COP22, Marrakesh, Rainer Schröer; GIZ Chile, 15.11.2016

GIZ Energy Program 4e - Chile

Chilean electricity market

Business models :

• Energy Self Supply

• Bilateral PPAs

• Public Auctions

• Spot Market

Totally liberalized electricity market

No subsidies for electricity prices nor utilities

All technologies have to compete with each other

Yearly increase of electricity demand ~ 4-5%

Generation dominated by fossil fuels and large hydro (2015: 58% fossil and 33% hydro)

Coal

Wind

Diesel

Others

Gas

Hydro

Biomass

Total GHG

GHG emissions and electricity generation

Source: Chilean Energy Ministry

Source: GIZ/MinEnergía, 2014

Realistic (conservative) RE potentials: 1.865 GW (solar, wind, hydro)

At least 70% of

electricity

generation from

RE

At least 60% of

electricity

generation from

RE

Climate Goal (NDC): 30% lower CO2 intensity by 2030 (base: 2007)

• Funded by the German Ministry of Environment (BMUB)

• Implemented in cooperation with the Chilean Ministry of Energy and other institutions

IKI** - Solar

Solar energy to generate

electricity and heat – self

supply

(2013 – 2017)

DKTI* - Solar

Development of large

scale solar energy

(2014 – 2019)

IKI** - KWK (CHP)

Cogeneration for industrial

and commercial

applications

(2015 – 2019)

NAMA Support Project

Self-supply renewable

energy systems

(2015 - 2019)

Program 4e (current projects)

* DKTI: German Climate and Technology Initiative

** IKI: International Climate Initiative

Pillars of GIZ 4e activities

Information

Potential

Analysis

Regulatory

Framework

Market

Development

Capacity Building

Sustainable Energy

Potential

Analysis

Information Information platforms, resource data, installation guidelines, market

information, conferences, seminars and publications

Regulatory

Framework

Market

Development

Capacity Building

Sustainable Energy

• Realistic

calculation of

potentials for

RE-integration

• Verification of

results by iea

• RE “round table”

discussion

• Increase

system

flexibility: grid

codes, flexible

power plants,

forecast, etc.

• Regulation for

“Net Billing”

• Business models

(ESCO)

• Public Solar

Roof Program

• Innovative solar

applications

• Feasibility

studies

Consultancy, solar training laboratories, Train-the-trainer for technicians,

international experience exchange, pilot projects

Pillars of GIZ 4e activities

Example: Detailed analyses of realistic RE integration potentials

Viability Technical level

Energy Planning Economic level

Natural Resources Physical level

Measuring stations

and meteorological

models

Hydro atlas & water rights

Solar atlas

Wind atlas

Long term expansion scenarios

(2020-2035), for generation

and transmission

Dynamic analyses

Unit commitment

Adjustments of the operation

Short term

Measurement platform Geo

-referen

ced in

form

ation

Renewables GIS &

Spatial Analysis Tool (MAE)

Free access to

ols

Favorab

le sites

Objective information on the physical, economic and technical feasibility for decision makers

Roundtable on RE integration

Dialogue on costs, scenarios, impacts

Regulatory Agenda to increase flexibility

- RE forecasting - Flexible fossil power plants - Flexible reserves - Lift transmission

restrictions - Real time grid operation

Impact of system

flexibility

Wind + PV share

Situation in Chile

International benchmark

Without restrictions

Annual system cost (investment and operation) [MM USD]

Key Results

- 20% Wind + PV are cost efficient in today’s systems

- 30% Wind + PV can be efficient with transformation to international standards

International validation

Example: Stakeholder dialogue and regulatory improvements

Example: Developing innovative solar applications

Power to Gas

•Hydrogen production for industrial applications, especially in the mining sector

Power to Water

•Desalinization and industrial water treatment, as well as sea water pump storage

Power to food

•Algae production, aquaponic solar greenhouse, agro-forestry

Power to cooling

•Industrial solar cooling with solar thermal plants in combination with absorber-cooling systems

Power to Chemistry

•Hydrocarbons and solar metallurgy

Solar PV

Hydro < 20 MW

Wind

Biomass Biogas

Installed capacity of non-conventional RE

Cap

acit

y [

MW

]

Increasing variable RE shares in Chile

Solar PV

Hydro < 20 MW

Wind

Bioenergy

Share of Electricity from non-conventional RE

Sh

are

of

RE

ele

ctr

icit

y [

%]

Total NCRE

Recognized by Law

Quota obligation

Source: ACERA, 2016

Source: ACERA, 2016

~14%

Evolution of electricity prices

Northern Grid

SING

Central Grid

SIC

Source: CNE based on CDECs, 2016

Increasing number of RE in distribution system (Net Billing)

Mo

nth

ly n

ew

in

sta

lla

tio

ns

Ac

cu

mu

late

d in

sta

llatio

ns

Registered installations

Accumulated

Monthly

installations

Tendency of

monthly

installations

Total installed capacity of 4.3 MW by 09/2016.

First LA CSP plant (110 MW) 0 => 4.3 MWp (Net Billing) 335 => 957 MW Wind parks

New EE-Law and Co-Gen.

Local developed CST plants

First LA Geothermal plant

6.7 MWp =>1,275 MWp PV in operation

Very dynamic development since 2014…..

.…without subsidies

Chile’s Renewable Energies and Energy Efficiency Program – 4e Commissioned by: German Ministry of Environment - BMUB

Counterpart: Ministry of Energy Chile

Objective: GHG Emission Reduction

For more information visit: www.4echile.cl

Thank you for your attention!

http://www.4echile.cl/

Additional Slides.

(During discussion when needed)

Chilean Energy marked actors

Market Actors

Generation

Transmission Distribution

Regulated clients

Evolution of Distributed Generation framework in Chile

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Law 19.940 Right to connect

projects

Year Energy per year Contract duration

Percentage-

RE

in %

Average Energy

Price USD / MWh

2013 3.900 GWh 2013-2024 9% (Small hydro)

128,9

2014 11.955 GWh 2016-2033 24% 108,1

2015 1.200 GWh 2017-2036

100% 79,3

2016 12.430 GWh 2021-2040/

2022-2041

52% 47,5

Quelle: ACERA

Chile’s technology-neutral electricity auctions for captive consumers

Renewable Energies:

42 % (~ 15 % Variable)

Generation

Source

In Operation

Biomas 417 MW

Biogas 53 MW

Wind 947 MW

Small Hydro

(< 20 MW)

433 MW

Solar PV 1.113 MW

June 2016

Current participation of RE in Chile’s electricity matrix

Example: Support to Public Solar Roof Program

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110

USD

/Wp

Tamaño Proyectos o de Cartera de Proyectos (kWp)

Resultados de licitaciones Programa Techos Solares Públicosa octubre de 2015 (US$/kWp, sin IVA)

1,56

1,31 1,51

1,72

1st tender

2nd tender

Tender results of the Public Solar Roof Program by 10/2015 (USD/kWp,

without VAT)

Size of tendered project or group of projects (kWp)

• Contribute to PV market maturity: transparent information on PV prices and providers, best practices

• Gather experiences to support evolution of regulatory framework