There is so much energy in Chile that consumers get it for free
This is very good for consumers, but bad for energy suppliers.
The electricity price in Chile 113 days in a row this year fell to zero at one point . The fact is that in Chile there are powerful solar power plants that supply energy in excess. There are many sunny days in this country, and the stations generate a large amount of energy. So big that there is simply nowhere to put it. Therefore, consumers receive electricity for free.
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For Chile, this is not a novelty. Last year there was a similar situation, when energy prices stayed at the zero point of 192 days. This year the record is likely to be broken. Locals and owners of energy-intensive enterprises, of course, are happy. But everything is not as rosy as it may seem - free energy has a negative side. The fact is that energy companies in Chile belong to private business, which now receives neither profit nor income. But maintaining the energy infrastructure in working condition requires money.
In addition, representatives of the energy sector need somewhere to get money for the construction of new facilities that will replace the old stations. An earlier manufacturing boom in Chile led to a significant increase in the country's energy demand. Private business came to the rescue: various companies built 29 solar farms, and another 15 are planned. The construction of power stations was carried out with the expectation of continuing economic growth. But now all over the world economic growth is slowing, and Chile no longer needs as much energy as the stations produce. The country's copper industry consumed most of the energy, and after the demand for copper fell, production facilities were no longer able to consume as much energy as before.
Investors are losing money. For example, Accion SA invested $ 343 million in a construction project for a 247 megawatt station. According to the plan, it is the largest such station in all of Latin America. Money is invested, but will there be a profit, or at least a refund? The head of the company is no longer sure of that.
Problem infrastructure
The biggest problem for the country's energy infrastructure is that the entire energy system is divided into two parts: the central and the northern. Both parts are not connected with each other. The former head of the renewable energy sector, Carlos Barria, claims that if there is a surplus of energy in one part and more energy in the other, nothing can be done. Now they plan to correct the situation, but it will take time.
In order to connect both parts of the country's energy system, it is required to build a transmission line 3000 kilometers long. This line is already beginning to build, but the project can only be completed by 2017. In addition, another 753 km long line will be built in order to improve the connectivity of the northern energy system.
Solar Power Stations
The capacity of solar power plants in Chile is constantly growing, and the number of such facilities continues to increase. Since 2013, the capacity of the entire "solar" power system of the country has quadrupled, up to 770 MW. The greatest growth is observed precisely in the northern sections of the power grid, the Atacama region, which is the center of copper production and processing in the country. Last year alone, the total increased capacity increased by 5%. About 50% of the energy supply is provided by solar farms.
This year it is planned to build additional capacity - the implementation of these projects began last year, so construction will not be stopped. However, in the same Atacama region, the average price of a megawatt dropped to $ 60. This is less than the $ 70 per megawatt for which companies that have won long-term auctions in Chile have pledged to supply energy.
This situation adversely affects the development of the country's energy sector in the long term. Yes, now everything is fine, and construction continues. But in the near future, investors will simply stop investing in Chile’s energy facilities. Already, some companies refuse to continue financing a number of projects, and in the future the situation can only get worse.
According to representatives of the country's energy companies, the price situation has become almost uncontrollable due to the too vigorous development of alternative energy. “The rapid development of alternative energy came as a surprise to us, and we must respond quickly,” said Salvatore Bernabei, head of Enel Green Power SpA.
In the meantime, the problem has not been solved, low (zero) electricity prices will adversely affect the activities of energy companies.
What about in Europe?
For Europe, this situation is also not surprising. In Germany, energy consumers on other days even pay for the use of electricity. So, on May 8, on Sunday, Germany broke a new record in the generation of energy from renewable sources. Due to the solar and at the same time windy weather, the total energy production by solar, wind, hydro and bioenergy stations was about 55 GW. In total, 63 GW of energy was consumed in the country that day. Thus, the share of renewable sources was about 87%. For a few hours the prices went negative, which means payments to energy consumers.
True, in Europe, energy companies are a little easier to cope with such prices. Producers of "green" energy are in the black, even at negative prices - here one should take into account subsidies for the production of clean energy. The problem is that often there is simply nowhere to put in surplus energy - the “export” lines may turn out to be too “narrow”, and you need to send energy somewhere. Therefore, energy producers are happy to get rid of surplus, even with a surcharge.
In general, if we take the average, solar electricity has fallen in price by 50% over the past 16 months. It is necessary to think, to subsidize "green" power engineers in the near future will cease, and then the real competition between "alternatives" and "classics" will begin. This, of course, is about energy companies that produce energy using various methods, and not about musicians.
The electricity price in Chile 113 days in a row this year fell to zero at one point . The fact is that in Chile there are powerful solar power plants that supply energy in excess. There are many sunny days in this country, and the stations generate a large amount of energy. So big that there is simply nowhere to put it. Therefore, consumers receive electricity for free.
')
For Chile, this is not a novelty. Last year there was a similar situation, when energy prices stayed at the zero point of 192 days. This year the record is likely to be broken. Locals and owners of energy-intensive enterprises, of course, are happy. But everything is not as rosy as it may seem - free energy has a negative side. The fact is that energy companies in Chile belong to private business, which now receives neither profit nor income. But maintaining the energy infrastructure in working condition requires money.
In addition, representatives of the energy sector need somewhere to get money for the construction of new facilities that will replace the old stations. An earlier manufacturing boom in Chile led to a significant increase in the country's energy demand. Private business came to the rescue: various companies built 29 solar farms, and another 15 are planned. The construction of power stations was carried out with the expectation of continuing economic growth. But now all over the world economic growth is slowing, and Chile no longer needs as much energy as the stations produce. The country's copper industry consumed most of the energy, and after the demand for copper fell, production facilities were no longer able to consume as much energy as before.
Investors are losing money. For example, Accion SA invested $ 343 million in a construction project for a 247 megawatt station. According to the plan, it is the largest such station in all of Latin America. Money is invested, but will there be a profit, or at least a refund? The head of the company is no longer sure of that.
Problem infrastructure
The biggest problem for the country's energy infrastructure is that the entire energy system is divided into two parts: the central and the northern. Both parts are not connected with each other. The former head of the renewable energy sector, Carlos Barria, claims that if there is a surplus of energy in one part and more energy in the other, nothing can be done. Now they plan to correct the situation, but it will take time.
In order to connect both parts of the country's energy system, it is required to build a transmission line 3000 kilometers long. This line is already beginning to build, but the project can only be completed by 2017. In addition, another 753 km long line will be built in order to improve the connectivity of the northern energy system.
Solar Power Stations
The capacity of solar power plants in Chile is constantly growing, and the number of such facilities continues to increase. Since 2013, the capacity of the entire "solar" power system of the country has quadrupled, up to 770 MW. The greatest growth is observed precisely in the northern sections of the power grid, the Atacama region, which is the center of copper production and processing in the country. Last year alone, the total increased capacity increased by 5%. About 50% of the energy supply is provided by solar farms.
This year it is planned to build additional capacity - the implementation of these projects began last year, so construction will not be stopped. However, in the same Atacama region, the average price of a megawatt dropped to $ 60. This is less than the $ 70 per megawatt for which companies that have won long-term auctions in Chile have pledged to supply energy.
This situation adversely affects the development of the country's energy sector in the long term. Yes, now everything is fine, and construction continues. But in the near future, investors will simply stop investing in Chile’s energy facilities. Already, some companies refuse to continue financing a number of projects, and in the future the situation can only get worse.
According to representatives of the country's energy companies, the price situation has become almost uncontrollable due to the too vigorous development of alternative energy. “The rapid development of alternative energy came as a surprise to us, and we must respond quickly,” said Salvatore Bernabei, head of Enel Green Power SpA.
In the meantime, the problem has not been solved, low (zero) electricity prices will adversely affect the activities of energy companies.
What about in Europe?
For Europe, this situation is also not surprising. In Germany, energy consumers on other days even pay for the use of electricity. So, on May 8, on Sunday, Germany broke a new record in the generation of energy from renewable sources. Due to the solar and at the same time windy weather, the total energy production by solar, wind, hydro and bioenergy stations was about 55 GW. In total, 63 GW of energy was consumed in the country that day. Thus, the share of renewable sources was about 87%. For a few hours the prices went negative, which means payments to energy consumers.
True, in Europe, energy companies are a little easier to cope with such prices. Producers of "green" energy are in the black, even at negative prices - here one should take into account subsidies for the production of clean energy. The problem is that often there is simply nowhere to put in surplus energy - the “export” lines may turn out to be too “narrow”, and you need to send energy somewhere. Therefore, energy producers are happy to get rid of surplus, even with a surcharge.
In general, if we take the average, solar electricity has fallen in price by 50% over the past 16 months. It is necessary to think, to subsidize "green" power engineers in the near future will cease, and then the real competition between "alternatives" and "classics" will begin. This, of course, is about energy companies that produce energy using various methods, and not about musicians.
Source: https://habr.com/ru/post/372329/
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