{"id":50056720,"date":"2022-07-26T14:11:10","date_gmt":"2022-07-26T13:11:10","guid":{"rendered":"https:\/\/stage.dialogochino.net\/?p=56720"},"modified":"2023-07-21T19:04:37","modified_gmt":"2023-07-21T18:04:37","slug":"56654-will-chile-achieve-its-goal-of-an-energy-transition-by-2030","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/energy\/56654-will-chile-achieve-its-goal-of-an-energy-transition-by-2030\/","title":{"rendered":"Will Chile achieve its goal of an energy transition by 2030?"},"content":{"rendered":"

As Chile sets out to be carbon neutral by 2050<\/a>, an important step on the way needs to be achieved by the end of this decade: the conversion of its grid to one fully supplied by clean energies. While the will seems to exist, at least on paper, as the horizon draws nearer the nation faces more hurdles to overcome, and action needs to start now, experts warn.<\/p>\n

In June, the price of energy in Chile reached its highest level<\/a> in seven years. Marginal costs<\/a> of energy almost doubled compared to May this year. While this rise does not directly affect the Chilean end consumer, as residential electricity prices are set by the state, it is a symptom of the state of the country\u2019s electricity system.<\/p>\n

\n

22%<\/p>\n

\n
\nThe overall share of variable renewable energies, such as wind and solar, in Chile\u2019s national grid in 2021
\n\n <\/div>\n <\/div>\n

The increase is explained by the fact that part of this energy has had to be produced with diesel. Various reasons have driven this, including the closure of many coal-fired power plants<\/a> due to the country\u2019s decarbonisation plan, a drop in hydropower generation as a result of the mega-drought<\/a> that has plagued the country for almost a decade and a half, and the rise in the price of fossil fuels internationally due to Russia\u2019s invasion of Ukraine.<\/p>\n

With the exception of the war, these circumstances are not necessarily new. But the system is nonetheless struggling. And if no way is found to overcome these obstacles, Chile’s plans to transition to 100% clean energy in the near-term will be put under threat, as immediate needs see cheap energy prioritised \u2013 whatever the source.<\/p>\n

The Ministry of Energy has said it is working on accelerating its energy transition, but there have as yet been no new announcements since President Gabriel Boric\u2019s new government took office in March.<\/p>\n

Preparatory work<\/h2>\n

At the end of 2021, Chile\u2019s \u201cJust Transition Strategy for the Energy Sector<\/a>\u201d was published, as part of a commitment made in Chile\u2019s updated nationally determined contribution (NDC) to the Paris Agreement. The work was led by the ministries of energy, environment and labour under the previous government, which left office in March, and also involved a public consultation.<\/p>\n

Among other issues, the strategy includes workforce transition measures and plans for monitoring in areas around coal-fired plants to determine how they are improving after the closures.<\/p>\n

Although the new government has pitched itself as strongly pro-environment<\/a>, it has not yet made any major pronouncements on accelerating the energy transition, as it has just done, for example, on the development of green hydrogen in the country, which will be used largely for energy exports and not for domestic consumption.<\/p>\n

At a meeting<\/a> on 5 July, the Inter-Ministerial Council looked to kick-start the Green Hydrogen Industry Development Committee, in which various government agencies are participating. The work of the body will focus on the implementation of the National Green Hydrogen Strategy<\/a>, presented by the previous government. Its progress could provide a clue as to what might happen with the wider energy transition.<\/p>\n

A spokesperson for the Ministry of Energy told Di\u00e1logo Chino it is working in conjunction with the National Electricity Coordinator and the National Energy Commission to develop a technical plan for the phase-out of coal-fired power plants from the National Electricity System (SEN) by 2030.<\/p>\n

The three organisations are focused on finding a way to address the needs that the operation of the electricity system will have, such as making up for lost inertia \u2013 the additional energy stored in rotating gas and coal-fired generators, which solar and wind systems are incapable of matching \u2013 and the strength of the grid in the face of the phase-out of these fossil fuel units, according to the energy ministry. In addition, they will seek to boost the grid\u2019s efficiency, identifying how to optimise transmission facilities, and the location and operating hours of generation plants according to demand. Once the work has been completed, the ministry said, industry input will be invited to provide comments and observations in order to refine these guidelines.<\/p>\n

A step forward<\/h2>\n

In parallel to this work, the Coordinator went a step further and in early June presented its \u201cRoadmap for an Accelerated Energy Transition<\/a>\u201d. It analyses possible scenarios and defines actions that would make it possible to achieve 100% renewable energy generation by 2030.<\/p>\n

\u201cThe focus of the energy transition must be on citizens, ensuring that this transition reaches everyone. We do not intend this to be a roadmap for public or regulatory policies, nor a trajectory or plan for investments in generation,\u201d said Juan Carlos Olmedo, the Coordinator\u2019s president, during the presentation.<\/p>\n

The focus of the energy transition must be on citizens, ensuring that this transition reaches everyone<\/p><\/blockquote>\n

According to data from the roadmap, the overall share in the national grid of variable renewable energies, such as wind and solar, reached 22% in 2021, and their maximum contribution reached 62% \u2013 meaning the largest contribution made to the system at a single moment in time. It is expected that by 2030 these instantaneous values could reach 85% nationwide and 100% in some areas.<\/p>\n

The problem is that this goal will not be achieved with the electricity system as it is currently configured. As the Coordinator warns, the energy transition is producing a radical change in the way electricity is produced and consumed, as well as in the type of technologies that will prevail in the grid. \u201cThis will give rise to highly complex and unfamiliar operational scenarios,\u201d its roadmap reads.<\/p>\n

In other words, the transformation has to be almost total. That is, from the infrastructure of the system itself to its flexibility, robustness and resilience in order to ensure a safe, efficient and cost-effective energy transition. The stumbling blocks, the document continues, are: the slow implementation of regulatory reforms and investment decisions; project delays; and the effects of climate change, such as extreme droughts and intense natural disasters, among others.<\/p>\n

For \u00c1lvaro Lorca, an academic in the Faculty of Engineering of the Pontifical Catholic University of Chile, despite current obstacles, the question is no longer if the country will achieve an energy transition, but rather when. \u201cThe problem is that the technology is developing very fast, so we don\u2019t know if what we believe will be the most appropriate today will be the most appropriate in ten years\u2019 time,\u201d he explained. In fact, he added, the possibilities are so open that \u201cwe don’t know whether green hydrogen will actually dominate or whether a new type of battery will dominate.\u201d<\/p>\n

\"Graffiti<\/a>
Read more: Chile wants to close all its coal-fired power plants by 2025<\/a><\/strong><\/figcaption><\/figure>\n

The researcher believes that although the possibility of achieving the transition by 2030 is very ambitious, it is possible \u2013 but at a very high cost. This is because, among other things, \u201cif the transition is made too quickly, it will be like changing car too often \u2013 it will not be possible to sell what has already been installed to recover the investment, and these are very expensive machines.\u201d You can\u2019t think about speed without weighing up the costs, he adds.<\/p>\n

Added to this is the complexity of restructuring the whole grid. Although Chile is a world leader in the adoption of solar energy, says \u00c1lvaro Lorca, \u201cwe have to understand that the electricity system of 20 years ago has nothing to do with the current one and this, in turn, will have nothing to do with the one of 20 years from now. We cannot adopt policies ignoring the technical aspects, otherwise we will make very bad decisions.\u201d<\/p>\n

Urgency<\/h2>\n

While energy policy was not entirely clear under the previous government, since the new administration took office the picture has become even more blurred, says Javiera Lecourt, advocacy coordinator for the Latin American Just Transition<\/a> project and executive director of CEUS Chile, an NGO.<\/p>\n

\u201cWhile the new government has a clear ecological intention, in its first 100 days it has been very focused on confronting more pressing issues, including by incentivising fossil fuels,\u201d she explained. One of these has been the increase in the oil stabilisation fund<\/a>, a mechanism to cushion the rise in fuel prices.<\/p>\n

While the new government has a clear ecological intention, in its first 100 days it has been very focused on confronting more pressing issues, including by incentivising fossil fuels<\/p><\/blockquote>\n

What has been done so far does not necessarily mean that it will set the pace for the rest of the government\u2019s term, Lecourt continued, but it is necessary to pick up the transition agenda and send a clear signal towards decarbonisation.<\/p>\n

\u201cIt is necessary to accelerate the plan to close coal-fired plants, as well as to support the necessary legislative initiatives for the transition, as well as those related to storage,\u201d she said. Otherwise, she warns, the goal will not be reached: \u201cWe are very tight on time.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Chile\u2019s energy transition faces a tall task, with new regulations, investment and incentives, new tech and new actors all needed<\/p>\n","protected":false},"author":3882,"featured_media":50056721,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[761,757],"tags":[17073,18132,585],"hashtags":[],"country":[50000024],"class_list":["post-50056720","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-climate","category-energy","tag-energy-transition","tag-hydrogen","tag-renewables","country-chile"],"acf":[],"yoast_head":"\nWill Chile achieve its goal of an energy transition by 2030? | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"Chile\u2019s energy transition faces a tall task, with new regulations, increased investment and incentives, new tech and new actors all needed\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dialogue.earth\/en\/energy\/56654-will-chile-achieve-its-goal-of-an-energy-transition-by-2030\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Will Chile achieve its goal of an energy transition by 2030?\" \/>\n<meta property=\"og:description\" content=\"Chile\u2019s energy transition faces a tall task, with new regulations, increased investment and incentives, new tech and new actors all needed\" \/>\n<meta property=\"og:url\" content=\"https:\/\/dialogue.earth\/en\/energy\/56654-will-chile-achieve-its-goal-of-an-energy-transition-by-2030\/\" \/>\n<meta property=\"og:site_name\" content=\"Dialogue Earth\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-26T13:11:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-21T18:04:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/dialogue.earth\/content\/uploads\/2022\/07\/Chile-energy-transition_Alamy_2E0E508-scaled.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1331\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Patrick Moore\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Will Chile achieve its goal of an energy transition by 2030?\" \/>\n<meta name=\"twitter:description\" content=\"Chile\u2019s energy transition faces a tall task, with new regulations, increased investment and incentives, new tech and new actors all needed\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/dialogue.earth\/en\/energy\/56654-will-chile-achieve-its-goal-of-an-energy-transition-by-2030\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/dialogue.earth\/en\/energy\/56654-will-chile-achieve-its-goal-of-an-energy-transition-by-2030\/\"},\"author\":{\"name\":\"Patrick Moore\",\"@id\":\"https:\/\/dialogue.earth\/en\/#\/schema\/person\/f24ba2ba7a17516eb6ba76277aedfae5\"},\"headline\":\"Will Chile achieve its goal of an energy transition by 2030?\",\"datePublished\":\"2022-07-26T13:11:10+00:00\",\"dateModified\":\"2023-07-21T18:04:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/dialogue.earth\/en\/energy\/56654-will-chile-achieve-its-goal-of-an-energy-transition-by-2030\/\"},\"wordCount\":1494,\"publisher\":{\"@id\":\"https:\/\/dialogue.earth\/en\/#organization\"},\"image\":{\"@id\":\"https:\/\/dialogue.earth\/en\/energy\/56654-will-chile-achieve-its-goal-of-an-energy-transition-by-2030\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/dialogue.earth\/content\/uploads\/2022\/07\/Chile-energy-transition_Alamy_2E0E508-scaled.jpeg\",\"keywords\":[\"Energy transition\",\"Hydrogen\",\"Renewables\"],\"articleSection\":[\"Climate\",\"Energy\"],\"inLanguage\":\"en\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/dialogue.earth\/en\/energy\/56654-will-chile-achieve-its-goal-of-an-energy-transition-by-2030\/\",\"url\":\"https:\/\/dialogue.earth\/en\/energy\/56654-will-chile-achieve-its-goal-of-an-energy-transition-by-2030\/\",\"name\":\"Will Chile achieve its goal of an energy transition by 2030? 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