From pv magazine LatAm
The Chilean Ministry of Energy is considering to reduce feed-in tariff for distributed generation (PMGD) for the purpose of raising funds for the extension of the electricity subsidy.
The Chilean Association of Renewable Energy and Storage (Acera), the Chilean Solar Energy Association (Acesol) and the Association of Small and Medium Generators (GPM A.G.) have responded with a joint statement in which they “express their deep concern and opposition to the recent proposal”. The coalition says the proposal “significantly alters the remuneration scheme of the PMGD by taking away, through an arbitrary mechanism, revenues from projects with investments already made”.
“We understand and share the concern about the increase in electricity tariffs and the need to find solutions that benefit consumers,” the statement continues. “However, artificial interventions can generate more problems than solutions”.
“Artificial intervention in the prices of electricity supply contracts awarded in public tenders has generated uncertainty and distrust among those who finance the development of energy projects in Chile, as it significantly affects the great distinguishing feature that sets Chile apart, legal and regulatory stability,” the coalition added. “This new measure will aggravate the perception of regulatory risk, driving away or making future investments and financing in the energy sector more expensive, with a consequent increase in the price of energy”.
The associations explain that the energy sector is Chile's second largest attractor of foreign investment in the country and therefore “requires investments and financing in capital-intensive assets with a long useful life”, adding “the stability and predictability of the regulatory framework are essential to materialize these investments.”
They also warn the measure “will be the final blow for many developers of distributed generation projects, their financing banks, the associated industry and, most importantly, for the families whose sources of employment depend on them.”
“It is crucial to look for alternatives that do not compromise market stability, the country's competitiveness, the confidence of investors and financiers, and finally, most importantly, the price of energy in the long term”, the statement concludes.
The associations are urging authorities “to broaden the spectrum of viable solutions that do not jeopardise the stability of the renewable energy industry and, as a consequence, seek to preserve the growing competitiveness in the sector for the benefit of Chilean families”, warning that this particular measure “could have serious consequences for the country's economy”.
Chile's Technical Committee on Energy, which is analyzing the expansion of the electricity tariff subsidy, met to discuss the issue on August 2. Among those participating were the Chilean Minister of Energy, Diego Pardow, and the executive directors of Acera, Acesol and GPM.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.