The key changes are: (i) allowing storage systems in operation to participate in capacity transfers, with the purpose of recognising the contribution of such facilities to the sufficiency of the system; (ii) for renewable plants with storage systems, it will be understood that the energy stored may come from energy produced by the generation unit of such plant or from the energy withdrawn
In 2023, Chile also enacted a new Law 21505 to promote energy storage and electromobility. It highlights the following measures: participation of pure storage systems in the electricity market, enabling the connection of infrastructure that combines generation and consumption, temporarily lowering the annual tax for electric and clean vehicle
This decree is expected to provide capacity payments based on the duration of storage projects as seen in the table below, adding an important source of revenue for a storage market that already benefits from one of the highest energy spreads in the world. In fact, batteries charged at nearly $0/MWh during the day in the sunny, northern desert regions of Chile, sell
Upcoming capacity payment and expected BESS revenues in Chile. All Chilean energy storage players, ranging from IPPs to PCS providers, are now closely awaiting the publication of the capacity market decree (DS N 62) expected in Q2 of 2024. This decree is expected to provide capacity payments based on the duration of storage projects as seen in
In 2022, Chile passed an energy storage and electromobility bill, which made stand-alone storage projects profitable, but the market is still expecting new rules on capacity
The Santiago energy storage system was the largest energy storage project in Chile in 2024, with a capacity of approximately two gigawatts.
The Ministry of Energy has submitted amendments to the current regulations on capacity payments to the Office of the General Comptroller, which include storage systems. This regulation was largely expected by the market, given the
In 2022, Chile passed an energy storage and electromobility bill, which made stand-alone storage projects profitable, but the market is still expecting new rules on capacity payment for storage projects, which are to be approved in 2024. Chile has also put in place an auction procedure to award public land for the development of BESS projects
In 2023, Chile also enacted a new Law 21505 to promote energy storage and electromobility. It highlights the following measures: participation of pure storage systems in the electricity market, enabling the
Supreme Decree No. 70 of 2023 (DS 70) has now been passed and introduces significant changes in the recognition and compensation of energy storage projects, law and tax advisory firm Garrigues said. The updated
Supreme Decree No. 70 of 2023 (DS 70) has been recently approved, modifying Supreme Decree No. 62 (DS 62), which regulates the capacity payment, also called sufficiency power, in Chile. This modification introduces significant changes in the recognition and compensation of energy storage systems and hybrid plants with storage capacity.
The Atacama desert region in Chile is a hotbed of solar and storage activity. Image: Elias Rovielo. Nine projects pairing solar or wind with energy storage submitted environmental impact assessments (EIAs) in Chile last month, totalling well over 2GWh of capacity, by companies including Engie, EDF and Sonnedix.
With 23 energy storage projects already approved, totaling an impressive 3,000 MW of capacity, Chile is at the forefront of innovation and efficiency in Latin America. During its recent participation in COP28 in Dubai, Chile not only reaffirmed its commitment to renewable energy, but also highlighted its focus on energy storage as a fundamental
Chile has passed new regulations around capacity market payments to energy storage, coinciding with a major project announcement from CJR and Sungrow. CJR and Sungrow to deploy 880MWh BESS EPC firm
"It''s likely that, within five years, we will have 3 GW energy storage capacity in Chile," says Sauma. "If battery technology keeps coming down in price, this can keep growing. The potential for the sector in Chile is very, very high." Battery costs have fallen by 90% in the last 15 years, and the cost of utility-scale storage projects is projected to fall by 40% by 2030,
Supreme Decree No. 70 of 2023 (DS 70) has now been passed and introduces significant changes in the recognition and compensation of energy storage projects, law and tax advisory firm Garrigues said. The updated capacity market regulations now explicitly address energy storage and provide a method for determining the payment for
Upcoming capacity payment and expected BESS revenues in Chile. All Chilean energy storage players, ranging from IPPs to PCS providers, are now closely awaiting the publication of the capacity market decree (DS N
Supreme Decree No. 70 of 2023 (DS 70) has been recently approved, modifying Supreme Decree No. 62 (DS 62), which regulates the capacity payment, also called
Energy Law (Law 20257) and reaffirmed, as a minimum, in 2012 by the National Strategy for the Energy Sector. The 2014-2018 Energy Programme aims at achieving a 45% renewable energy share for new electric capacity installed between 2014 and 2025. A quota obligation is hiles main support scheme for renewable electricity. The 2008
Supreme Decree No. 70 of 2023 (DS 70) has been recently approved, modifying Supreme Decree No. 62 (DS 62), which regulates the capacity payment, also called sufficiency power, in Chile. This...
As important flexible resources, independent energy storage devices can be employed to maintain the long-term abundant capacity of the renewable-dominated power system. However, the investment recovery of independent energy storage devices is almost impossible to achieve, which limits their development and application. Therefore, this paper focuses on the capacity
With 23 energy storage projects already approved, totaling an impressive 3,000 MW of capacity, Chile is at the forefront of innovation and efficiency in Latin America. During its recent participation in COP28 in Dubai, Chile not only
High-Energy Aqueous Magnesium Ion Batteries with Capacity-Compensation Evolved from Dynamic Copper Ion Redox. Shuxin Zhang, Shuxin Zhang. School of Chemistry and Chemical Engineering, Shanghai
The Ministry of Energy has submitted amendments to the current regulations on capacity payments to the Office of the General Comptroller, which include storage systems.
Chile has enacted the Renewable Energy Storage and Electromobility Law, which will compensate standalone storage projects for injecting electricity into the grid and being available at...
Supreme Decree No. 70 of 2023 (DS 70) has been recently approved, modifying Supreme Decree No. 62 (DS 62), which regulates the capacity payment, also called sufficiency power, in Chile. This modification introduces significant changes in the recognition and
Chile has passed new regulations around capacity market payments to energy storage, coinciding with a major project announcement from CJR and Sungrow. CJR and Sungrow to deploy 880MWh BESS EPC firm CJR Renewables and inverter and battery energy storage system (BESS) manufacturer Sungrow will together deploy a 200MW/880MWh BESS
The number of ongoing and planned energy storage projects in Chile reached 85 by August 2023, with their capacity totaling 6.4 gigawatts (GW), PV Magazine reports. Sixty projects with a total capacity of 4.7 GW are already under construction, including 50 projects totaling 3.9 GW, which will be put into operation in the period from 2024 to 2026.
Moreover, the lack of an ancillary services market in Chile discourages shorter duration batteries (1-2 hours) as seen in the US and Europe. The general industry consensus is to maximize the availability of the battery and focus on 2-3 revenue streams instead of 4 to 5 (e.g., energy arbitrage, capacity payment, and frequency reserve).
In fact, batteries charged at nearly $0/MWh during the day in the sunny, northern desert regions of Chile, sell energy at night for over $100/MWh. Although projects such as Engie’s BESS Coya are already enjoying these large spreads, this capacity payment will partially de-risk Chile’s dependence on volatile, but still profitable, merchant revenues.
With transmission lines at overcapacity and permitting delays slowing the development of new grid infrastructure, battery energy storage systems (BESS) have surged as a profitable alternative for Chilean power producers.
This momentum is reflected in the data: AMI estimates that there is a 7.7 GW pipeline of BESS projects in Chile, far and away the most advanced front of the meter (FTM) storage market in Latin America. 1 Only 505 MW of BESS projects are currently operational in the entire region.
All Chilean energy storage players, ranging from IPPs to PCS providers, are now closely awaiting the publication of the capacity market decree (DS N 62) expected in Q2 of 2024.
Energy-Storage.news’ publisher Solar Media will host the 3rd annual Energy Storage Summit Latin America in Santiago, Chile, 15-16 October 2024.
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