AES to double battery storage capacity in Chile

  • Spanish Market: Electricity
  • 05/11/21

US utility AES plans to more than double battery storage capacity in Chile by 2023, marking progress in the country's ambitious strategy to transition away from fossil fuels.

AES will add 188MW of storage to reach 363MW in two years, the company announced during the UN Cop 26 climate conference in Glasgow today. The company currently has 62MW of battery storage in operation across several sites in Chile, and has around 112MW under construction.

The new batteries together with renewable energy projects represent more than $400mn in investment, the company says.

Speaking alongside AES executive vice president and chief operating and infrastructure officer Bernerd Da Santos, Chile's energy minister Juan Carlos Jobet highlighted that the new project brings the country closer to reaching at least 2GW of storage by 2030, one of the goals of the outgoing administration's proposed long-term national energy policy.

"In the face of the growing need for flexibility in the electricity system, we need lithium-ion batteries, or liquid air batteries, and all types of energy storage technologies to integrate renewable sources and ensure that clean energy can be available at any time and for all homes in Chile," Jobet said.

Batteries are critical to fully incorporating solar and wind energy into the power grid because they help to compensate for intermittency, reducing the need for thermoelectric back-up.

Investment climate

With the world's driest desert in the north and fierce winds in the deep south, Chile touts the potential for more than 80 times its current installed capacity for solar and wind energy. The 26.6GW national power grid already features 16pc solar and 10pc wind capacity, and another 3.2GW of solar and 950MW of wind projects are currently under construction, according to the National Energy Commission (CNE).

Chile aims to leverage its giant potential surplus of renewables capacity to produce green hydrogen for domestic applications such as heavy transport and steel, and for export.

The country's aggressive climate plans are nonetheless predicated on stable investment conditions which will be largely shaped by the outcome of 21 November elections to succeed embattled center-right president Sebastian Piñera. The current frontrunners are far-right José Antonio Kast and far-left Gabriel Boric.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

17/06/24

Iran rebukes G7 over nuclear warning: Update

Iran rebukes G7 over nuclear warning: Update

Adds quotes from IAEA director general Dubai, 17 June (Argus) — Iran's foreign ministry has called on the G7 to distance itself from "destructive policies of the past" after the group issued a statement condemning Tehran's recent nuclear programme escalation. "Unfortunately, some countries, driven by political motives and by resorting to baseless and unproven claims, attempt to continue their failed and ineffective policy of imposing and maintaining sanctions against the Iranian nation," the foreign ministry's spokesperson Nasser Kanaani said on 16 June. Kanaani advised the G7 "to learn from past experiences and distance itself from destructive past policies". His comments were in response to a joint statement from G7 leaders on 14 June warning Iran against advancing its nuclear enrichment programme. The leaders said they would be ready to enforce new measures if Tehran were to transfer ballistic missiles to Russia. The G7's reference to Iran comes on the heels of a new resolution passed by the board of governors of the UN's nuclear watchdog the IAEA . The resolution calls on Iran to step up co-operation and reverse its decision to restrict the agency access to nuclear facilities by de-designating inspectors. Kanaani said "any attempt to link the war in Ukraine to the bilateral co-operation between Iran and Russia is an act with only biased political goals", adding that some countries are "resorting to false claims to continue sanctions" against Iran. Tehran will continue its "constructive interaction and technical co-operation" with the IAEA, Kanaani said. But the agency's resolution is "politically biased", he said. Not an "anti-Iran" policy In an interview with the Russian daily newspaper Izvestia published today, IAEA director general Rafael Grossi refused claims of political bias. "We do co-operate with Iran. I don't deny this. This is important for inspection. My Iranian colleagues often say that Iran is the most inspected country in the world. Well, it is, and for good reason. But this is not enough," Grossi said, adding that the IAEA does not adhere to an "anti-Iran policy". Grossi also stressed the need for countries to return to diplomacy with Iran, while expressing concerns over the expansion of its nuclear programme. "Russia plays a very important role in this diplomacy, trying to keep the Iranian programme within a predictable and peaceful framework. But again, everything needs to be controlled," he said. The IAEA's new resolution and the reference to Iran in the G7 statement could be the start of a more concerted effort to raise pressure on Tehran over its nuclear programme. "What is happening right now is the process of accumulation of resolutions, so that when the day comes and the IAEA makes a referral to the UN Security Council, there will be enough resolutions to make a case for action at the security council level," a diplomatic source told Argus . Iran is enriching uranium to as high as 60pc purity. Near 90pc is considered to be weapons grade, according to the IAEA. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s Yatsushiro biomass plant starts operations


17/06/24
17/06/24

Japan’s Yatsushiro biomass plant starts operations

Tokyo, 17 June (Argus) — The 75MW Yatsushiro biomass power plant in south Japan's Kumamoto prefecture started commercial operations on 16 June. Yatsushiro is planning to generate around 480 GWh/yr and sell the electricity under Japan's feed-in-tariff scheme for 20 years. It burns 240,000 t/yr of wood pellets mainly imported from southeast Asia, including Vietnam, and 60,000 t/yr of wood chips that are domestically produced. The power plant was built by Japan's engineering firm IHI, which began construction in April 2022. IHI will also carry out regular maintenance and inspections. Chubu Electric Power own 49pc of Yatsushiro, along with 37pc held by Toho Gas and 14pc by energy joint venture Ene-Vision. Ene-Vision is 56.5pc owned by Japanese trading house Toyota Tsusho, 26.1pc by domestic farm machine and industrial engine manufacturer Yanmar, 8.7pc by engineering services firm Toyotsu Machinery and 8.7pc by Toho Gas. Another two biomass power plants are scheduled to become on line in Japan this summer, with Renova's 75MW Omaezaki venture in Shizuoka in July and the 50MW Ozu project in Ehime of Japanese upstream firm Japex and its partners in August. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Iran rebukes G7 after warning over nuclear escalation


17/06/24
17/06/24

Iran rebukes G7 after warning over nuclear escalation

Dubai, 17 June (Argus) — Iran's foreign ministry has called on the G7 to distance itself from "destructive policies of the past" after the group issued a statement condemning Tehran's recent nuclear programme escalation. "Unfortunately, some countries, driven by political motives and by resorting to baseless and unproven claims, attempt to continue their failed and ineffective policy of imposing and maintaining sanctions against the Iranian nation," the foreign ministry's spokesperson Nasser Kanaani said on 16 June. Kanaani advised the G7 "to learn from past experiences and distance itself from destructive past policies". His comments were in response to a joint statement from G7 leaders on 14 June warning Iran against advancing its nuclear enrichment programme. The leaders said they would be ready to enforce new measures if Tehran were to transfer ballistic missiles to Russia. The G7's reference to Iran comes on the heels of a new resolution passed by the board of governors of the UN's nuclear watchdog the IAEA . The resolution calls on Iran to step up co-operation and reverse its decision to restrict the agency access to nuclear facilities by de-designating inspectors. Kanaani said "any attempt to link the war in Ukraine to the bilateral co-operation between Iran and Russia is an act with only biased political goals", adding that some countries are "resorting to false claims to continue sanctions" against Iran. Tehran will continue its "constructive interaction and technical co-operation" with the IAEA, Kanaani said. But the agency's resolution is "politically biased", he said. The IAEA's new resolution and the reference to Iran in the G7 statement could be the start of a more concerted effort to raise pressure on Tehran over its nuclear programme. "What is happening right now is the process of accumulation of resolutions, so that when the day comes and the IAEA makes a referral to the UN Security Council, there will be enough resolutions to make a case for action at the security council level," a diplomatic source told Argus . Iran is enriching uranium to as high as 60pc purity. Near 90pc is considered to be weapons grade, according to the IAEA. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australian industry urges support for gas-fired power


17/06/24
17/06/24

Australian industry urges support for gas-fired power

Sydney, 17 June (Argus) — Australian utilities and market experts have grown more vocal about the need for federal and state governments to support existing and future gas-fired power generation, as the country phases out coal-fired plants and transitions to a system with more renewables. The current lack of incentives could be worsened by potential distortions stemming from the federal government's Capacity Investment Scheme (CIS), which will support 32GW of new renewable capacity and storage but excludes gas, delegates heard during the Australian Energy Week 2024 organised by Quest Events in Melbourne last week. "If you're only supporting new renewables and you don't take care of existing gas assets, you run into trouble," utility Engie Australia and New Zealand's chief executive Rik De Buyserie said. While "hugely positive" for renewables, the scheme will "add headwinds to the business case for keeping gas-fired assets in market," he warned. Engie earlier this year decided to close two diesel-fired power plants in South Australia (SA) — the 75MW Port Lincoln and 63MW Snuggery — as they were not economical in an environment of rapid solar and wind penetration , which "raises questions on the future reliability of the system," De Buyserie said. South Australia has brought forward its 100pc renewable energy target by three years , to 2027 from 2030, although noting that gas-fired plants would need to continue to back up the system. Infrastructure group Atco, which operates a gas distribution system in Western Australia (WA), as well as gas-fired plants in WA and SA, has been running one of its units more flexibly, even though it was originally designed to operate as a base-load facility. "We've made some technical adjustments. But it really puts a lot of pressure on the machine. And starting and stopping it two or three times a week will increase the wear and tear," Atco Australia chief executive John Ivulich said. "We can do it for a period but it's not sustainable." There is a "growing awareness" of the importance of gas in the reliability of the electricity system for consultancy McKinsey partner Victor Finkel, which was underlined by the federal government in its long-awaited Future Gas Strategy . But incentives for long-term investment, if any, are yet to be developed. The Australian Energy Market Operator estimated in its draft 2024 Integrated Systems Plan that the National Electricity Market will need 16.2GW of gas-fired capacity by 2050, up from the existing 11.2GW, as coal-fired generation is phased out in the next decade. Around 8GW of existing gas-fired capacity is forecast or announced to retire and will need to be replaced, while 5GW of new capacity will need to be added. Support mechanisms Lobby groups, such as the Australian Energy Producers and the Australian Pipelines and Gas Association, have been calling for support mechanisms for gas-fired generation, which could be done by including the technology in the CIS or developing alternative schemes that provide long-term investment signals. The market will "definitely" need capacity mechanisms to support gas-fired peaking plants in the long term, as there is currently no market signal for new investments, according to the director of the Gas and Energy Transition Research Centre at the University of Queensland David Close. "As long as that is not fixed, I would struggle to see new gas-fired capacity coming on line," De Buyserie summarised. "It's just too risky based on merchant revenues." By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan steps up effort to lower floating wind power cost


14/06/24
14/06/24

Japan steps up effort to lower floating wind power cost

Osaka, 14 June (Argus) — Japan is stepping up efforts to lower overall costs for offshore floating wind power generation, which can play a key role in boosting the country's renewable energy supplies. Japan's trade and industry ministry Meti and state-owned research institute Nedo said on 11 June that they have decided to support two pilot projects that will seek to bring down the overall costs for offshore floating wind power generation. Nedo plans to provide around ¥85bn ($539.8mn) from its green innovation fund over seven fiscal years from April 2024 to 31 March 2031. A consortium of nine Japanese companies led by Marubeni Offshore Wind Development, a wholly owned subsidiary of Japanese trading house Marubeni, has won a public tender to set up a project around 25km offshore south of Akita prefecture. The consortium plans to install two floating wind power facilities with capacity of over 15MW, targeting for operations to begin around autumn of 2029. Another consortium of five Japanese firms led by engineering firm C-Tech, a group company of utility Chubu Electric Power, is planning to build a floating power generator with over 15MW of capacity offshore Aichi prefecture. The projects assume relatively large capacity deployments of more than 10MW and aim to establish commercial technology for offshore wind to become globally competitive cost-wise by 2030. The project winners should set a cost target, referencing the US' cost target of $0.045/kWh by 2035, according to the government's wind power auction guidelines. This cost reduction is needed to accelerate a rollout of floating wind power facilities and help Japan achieve its 2050 net zero emission goal. Japan's purchase cost for electricity generated by offshore floating power facilities is set at ¥36/kWh for the April 2024-March 2025 fiscal year under the country's feed-in-tariff and feed-in-premium schemes. This can be compared with the lowest contract price of ¥3/kWh for bottom-fixed offshore wind projects in the latest public auction in December 2023, with the auction having secured a total of around 1.8GW bottom-fixed offshore wind capacity. Japan is aiming to install 23.6GW of wind power capacity by 2030, including 5.7GW offshore and 17.9GW onshore. It is eyeing the development of offshore wind farms, especially by promoting floating technology, given the country's geographical constraints. Tokyo aims to have offshore wind projects of 10GW by 2030 and 30-45GW by 2040. Tokyo has agreed to new legislation that will allow wind power facilities to be built in its exclusive economic zone, beyond its territorial and internal waters regulated under current laws, while striving to protect the marine environment. It is aiming to pass the amended legislation in an ordinary parliament session that will end on 23 June. Japan is under pressure to boost renewable power capacity to spur decarbonisation because the future of its nuclear industry is still unclear. But rising intermittent output from renewables will also prompt the country's power producers to secure sufficient thermal power capacity, including gas and coal, to help adjust power imbalances. Tokyo aims to generate 41pc of its electricity from thermal fuels in the April 2030-March 2031 fiscal year, which is higher than 36-38pc for renewables, under its current basic energy policy, which is due for a review this year. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more