The new Chilean government has presented guidelines to accelerate investments in renewable energy, expand storage systems, and modernize the electricity grid, focusing on energy security and industrial competitiveness.
The general outlines of the strategy were released by members of the Chilean government's energy team and by public sector officials linked to the country's electricity system.
According to projections associated with the new administration's energy plan, the country intends to significantly expand the use of BESS (Built-in-Solid Energy) to ensure stability in the electrical system in the face of growth in solar and wind power generation.
The estimate is to reach approximately 9.000 MW of storage capacity by 2027 and approximately 14.000 MW by 2030, according to projections presented by members of the energy policy team linked to the new Chilean government.
The strategy stems from the diagnosis that the accelerated expansion of renewable energy generation requires new solutions to ensure the reliability of the electricity grid.
Data from the National Electricity Coordinator, the operator of Chile's electricity system, indicates that the country is already experiencing growth in the implementation of energy storage. Currently, there are more than 1.700 MW of batteries in operation and approximately 600 MW in the testing phase, according to data released by the agency responsible for coordinating the national electricity system.
Regulatory reform and incentives for investment.
Among the new government's priorities is the review of regulatory processes related to energy and mining projects. The agenda includes simplifying licensing procedures and reducing administrative steps that, according to the government team, can delay investments in energy infrastructure.
The proposal seeks to increase legal certainty for investors and accelerate the commissioning of new renewable energy generation and storage projects in the country.
Stimulating industrial electricity demand
The energy plan also envisions stimulating industrial sectors with high electricity consumption, including data centers, green hydrogen production, and water desalination projects, as a way to take advantage of the surplus of renewable generation projected for the coming years.
In the case of green hydrogen, the official strategy considers Chile's potential to become an exporter of the low-carbon fuel, taking advantage of the solar and wind resources available in the country.
Energy transition and coal reduction
Projections associated with the country's energy planning indicate that the expansion of renewables combined with energy storage could allow for the gradual phasing out of coal-fired power generation over the next decade, as new sources of clean energy come online in the system.
Recent reports from the energy sector also indicate that approximately 95% of the new capacity planned for the Chilean electricity system is associated with renewable or storage projects, reflecting the expansion of solar, wind, and battery energy in the country's investment portfolio.
The guidelines began to guide Chile's energy policy at the start of President José Antonio Kast's administration, who took office this week.
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