Faced with drought, Chile aims to bolster its hydropower reserve rules

Chile map

Chile’s energy ministry amended a 2021 power sector decree in response to a lengthy drought impacting the electricity sector. The revision tasks grid coordinator CEN with working with hydroelectric dam operators to ensure the equivalent of 650 GWh is always in reserve.

The drought has affected dam reservoir levels and hydroelectric plant output. Chile’s high dependence on imported fuels and its worsening hydrological conditions mean the electricity grid is likely to be under strain this year, leading the country to adopt emergency measures and even consider electric power rationing, according to BNamericas.

The revised rules also task CEN with producing projections of the average amount of diesel needed each month on the Sistema Interconectado del Norte Grande (SEN) grid to “minimize the probability of electricity rationing.” The government recently issued rules concerning diesel-fired generation and its role in strengthening the security of power supply.

Hydroelectric facilities account for 3.40 GW, or 10.8%, of the country’s installed capacity, and run-of-the river plants provide 3.98 GW, or 12.6%. According to CEN data, hydroelectric plants produced 1,231 GWh, or 18.9% of total output, in February 2022. That was down from 1,279 GWh, or 20.7% of the total, as of February 2021.

Plants powered by oil derivatives represent around 3.3 GW of capacity on the SEN grid, or 10.5% of the 31.6 GW total installed capacity.

Diesel plants accounted for 78.9 GWh, or about 1.2% of generation, in February. Chile has 13 diesel-fired power plants under construction for a total of 93.8 MW, according to a January report published by national energy commission CNE. Coal plants produced 1,785 GWh (27.4%) and natural gas facilities 1,224 GWh (18.8%). Total electrical output in the country was 6,522 GWh.

Chile buys around 89% of its diesel from the U.S., followed by South Korea (9.7%) and China (1.6%), according to the CNE report. In August 2021, the country bought 532,000t of diesel, up 73.3% year-on-year.

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