The National Electrical Coordinator must incorporate into the operation programming the withdrawal program that is communicated to it by the owners of the storage systems
On May 31, 2024, the Comptroller General of the Republic (CGR) took note of Supreme Decree No. 70 (DS No. 70) that modifies Supreme Decree No. 62 of 2006 that approves the “Regulation of power transfers between generating companies established in the General Law of Electrical Services” (DS N°62).
This fact represents a new step in the promotion of storage systems and renewable energies in the country, since DS No. 70 includes stand-alone storage systems and defines the methodologies, procedures and criteria applicable to determine the transfers of power resulting from the coordination of the operation.
How do we get here?
After analysis by experts and receiving more than 400 observations and comments from the sector at the beginning of 2023, the Ministry of Energy decided not to continue with the processing of DS No. 3 and, instead, presented modifications to DS No. 62 in July 2023.
Therefore, it was decided to maintain the current rules that determine the payment for power in consideration of the technology used and simply make changes to the aforementioned DS No. 62.
The main modifications to DS No. 62 refer to:
a) Recognize the payment of capacity for pure or stand-alone storage systems, that is, those independently operating storage systems not associated with generation plants.
b) Promote storage, by establishing a transitional standard that ensures for 10 years the recognition of the sufficient power of storage units, both stand-alone systems and those linked to generation plants, establishing incentives for those that have more hours of capacity.
In this way, the initial power of an energy storage system (SAE) or of the storage component of a “Renewable Plant with Storage Capacity” (CRCA), will correspond to the multiplication between the maximum power of said component or system and the percentage of “initial power recognition” according to the following detail:
The methodology for calculating the initial power of the SAE will be applied according to the contribution to the load curve of the result of the optimization at a daily level that allows reducing the differences in maximum and minimum demands of the system.
In those cases of storage components or stand-alone systems whose capacities are fractions of hours, the percentage recognition will be determined from the previous table, making a linear approximation between the corresponding hours.
c) In the case of CRCAs, the recognition of sufficiency power will be done separately between the generating unit and its storage component. In this sense, the remuneration will be calculated considering the sum of the remuneration of the renewable plant plus the storage component, each with its own methodology for determining its contribution.
d) It is recognized with respect to the SEA or the storage component of the CRCA that withdrawals made for charging purposes will not be considered power withdrawals.
e) Supreme Decree No. 125 of 2017 of the Ministry of Energy is modified, which approves the regulations for the coordination and operation of the National Electric System, in order to recognize the SEA and CRCA that are in operation as participants in power transfers.
For this purpose, the National Electrical Coordinator must incorporate into the operation programming the withdrawal program that is communicated to it by the owners of the storage systems, also recognizing for the CRCA the modes of “loading”, “discharging” and “ direct generation”.
For more information on these topics you can contact:
Antonio Rubilar | Partner, Public Law and Regulated Markets | arubilar@az.cl
Alejandro Montt | Mining and Projects Director | amontt@az.cl
Federico Rodríguez | Energy and Infrastructure Director | frodriguezm@az.cl
