Will Chile's energy storage & electromobility Bill help decarbonization?

Chile’s Congress recently approved an energy storage and electromobility bill to further promote renewable energy and decarbonization. Although secondary legislation still needs to be codified, the bill will likely encourage the development of energy storage systems, easing some transmission system congestion.

Why does Chile have so much power?

The central Chilean region, where the power is mainly consumed, relies heavily on hydroelectric generation and high-priced thermal generators. Marginal costs are driven by high natural gas and oil prices, which exert upward pressure on spot prices at withdrawal nodes.

Who is Grupo Cerro?

About Grupo Cerro Grupo Cerro is a newly formed renewable energy company which aims to build a sustainable future by providing the Chilean system and customers clean, manageable power 24 hours a day. The company manages a portfolio of more than 280 MW of operating projects throughout Chile and a 1.3 GW development pipeline.

What type of electricity is used in Chile?

Renewable electricity here is the sum of hydropower, wind, solar, geothermal, modern biomass and wave and tidal power. Traditional biomass – the burning of charcoal, crop waste, and other organic matter – is not included. This can be an important source in lower-income settings. Chile: How much of the country’s electricity comes from nuclear power?

How will Chile's energy reforms impact the economy?

As these reforms take shape, they promise to significantly impact the overall sustainability and economic viability of the nation’s energy infrastructure. Chile has embarked on an ambitious journey towards energy transition, framed by its commitment to combat climate change and promote sustainable growth.

Why are electricity delivery restrictions increasing in Chile?

Electricity delivery restrictions are expected to increase as additional non-conventional renewable energy (NCRE) assets are added to the grid. The central Chilean region, where the power is mainly consumed, relies heavily on hydroelectric generation and high-priced thermal generators.