Aela successfully participates on SING Forum’s 14th version debate panel

Antofagasta, 4 October 2016

The latest edition of the Electrical Forum of the Northern Interconnected System (SING) was held last 4 October.

The event included a debate panel on the new national electrical system that connects the northern and central systems, in addition to its implications in terms of contracts and prices for end users.

Aela Energía Commercial Director Daniel Garrido shared the panel with Ana Lía Rojas, Business Manager for GTD Ingenieros; Iván Saavedra, Chief of the CNE Electrical Department; Acenor CEO Rubén Sánchez and Cochilco Legal Counsel Alex Matute. The panel was moderated by energy consultant Sebastián Mocarquer.

The participants agreed that the new system will lead to increased efficiency and economies of scale; that it will attract more investment, increase competition in the sector, allow the complementariness of renewable resources and foster greater transparency.

In addition, Daniel Garrido said that interconnection will lead to a crossed use of resources and allow generators to diversify their portfolios both geographically as well as technologically, and that it will favor solar power plants in the SING, which can offer short term bilateral power purchase agreements (PPA) to industrial customers in the SIC whose consumption is adapted to that type of generation.

Interconnection will lead to a crossed use of resources and allow generators to diversify their portfolios both geographically as well as technologically, and that it will favor solar power plants in the SING, which can offer short term bilateral power purchase agreements (PPA) to industrial customers in the SIC whose consumption is adapted to that type of generation.

Daniel Garrido

For his part, Rubén Sanchez expressed the concern of the unregulated customers he represents regarding what percentage of the cost of financing the interconnection line will be passed on to unregulated customers. Along these same lines, he mentioned other costs associated with the development of the transmission line: payment of the coordinator, payment of the panel of experts, payment for studies on territorial easements, payment for the clearances in development poles, in addition to charges for duplicities and electricity transmission losses due to locating generators closer to their resources.

Regarding contracts with unregulated customers, everyone agreed that they will seek to obtain lower prices, like those obtained in the latest supply tender for regulated customers. However, to be able to negotiate better conditions, they must be able to link up the timelines contained in the contracts with the needs of project investors. In other words: extend the duration of the contracts.