The Senate announced that the bill was passed “without changes and unanimously” last week (20 October), and is now ready to be enacted into law. The final vote comes two weeks after it passed a preliminary vote before being put in front of the finance committee, which Energy-Storage.news Contact online >>
The Senate announced that the bill was passed “without changes and unanimously” last week (20 October), and is now ready to be enacted into law. The final vote comes two weeks after it passed a preliminary vote before being put in front of the finance committee, which Energy-Storage.news covered at the time.
The bill seeks to increase the country’s use of renewable energy particularly through the use of energy storage as a way to get around grid congestion, which currently means that a majority of renewable energy is dumped.
The bill will allow standalone energy storage systems to receive income from dispatching their energy and power in the country’s National Electric System market. It is hoped this will help foster the growth of a variety of storage technologies including batteries, compressed air, and more, a media statement said.
On the EV side, the bill will exempt owners of EV and hybrid vehicles from the ‘circulation permit’ for two years, followed by six years of a reduced charge before users pay the full permit during year nine. EVs will also be able to participate in electricity markets as distributed energy resources (DERs).
The majority of energy storage projects in Chile are being co-located with solar PV,which you can read more about here, but currently the country only has 64MW of utility-scale battery storage operational.
Several large projects have been proposed recently or progressed recently so this is expected to increase substantially. The local subsidiary of US-based AES Corporation wants to convert a coal plant into 560MW of molten salt-based energy storage, Canadian Solar recently won a tender to deploy solar-plus-storage with 1GWh of battery storage, while local utility Colbún recently submitted plans for a project with 1.2GWh of co-located battery storage.
In addition, the country is working on combining electromobility and energy storage technologies to improve the efficiency of the grid. Batteries of EVs can be used to store electricity and inject power into the grid as and when required.
The bill proposal was submitted by the Ministry of Energy in December 2021 with the aim to expand the participation of renewable energies in the electrical matrix by promoting technologies for their storage. This will allow the acceleration of the retirement of coal-fired power plants, providing greater security to the electrical system and supporting the decarbonisation of the energy matrix. It also aims to enable the efficient connection of renewable generation and consumption systems to the electricity system, and promote the sale of electric and clean vehicles.
It amends various articles of the ley General de Servicios Eléctricos or General Law of Electricity Services to allow pure storage systems (not associated with power plants) to sell power in the short-term electricity market of the national electric system.
It amends the definition of generation-consumption in Article 25 of the General Law of Electricity Services. Under this, any manufacturing facility (such as hydrogen production or water desalination) with its own power generation plant based on renewables will be charged for their net power consumption from the grid. The power project should be connected to the electrical system through a single connection point for power withdrawal and injection into the grid. It aims to offer greater transparency for the development of infrastructure that has its own generation capacity.
With regard to electromobility, the law offers monetary incentives to electric and hybrid vehicles with external electric recharging as well as for others qualified as zero emission vehicles by the exempt resolution of the Ministry of Energy, whose year of manufacture corresponds to the publication of the law, to subsequent years, or to the year prior to it. The following incentives are proposed for these vehicles:
The annual tax for circulation permits depends on the valuation of the vehicles. Given that the valuation of these vehicles is on an average double that of internal combustion engine vehicles, their tax liability is around 65 per cent higher than that of conventional vehicles. For this reason, a transitory reduction in their annual tax liability has been introduced under the new law to keep their cost similar to that of equivalent conventional vehicles. The rebate percentage applies for a period of eight years.
For the first two years, there is a total exemption from the annual tax (counted from February 1, 2023), and then, for the next six years there will be a gradual increase in the annual tax: 25 per cent during the third and fourth years; 50 per cent for the next two years, 75 per cent for the next two years and 100 per cent from ninth year onwards.
The initiative enables EVs to participate in the electricity market as storage equipment, receiving remuneration for injecting energy into the grid, and the use of their batteries as stationary storage equipment for the same purpose. This will increase the profitability of EVs.
Chile is also working on other legislations as part of its strategy to achieve carbon neutrality by 2050. These include one that prohibits the installation and operation of coal-fired thermoelectric power plants (that are less than 30 years old as on December 31, 2025), and another that prohibits the injection of electricity from fossil fuels into the country''s national electric system from 2030. Chile''s multidirectional approach to achieve its decarbonisation target has been appreciated by the various stakeholders.
Chile''s congresshasunanimously approved a bill promoting investments in energy storage and electric mobility in the country. The legislation is aimed at addressing power transmissioncongestion and assist in closing of all coal power plants by 2030s.
The energy and mining committee in the upper house of Chile legislaturevoted unanimously in favor of the energy storage and electro mobility bill early this month.
The public billauthorizes capacity payments for standalone storage systems that provide power or function as spare capacity. It facilitatesintermittent renewable energy to be stored and dispatched during peak periods or at night providing flexibility and security to the system.
On e-mobility front, the billexempts electric vehicles from annual road taxes for two years. The exemptionwould cover 75 percentof road taxes in years three and four, 50 percentin years five and six, and 25 percentin years seven and eight, as reported by Argus Media.
The legislation will also allow EV owners to use their car batteries to participate in the electricity market, incentivizing the adoption of electric vehicles. Owners would be remunerated for using the battery of their vehicle for storage and injecting electricity into the grid.
Chile has committed to achieving net-zero carbon emissions by 2050, which will require an outlay of billions of dollar, including an estimated US$30bn in generation, transmission and storage alone.
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