NCRE Contribution shall not exceed 15% by 2025, despite the new regulations
New 20-25 Law applies only to contracts signed after July 2013. Thus, several existing agreements will be out
The new law to promote renewable energy, which is about to be approved by Congress, is called 20-25, since its aim is that by 2025, 20% of the energy produced in Chile come from some source green
However, that will not happen. At least not the year in which it is planned, since the new rules only affect contracts signed after July 2013. This was stated by CEO of the Association of Generators of Chile, René Muga, who argues that 20% of demand by 2025 is a reference order number, then the contribution will be less than that. Therefore, all power supply agreements are outside prior to that date, among which include the contract between Codelco and Colbun to supply mining operations located within the Central Interconnected System (SIC).
In this regard, Electroconsultores partner, Francisco Aguirre, argues that, however, all contracts signed after 2008 they will be subject to some kind of NCRE requirement, because the rules governing agreements between that year and started 2013 include a requirement that has now reached 5% and will grow to 10% in 2024.
Aguirre said that the validity of these contracts will reduce the contribution to the electrical grid NCRE to about 15%, far below the 20% expected by the authority.
The Executive Director of the Chilean Association of Renewable Energies (sidewalk), Carlos Finat, recognizes that the law will affect only contracts after July 2013, but notes that his estimates indicate that to meet the requirements of these two laws, “will require at least 17% of NCRE by 2025 “.
However, he believes that the contribution could be higher, and not necessarily by legal requirements.
“There is an effect we believe more relevant, which is the combination of the expected rise in the price of fossil fuels and the cost lowering the of NCRE. If Today NCRE are already competitive, it is reasonable to expect that in the future are straight cheaper, “adds Finat.
Source: Pulso
