The Chilean Energy
Regulatory
Framework
Comisión Nacional de
Energía
Andrés Romero
Secretario Ejecutivo
Comisión Nacional de Energía
Intro
Generation
The Chilean electric industry is divided
in 3 segments
g
Transmission
Distribution
Intro
The cost and payments system is guided by
a clear and balanced regulation.
g
Generators
Transmission
System Costs
Transmitters
Generation Costs +
Transmission
Distributors
Free Price
Non Regulated Clients
Regulated Clients
Generation Costs
+
Transmission
+
Distribution
Added Value
The electric system of Chile
The Interconnected and minor systems
y
installed
Capacity of Chile: 19.030 MW (Apr. 2015)
Interconnec
tion
planned for
2017 / 2021
Source:
The electric system of Chile
Electricity
y consumption
p
p
per person
p
(MWh)
vs. GPD per person (US$) (2012)
Fuente: EIU, EIA
Agenda de Energía (the Chilean Energy
Agenda)
According to the Chilean Energy Agenda presented by
the Energy Ministry on may 15th of 2014, one of our
greatest
t t challenges
h ll
are:
 The lack of competition presented by the energy
generation market.
 Non competitive long term contracts between
generators and distributors.
 Slow developing
i
of the transmission
i i
grid
i
Agenda de Energía (the Chilean Energy
Agenda)
For this reasons, among the objectives and goals of
this Government are:
A
25% diminish on the price of energy supply
contracts.
 Adding
more players to the energy industry.
industry
 Adjusting
the energy regulatory frame to better
and clearer standards.
Generation market opportuni
Energy supply contract tenders results
2006-2014
Average price per tender SIC
(indexed to Dic. 2014)
160
140
131,1
113,2
120
135,9
108,4
98,9
USS$/MWh
100
80
68,4
66,1
60
40
20
0
Procesos 2006 Procesos 2007 Procesos 2008 Procesos 2010 Procesos 2012 Procesos 2013 Procesos 2014 (13.206 GWh‐ (7.500 GWh‐año) (8.756 GWh‐año) (2.200 GWh‐año) (1.172 GWh‐año) (3.900 GWh‐año) (12.705 GWh‐
año)
año)
Contracts and demands
60.000
50.000
GWh‐año
40.000
30.000
42.151
20.000
34.737
34.702
35.322
39.967
36.604
37.943
33.144
31.120
25.511
10.000
18.113
15.177
12.227
10.878
10.877
10.877
2028
2029
2030
0
2015
2016
2017
2018
2019
2020
2021
2022
Supplied demand
2023
2024
Demand
2025
2026
2027
New energy supply contracts tender
Tender opening
Tender
opening
year
Awarding of Awarding
of
the contracts
Energy Energy
supply start
Energy Volume Volume
involved (GWh)
Contract lenght
Contract lenght
2015
2015
2017
1000
20 years
20 years
2015
2016
2021
12.500 (6.000 the first year)
20 years
60.000
50.000
G
GWh‐año
40.000
30.000
42.151
20.000
34.737
34.702
35.322
36.604
39.967
12.500
37.943
33.144
31.120
25.511
10.000
18.113
15.177
12.227
10.878
10.877
10.877
2027
2028
2029
2030
0
2015
2016
2017
2018
Supplied demand
2019
2020
2021
2022
Next short term tender
2023
2024
2025
Next long term tender
2026
Demand
Tender process
1. Developing of the preliminary
tender report by CNE
2. Developing of the tender terms
document
3. A year to present bids
4. CNE defines the maximum hidden
price.
5. CNE publishes a resolution with
5
the results and the contracts are
signed.
Contract elements
1.Private contract between generators
and distribuitors.
2. The contract last for 20 years.
3. The
3
Th price
i
is
i indexed
i d
d to
t the
th
offer and it can be adjusted
according to regulatory changes.
4
4.
Five years to begin the energy
supply, with the chance of
delaying it for 2 years, if
external problems are proven.
5. Controversy solving mechanism:
private arbitrage
In short
The energy supply contracts tenders give the
opportunity to acquiring a 20 year contract and
materialize new electric generation investments
investments.
 Contracts
 The
for aprox. 13.500 GWh will be auctioned.
contracts last for 20 years.
 Tender
first call on may 2015.
 Tender
closes on may 2016.
 Energy
supply begins on jan. 2017 and jan. 2021.
Transmission market opportuni
Chilean Transmission Scenario
 Every
year, the Energy Ministry determines the
transmission system’s expansion plan.
 The
biggest lines presented on the expansion plan
are auctioned in open, public and international
processes.
 The
tenders are awarded to the lowest price and
they receive a fix payment for their offer, for a
period of 20 years.
Agenda de Energía (the Chilean Energy
Agenda)
 New
energy transmission regulatory framework to be
announced before June 31th
 The
two main electric systems (SIC – SING) will be
interconnected before 2018.
Project opportunities
SIC
Supply start
Building years
Proyect
Investment
cost(ref.) M US$
OMAC (Ref.)
US$
Jan.2018 – July
2019
24 and 42 months
Nueva Diego de
Almagro Selective
Substation; New
Line 2x22 kV
between SUBs
Nueva Diego de
Almagro – Cumbres
and a
Autotransformer
1x750 MVA 500/220
kV
Proyect
59.550
893
Investment
cost(ref ) M US$
cost(ref.)
OMAC (Ref.)
US$
174.000
2.610
Interconnection
Supply start
Building years
Jan.2018 –
Jan.2020
24 and 54 months
New 2x500 kV 1500
MW line between
SS Los Changos
and SS Nueva
C
Crucero
Encuentro;
Autotranformer
banks 2x750 MVA
500/220 kV on SS
Nueva Crucero
Encuentro;
Autotranformer
bank 750 MVA
500/220 kV at SS
Los Changos and
M
M
The
Chilean
Energy
Regulatory
Comisión Nacional de
Energía
Framework
Andrés Romero
Secretario Ejecutivo
Comisión Nacional de Energía