Studies on interconnection options between Chile and Argentina begin

The Department of Energy of Chile, with the support of CAF-development bank of Latin America, has initiated the “Study on Benefits, Economic Dispatch and Regulatory Analyses/Interconnection Options Chile – Argentina”, which will examine the benefits and legal feasibility of establishing electricity interconnections between both countries, including:

• Simulations of the economic dispatch of both electricity grids, considering up to four interconnection projects and based on the power generation scenarios in both countries.
• Assessment of the economic benefits of interconnections, including an analysis of the resilience of interconnected grids in the event of contingencies and the establishment of expansion requirements to interconnect the Chilean and Argentinian grids.
• Quantification of the environmental benefits of possible interconnection projects, including reduction in energy losses, improvements in integrated economic dispatch (energy efficiency) and reduction in greenhouse gas emissions, as a result of joint operation.

The study is being jointly funded by the European Union through its LIAF (Latin America Investment Facility) initiative, managed between CAF and the KfW, and coordinated by the International Directorate of the Department of Energy of Chile, supported by the National Energy Commission and the Analysis and Energy Strategy Directorate of CAF’s Infrastructure Vice-President’s Office.

The study is just one of the activities scheduled for this year within the Department of Energy’s “2018-2022 Energy Route: Leading Modernization with the People’s Seal” program.

The study was procured through an international tender won by the MRC-SIGLA-SYSTEP consortium, which comprises MRC Group of Companies of Spain, SIGLA S.A. in Argentina, and SYSTEP in Chile.

According to the timetable for the study’s development and publication of results, conclusions and reports should be available at the beginning of next year, which will help major energy corporations in Chile and Argentina make decisions to develop cooperation between the two countries in the energy sector.