “first step in the right direction,” Pardow told the lower house’s energy and mining committee.
ENERGY STORAGE
An energy storage law recently entered the statute books, opening the door for remuneration for grid injections made by standalone units, that is, those not part of a power plant. An objective is easing dispatch pressure by allowing storage units to absorb electricity during peak production periods and, later, pump it back into the grid.
NCRE PRODUCTION, PROJECTS
From January-October, NCRE plants accounted for 32.2% of generation, far above an existing binding target of 20%.
A rapid buildout of NCRE plants in Chile has strained some parts of the grid. Some generators are being impacted by curtailment and price decoupling. Public officials, who have established a working group with the private sector, said this week they were aware of – and addressing – the challenges. A transmission bill is due to be presented next year.
Along with new grid infrastructure and long-term planning, market and regulatory reform is seen as needed to accompany and support the energy transition in Chile, which aims to become carbon neutral by 2050.
Chile was ranked by Climatescope as the most attractive emerging market for energy transition investment. An online assessment tool produced by investment research platform BloombergNEF, Climatescope considers market fundamentals – where Chile scored strongest – as well as opportunities and experience.
Just over 17GW of NCRE and storage projects were in the environmental evaluation phase in Chile in October, according to a report from renewables chamber Acera. Of the total, 7.32GW correspond to solar PV, with wind accounting for 6.60GW. Officials were also evaluating 2.08GW of solar-storage hybrid, 600MW of solar thermal, 560MW molten salt storage, 57MW battery storage, 55MW mini run-of-the-river hydropower, and 30MW biomass.
Replacing the roughly 5GW of coal-fired capacity in Chile will require around 22.5GW of new projects, according to Acera estimates.
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