Study supported by CAF to promote energy integration between Chile and Argentina advances

The study’s scope, methodology and expected results were analyzed during the first workshop of the “Study of Benefits, Economic Dispatch and Regulatory Analyses / Interconnection Alternatives in Chile - Argentina,” presented by the MRC - SIGLA – SYSTEP consortium, in order to reach a consensus among all stakeholders regarding the assumptions and premises required to carry out the study. The required data provided by technical and institutional authorities from both countries was also reviewed on this occasion.

The “Study of Benefits, Economic Dispatch and Regulatory Analyses/Interconnection Alternatives in Chile – Argentina” is built around the following goals:

1. Model and simulate the economic dispatch of the electrical systems in Chile and Argentina (Andes – Salta, Nueva Pan de Azucar – Rodeo, Ancoa – Rio Diamante, and in the area of Coyhaique, Chile). Considering development scenarios of the generation parks in Chile and Argentina, based on the latest hypothesis available in public planning instruments issued by regulatory agencies. In addition, the consultant will address the interconnection of the Magellan medium-voltage system with Argentina’s interconnected system.
   
   
2. Model, simulate, and analyze the interconnection projects considered to assess the potential economic benefits. This includes analyzing different operation kick-off dates, sizes and analyses regarding the resilience of systems in the event of contingencies, besides identifying the need to expand facilities used for interconnection or within the Chilean and Argentine systems.
   
   
3. Analyze and quantify the complementarities between the Chilean and Argentine power generation matrices.
   
   
4. Analyze the regulatory aspects related to the energy exchange and the effects that different exchange modalities would have on the respective systems.
   
   
5. Quantify the environmental benefits arising from the potential deployment of interconnection projects, estimated based on national and international references regarding the reduction of greenhouse gas emissions avoided, in tons of CO2, and/or reduction energy losses (energy efficiency) in GWh/year.

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

The study is 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.

Results are expected to be released by late 2018, according to the study’s schedule. These findings will be crucial for the decision-making process of energy authorities both in Chile and Argentina, besides improving energy integration between the two countries.

The meeting was held on July 26 and 27 in Santiago, Chile, featuring representatives from the Department of Energy of Chile, Department of Energy of Argentina, Chile’s National Energy Commission (CNE), Wholesale Electric Market Management Company (CAMMESA), MRC – SIGLA – SYSTEP consortium, and CAF-development bank of Latin America.