5 andres romero the chilean energy regulatory...
TRANSCRIPT
The Chilean EnergyThe Chilean EnergyRegulatory
Comisión Nacional de Energía
Framework
Andrés RomeroSecretario Ejecutivo
Comisión Nacional de Energía
Intro The Chilean electric industry is divided in 3 segmentsg
Generation DistributionTransmission
Intro The cost and payments system is guided by a clear and balanced regulation.g
Transmitters
Generators Transmission System Costs
Distributors
Generation Costs + Transmission
Generation Costs+
Distributors
Free Price
Non Regulated Clients Regulated ClientsTransmission
+Distribution Added Value
The electric system of Chile
The Interconnected and minor systems installed yCapacity of Chile: 19.030 MW (Apr. 2015)
InterconnecInterconnection planned for 2017 / 2021
Source:
Electricity consumption per person (MWh)
The electric system of Chile
y p p pvs. GPD per person (US$) (2012)Fuente: EIU, EIA
Agenda de Energía (the Chilean Energy Agenda)
According to the Chilean Energy Agenda presented by the Energy Ministry on may 15th of 2014, one of our
t t h ll greatest challenges are:
The lack of competition presented by the energy generation market.
Non competitive long term contracts between generators and distributors.
i i i i Slow developing of the transmission grid
Agenda de Energía (the Chilean Energy Agenda)
For this reasons, among the objectives and goals of For this reasons, among the objectives and goals of this Government are:
A 25% diminish on the price of energy supply contracts.
Adding more players to the energy industry Adding more players to the energy industry.
Adjusting the energy regulatory frame to better and clearer standards.
Generation market opportuni
Energy supply contract tenders results 2006-2014
160
Average price per tender SIC (indexed to Dic. 2014)
113,2
131,1135,9
108,4120
140
68,4 66,1
98,9
80
100
S$/M
Wh
66,1
40
60
US
0
20
Procesos 2006 (13.206 GWh‐
año)
Procesos 2007 (7.500 GWh‐año)
Procesos 2008 (8.756 GWh‐año)
Procesos 2010 (2.200 GWh‐año)
Procesos 2012 (1.172 GWh‐año)
Procesos 2013 (3.900 GWh‐año)
Procesos 2014 (12.705 GWh‐
año)
Contracts and demands
50.000
60.000
40.000
30.000
GWh‐añ
o
34.737 34.702 35.322 36.604
42.15139.967
37.943
33.14431.120
25.511
10.000
20.000
18.11315.177
12.227 10.878 10.877 10.877
02015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Supplied demand Demand
New energy supply contracts tender
Tender opening Awarding of Energy Energy Volume Contract lenghtTender openingyear
Awarding of the contracts
Energy supply start
Energy Volume involved (GWh)
Contract lenght
2015 2015 2017 1000 20 years2015 2015 2017 1000 20 years
2015 2016 2021 12.500 (6.000 the first year)
20 years
50.000
60.000
30.000
40.000
GWh‐añ
o
34.737 34.702 35.322 36.60442.151 39.967 37.943
33.144 31.12025.511
18.11315.177
12.227 10.878 10.877 10.877
12.500
10.000
20.000
G
02015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Supplied demand Next short term tender Next long term tender 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. CNE publishes a resolution with the results and the contracts are signed.
Contract elements
1.Private contract between generators and distribuitors.
2. The contract last for 20 years.
3 Th i i i d d t th 3. The price is indexed to the offer and it can be adjusted according to regulatory changes.
4. Five years to begin the energy 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.
Contracts for aprox. 13.500 GWh will be auctioned.
The contracts last for 20 years.
materialize new electric generation investments
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 EnergyAgenda)
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
SICSupply start Building years Proyect Investment
cost(ref.) M US$OMAC (Ref.) M US$
Jan.2018 – July 2019
24 and 42 months Nueva Diego de Almagro Selective
59.550 893
SIC
2019 Almagro Selective Substation; New Line 2x22 kV between SUBs Nueva Diego de Almagro – Cumbresand a Autotransformer 1x750 MVA 500/220 kV
Supply start Building years Proyect Investmentcost(ref ) M US$
OMAC (Ref.) M US$
Interconnection
cost(ref.) M US$ US$
Jan.2018 –Jan.2020
24 and 54 months New 2x500 kV 1500 MW line between SS Los Changosand SS Nueva C
174.000 2.610
CruceroEncuentro; Autotranformerbanks 2x750 MVA 500/220 kV on SS Nueva CruceroNueva CruceroEncuentro; Autotranformerbank 750 MVA 500/220 kV at SS Los Changos and
The ChileanThe ChileanEnergyComisión Nacional de
EnergíaRegulatoryFramework
Andrés RomeroSecretario Ejecutivo
Comisión Nacional de Energía