Chilean environmental regulator will sanction Codelco for emissions violations

Chile Government proposes that electricity all investment in social initiatives

The announcement in the last presidential public account of the entrance to the Congress of a decarbonization project to facilitate investments that allow the end of thermoelectricas For coal in 2035 or before sigULly start lifting the first doubts. On Monday of last week the Ministry of Energy met with six guilds in the sector to expose the main contents of the articles of accelerated decarbonization, thus initiating the prelegislative work of the initiative.

2035 would be the deadline for the removal of carboneras

In the appointment, led by the Minister of Energy, Diego Pardow, the portfolio presented details of the text A Generators of Chile, Sidewasher, Transmitters of Chile, GPM, ACESOL and the Renewable Generation Association, AGU. Considering that the goal is to enable the conditions for the removal of coal centrals to 2035, it seeks to make the development of generation projects, central reconversion, central reconversion, viable, storage and/or transmission works in the national electrical system, SEN, that allow progress in that line.

Specifically, after a application, the Ministry of Energy would present proposals for candidate projects to an interministerial commission that will be responsible for selecting prioritized projects, which would be between four or five. The chosen ones can benefit – for example – that permits or authorizations may be granted via the affidavit of the holder.

Consulted by DF, Pardow described the meeting as positive and said: “Legislative work is key if we want to advance quickly in Congress. The Executive’s expectation is at least to have a first iteration of the project portfolios to be incorporated. That means that the law should be approved at the end of October no later than and, therefore, prelegislative work is fundamental. “

Precisely, according to Fuentes, the portfolio had sincere its intention to enter the bill in July. However, there is a point that already generates doubts. Knowing conversations argues that the holders of initiatives that are interested in using this mechanism must meet requirements Like – among others – executing projects of a repository of social energy initiatives that benefit communities for an amount equivalent to 5% of the investment.

In the detail, it will be the ministry that defines the projects to be promoted of this repository that will be integrated by rural electrification and community generation initiatives. The formula in mind is that the government design these social initiatives, they are responsible for conversations with the municipalities that merit, but those who execute the works will be the headlines.

In this regard, Pedow details to this medium that the articulated to be presented has incentives for the realization of the projects but also obligations for companies to generate energy solutions in the places where these projects will be placed: “Therefore, the bill will contain A standard that will force companies to allocate 5% of their investment in, for example, photovoltaic plants for a group of neighbors living in that place. “

But although the project is valued, in the guilds there were doubts. The executive director of generators of Chile, Camilo Charme, sees that the initiative takes interesting elements to debate. However, he considers that Chile has advanced deeply in the energy transformation of the generation matrix and that “It was time to seriously talk about the safety and sufficiency conditions of the electrical system so that the energy transition can advance in a responsible and safe way.”

“Unfortunately to date, there is no clarity of the methodology of defining why it is 5% and how the projects that will finance that 5%” will be defined “comment on the formula.

For the executive director of the Association of Transmitters of Chile, Javier Tapia, it is necessary to learn more about the bill to have a complete opinion. However, in principle, he says that they think “Introducing a centralized mandatory investment mechanism to finance social initiatives may not properly reflect the particularities of transmission projects.”

According to argument, this type of works has territorial and constructive logic very different from generation or storageand its viability is not always associated with directly adjacent communities. Therefore, Tapia claims to expect that the mechanism proposed considers these differences. “Beyond that, we have certain doubts about whether this way of managing socio -environmental risks is really more effective than other alternatives,” he added.

From Acera they value the announcement, but warn that it will be essential to review the final project of the project to evaluate its effective applicability. In that line, they consider that regulatory acceleration mechanisms are not limited exclusively to a limited set of projects, but are implemented with a transverse approach. On 5% contribution of project -regular companies, the executive director of the guild, Ana Lía Rojas, argues that you should carefully look as a sign for private.

“The eligible project selection mechanism must focus on the objective of seeking this law, which is to accelerate the withdrawal of coal and this must be executed through a technical criterion, and that does not imply a transaction of more contributions, contributions less. Now, the mechanism would act as a replacement of the economic compensation required within the processing of a RCA, again, again, again, again, again The criteria for the selection of eligible projects to accelerate their permits should not deviate for this 5%mechanism, “he said.

Mauricio Utreras, executive director of GPM, said they consider key that in the future bill “equitable criteria are proposed that allow promoting generation initiatives and small and medium -scale storage, throughout the territory, together with promoting technological diversification and the entry of new investments. “

Meanwhile, the executive director of AG, Rafael Loyola, said that in an initiative such as the one exposed, “we believe that the proposed percentage as a contribution has consistency with the expected profitability of the projects and that does not become a requirement that puts the attraction of the necessary investments for the energy transition of Chile. “