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ENERGY IN INDIA
September 2017
2 www.coordinadorelectrico.cl
Agenda
National Electric Systems in Chile
Electricity Market Framework, History and Context
Main challenges in V-RE Integration
Lack of transmission capacity for RE
Interconnection the National Electric Grid
Ramping control for net load demand.
Final Comments
2 www.coordinadorelectrico.cl
National Electric Coordinator
Chilean ISO
(Coordinador Elctrico Nacional)
Independent technical organization in charge of operating (coordinating) the
electric facilities in the national electric grid.
Responsible for ensuring reliable, efficient operation of the power system, and for ensuring
open access to the transmission systems
Chilean ISO started up on January 1st, 2017 (Law 20,936, July 2016)
Chilean ISO is the legal continuator of former CDECs (SIC and SING)
Independent Board of Directors (5 members, 5-year period) responsible for steering and
administering the organization
Board Members elected by a Nomination Committee (National Energy Commission, Panel
of Experts, Antitrust Tribunal, Public Executives Search Service) in a public recruitment
process
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NATIONAL ELECTRIC COORDINATOR: CHILEAN ISO
SING
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Electric System SIC
Central Interconnected System (2016)
Capacity & Energy by Fuel Type
39%
40% 36% 45% of
Installed Capacity: 16,837 MW 35% 32%
R.E.
30%
Energy Generated: 53,906 GWh 25% 18% 19% taking
20% 16%
Peak Demand: 7,789 MW 15%
14%
into
Population: 16.6 Mill. (92.2%) 10%
1% 2%
5% 6%
4% 5%
3% account
5%
Customers: 70% regulated 0% Large
Hydro Coal Diesel LNG Cogen Wind Solar
Hydro in
Installed Capacity Energy Generated SIC.
33% for
both
system
SIC&SING
SIC
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Electric Systems Total
National System (2016)
Capacity & Energy by Fuel Type
44%
45%
Installed Capacity: 22,045 MW 40%
35% 29%
Energy Generated: 73,877 GWh 30% 26%
22% 23%
25%
Peak Demand: 10,400 MW 20% 17%
14%
Population: 17.3 Millions 15%
10% 4% 5% 5%
3% 2% 3% 3%
5%
0%
Hydro Coal Diesel LNG Cogen Wind Solar
11 www.coordinadorelectrico.cl
Agenda
National Electric Systems in Chile
Electricity Market Framework, History and Context
Main challenges in V-RE Integration
Lack of transmission capacity for RE
Interconnection the National Electric Grid
Ramping control for net load demand.
Final Comments
2 www.coordinadorelectrico.cl
GENERATION AND ENERGY PRICES:
Produccin Energa
[ GWh /mes] HISTORICAL EVOLUTION Cmg Quillota 220 kV
[ USD / MWh ]
6.000 350
First Natural Gas Argentinean Natural LNG
curtailment Gas Crisis (Quintero Plant)
300
5.000 from Argentina
250
4.000
200
3.000
150
2.000
100
1.000
50
0 0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Elico Solar Otros (Biomasa-BioGas)
Carbn Hidrulico GN
GNL Petrleo Cmg Quillota 220 kV
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Chilean electricity market Historical
development
<1982 (1)
1982 2004-2006
Amendments
State-owned
Private model
model
The Short Law I:
Generation
- Open access regulation
Generation
Transmission - It creates Expert Panel
Transmission
- No transmission charges for
Distribution Distribution
non-conventional small
projects < 9 MW
All segments were Vertical integration was
public entities modified
The Short Law II:
Market introduction with
locational marginal price Tenders distribution companies
scheme supply (end-users)
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Chilean electricity market Historical developmen
Chile adopted a non-subsidiary model for the
integration of2008
renewables. 2012 - 2013 2016
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THE DEVELOPMENT OF
NCRE
Annual generation 2008 Annual generation 2016
Generation
NCRE
Target
NCRE
The annual target has been exceeded by projects developed under market conditions
Tenders Process for supply
energy to Distribution
Companies
Introduction of the so-called hourly blocks,
with a significant impact on bidding prices.
A B C
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Average price 2016= 47.6
US$/MWH
(include a record bid for Chile
PV project=29 US$/MWh
Block B)
INTERNATIONAL CONTEXT
Bidding process
Electricity Market Framework
Ministry of
Energy Fuels & Electricity
National Energy
Commission Superintendency
(CNE) (SEC)
Regulatory body Sanctioning body
Laws, decrees, norms Interprets regulations
Set rates Norms compliance oversight
National Electric
Other organizations: Coordinator
Panel of Experts (Chilean ISO)
National Economic
Prosecution Office
(FNE)
Transparency Counsel
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Wholesale Energy,
Generator A Capacity
LMP
& AS Markets
Chilean ISO defines day-ahead generation schedule based on economic dispatch
Pricing
LMP from economic dispatch is based on declared variable costs (LMP settlement ex-post)
Chilean ISO determines energy balances by differences (contracted vs. actual generation priced at LMP)
Competitive long-term energy bids for regulated customers conducted by the CNE
National Electric Capacity payments based on plants availability during peak demand
Ancillary services will transition from cost-based to auction-based for balancing
Coordinator
LMP
Pricing Long-term
Contracts Distribution
(Regulated) Proportionally charged
Generator Transmission
to demand
B (Regulated/
Tariff based on tender
Competitive) process for new
Bilateral
Large transmission projects
Contracts
Customers
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Wholesale Marginal Cost & Tariffs
120.0
CMO SIC CMG Quillota 220 kV CMO SING CMG Crucero 220 kV
Average Operation Average Marginal
100.0 Cost (CMO) SING Cost (CMG) SING
80.0
39 64
[USD/MWh]
USD/MWh USD/MWh
60.0
DIC
SEP
FEB
Mar
JUL
JUN
OCT
MAY
ENE
MAY
AGO
Abril
NOV
2017
Rates 2016:
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Transmission Sector
Generators
Dedicated Dedicated
Dedicated
Distributors
Distributors Consumers
Consumers
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Agenda
National Electric Systems in Chile
Electricity Market Framework, History and Context
Main challenges in V-RE Integration
Lack of transmission capacity for RE
Interconnection the National Electric Grid
Ramping control for net load demand.
Final Comments
2 www.coordinadorelectrico.cl
Potential Renewable Energy in Chile
Chile has enormous potential, more than 1,865 GW of wind, solar and
hydro energy, and probably 2,000 or more MW geothermal power and
2,000 MW of biomass.
FLEXIBILITY CHALLENGES
FLEXIBILITY
CHALLENGE INTEGRATION NCRE
INTERCON
NECTIONS
HYDRO
RESERVOIR
THERMAL
POWER
FLEXIBILITY
PUMP
STORAGE
STORAGE SYSTEM
TRANSM.
SYSTEM
BATTERIES
DEMAND
SIDE RESP
Handle lack of transmission
capacity for RE
In the northern part of SIC (800 km, 220
kV system):
Norte Grande
Local Demand: 1000 MW
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Final Comments:
The fast integration of renewables energy in the Chilean power system
is bringing new challenges in order to keep the reliability standards
and guarantee an efficient operation.
The interconnection SING-SIC (2017-2018) will be a valuable support
to face these challenges (flexibility from hydro reservoir) but it could be
not enough. We have to think, for instance, in redesign the A/S market
National and regional control centers
System Resilience (forest fires, hydrology variability, drought conditions
prolonged 7 years)
Integration of high levels of renewables (high potential wind&solar)
Centralized forecasting V-RE, National AGC, situational awareness
NCRE: Grid friendly
Implementing new functions (Law 20,936)
LARGE SCALE GRID INTEGRATION OF RENEWABLE
ENERGY IN INDIA
September 2017