The price of electricity in Chile dropped to zero

The price of electricity in Chile has fallen to zero, and has been kept 113 days in a row at this level. The point is that in Chile operate powerful solar power plant, supplying power to the full. Sunny days in this country a lot, and stations produce large amounts of energy. So much that has to do with her nowhere. Therefore, consumers receive electricity free.




For Chile, this is not a novelty. Last year there was a similar situation, when energy prices were kept at zero 192 days. This year, the record is likely to be broken. Residents and owners of energy-intensive industries, of course, welcome. But all is not so rosy as it may seem - in the free energy has a negative side. The fact that energy companies in Chile belong to the private business, which now does not receive any profits or income. But the maintenance of energy infrastructure in working condition requires money.

In addition, representatives of the energy sector need somewhere to get the money for the construction of new facilities, which will replace the old station. Earlier production boom in Chile has led to a significant increase in the country's energy needs. Private business has come to the rescue: Various companies built 29 solar farms, and another 15 are planned. Construction of power plants was made with the expectation of continued economic growth. But now the world economy slows, and Chile did not need as much energy as produce station. Most of all energy consumed copper industry of the country, and after the demand for copper fell, facilities are no longer able to consume as much energy as before.

Investors are also losing money. For example, Acciona SA, the company invested $ 343 million in a project to build 247-megagvattnoy station. According to the plan, it is the largest such plant in the whole of Latin America. The money invested, but whether a profit, or at least refunded? The head of the company is not too sure about that.





Problem Infrastructure The biggest problem for the country's energy infrastructure is the fact that the entire power system is divided into two parts: the central and northern. Both parts are not connected with each other. The former head of the sector of renewable energy Carlos Barria (Carlos Barria) states that if one part of the surplus of energy, and the other requires more energy, nothing can be done. Now it is planning to fix the situation, but it will take time.

In order to connect the two parts of the country's energy system is required to construct a transmission line of 3,000 kilometers. Such a line is already starting to build, but the project can be completed only by 2017. Moreover, another line is 753 km long to be built, in order to improve connectivity northern energy system.

Solar power plant

The capacity of the solar power plants Chile are increasing, and the number of such sites continues to increase. Since 2013 the capacity of the entire "solar" energy system of the country has increased four-fold, up to 770 MW. The highest growth was observed in the northern sections of the power grid, the Atacama region, which is a center for the production and processing of copper in the country. Last year alone, the total increased capacity increased by 5%. About 50% of energy supplies provide solar farms.

This year we plan to build additional power - the realization of these projects started in the last year, so that the construction will not be stopped. However, in the same region of the Atacama average price of megawatts dropped to $ 60. That's less than the $ 70 per megawatt for which pledged to supply energy company won a long-term auctions in Chile.

This situation negatively affects the development of the country's energy sector in the long term. Yes, now everything is fine, and the construction continues. But in the near future, investors will simply stop investing energy in Chile facilities. Already, some companies refuse to continue funding a number of projects, in the future the situation can only worsen.

According to the representatives of energy companies in the country, the situation with the prices became almost uncontrollable because of too rapid development of alternative energy. "The rapid development of alternative energy was a surprise to us, and we must react quickly," - said Bernabei Salvatore (Salvatore Bernabei), head of the Enel Green Power SpA

. In the meantime, the problem is not solved, the low (zero), electricity prices will have a negative impact on the activities of energy companies.

And in Europe?

For Europe, this situation is also not surprising. In Germany, the energy consumers in some days even pay for the use of electricity. Since May 8, Sunday, Germany broke a new record in energy generation from renewable sources. Thanks to the sunny and windy weather at the same time the total energy production of solar, wind, hydro and bioenergostantsiyami was about 55 GW. In total in the country to this day, 63 GW of energy consumed. Thus, the share of renewable sources accounted for approximately 87%. For a few hours, rates went negative, which means that payments to consumers.



However, in Europe, energy companies a little easier to cope with such prices. Producers of "green" energy are in the black even in sub-zero prices - here should be considered subsidies for the production of clean energy. The problem is that often the surplus energy to put nowhere - "export" lines may be too "narrow" and send energy anywhere it is necessary. Therefore, energy producers are happy to get rid of excess even with the additional cost.

And in general, if we take the average, the solar electricity fell by 50% over the past 16 months. Presumably subsidize "green" energy will soon stop, and then will start a real competition between the "alternative service" and "classics". This, of course, on energy companies that produce energy by various methods, rather than musicians.