Chile issues new regulation for capacity payment to encourage investment in energy storage
Chile -
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 need of enabling investments in battery storage.
Over the last two years, the Ministry of Energy has conducted public consultations on the rules applicable to capacity payments, and at the end has opted to maintain the current rules, which determine such payments in consideration of the technology used. The amendments refer to the following:
- Recognition of capacity payment for pure or “stand-alone” storage, i.e. those storage facilities not associated with generation plants.
- A transitional rule is established to promote storage and ensure that storage units are recognized as having sufficient capacity for a period of ten years, thus favoring those systems having more time of storage, as follows:
- In the case of hybrid plants (i.e., generation and storage facilities), the recognition of capacity will be made separately between the generating unit and its storage component. In this regard, the requirement to have independent meters is incorporated to quantify the individual contribution of each equipment.
- The regulation is modified to allow the withdrawal of energy for the loading of the storage systems. To this effect, the National Electric Coordinator shall incorporate in the operation schedule the withdrawal schedule communicated by the owners of the storage systems.
The new rules are expected to be approved by the Comptroller within the first months of 2024.
Contacts
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+56 2 29419000
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+56 2 29419000