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OECD highlights Chile’s green transition potential

  • : Electricity, Metals
  • 25/01/15

The energy transition holds the potential to boost Chile's stagnant economic growth, the Organization for Economic Cooperation and Development (OECD) said in a report published today.

Chile's high renewable energy potential and "vast" lithium and copper reserves put the country in the right position to benefit from the switch to cleaner energy, according to the OECD Economic Survey of Chile 2025.

But the country must simplify regulation, boost investment, upgrade electricity transmission and port infrastructure, and increase carbon prices to meet its climate targets and harness the benefits of the energy transition, it said.

Chile's massive renewable energy potential is built on its OECD-leading photovoltaic power possibilities and the world's best onshore wind resources in the Magallanes region in the far south, it noted.

It needs to streamline permitting processes that often exceed legal permit reviewing times, making "investment approvals costly and lengthy," it said.

Chile's tax on carbon emissions of $5/t of CO2e is low by international standards and insufficient for the country to meet its emission reduction targets, the report said. The country plans to increase the tax to $10/t on sites that emit more than 25,000t/yr of CO2.

The OECD also highlighted the country's need to ensure fiscal sustainability, foster women's participation in the labour market and accelerate productivity through digitalization and innovation to bolster growth.

The country's income convergence with more advanced OECD economies has stalled since 2012, it said. GDP rose by 2.4pc in 2024, up from a 0.3pc increase in 2023, on the back of postpandemic "adequate macroeconomic policies".


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25/02/17

Philippines to review shutdown of 232MW coal plant

Philippines to review shutdown of 232MW coal plant

Manila, 17 February (Argus) — The Philippines will review plans to retire the 232MW Mindanao coal-fired power plant in Misamis Oriental province because the rehabilitation of a major regional power complex could cause an electricity supply shortage. The country could put on hold plans to accelerate the retirement of the Mindanao coal plant to 2026 from 2031, the Department of Energy (DoE) said. The plant, majority owned by private-sector Aboitiz Power, started operations in 2006 under a build-operate-transfer (BOT) agreement with the National Power and Power Sector Assets and Liabilities Management. The plant was originally scheduled to be retired in 2031 once the BOT agreement had run its course and plant ownership transferred to the national government, but authorities later decided to shut it down by 2026. The plant consumes over 1mn t/yr of coal. Authorities might review the retirement plans to offset the loss of power supply from the 1,000MW Agus-Pulangi hydropower complex, which will be rehabilitated next year. The complex comprises seven hydropower plants and serves as a key source of baseload power in the Mindanao grid. It is currently capable of producing only 600-700MW of power because of siltation and ageing infrastructure. Parts of the power complex are over 50 years old and its oldest dam, Agus 6, started commercial operations in April 1971. The rehabilitation involves repairing, replacing and upgrading the components of an existing hydroelectric power plant to restore its functionality, improve efficiency and extend its lifespan. The complex will run at a derated capacity during rehabilitation works, which could take several years. This comes as power demand in the Mindanao grid continued to increase last year. Demand averaged 2.248GW in 2024, a 10.2pc increase from 2.040GW a year earlier. The Mindanao plant could supply enough power to keep the grid stable at its full capacity, by covering for the loss in generating capacity and meeting the increase in power demand, DoE added. By Antonio Delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s economy grows in 2024


25/02/17
25/02/17

Japan’s economy grows in 2024

Osaka, 17 February (Argus) — Japan's economy expanded for a fourth consecutive year in 2024 as corporate investment increased, even as oil product demand fell. Gross domestic product (GDP) rose at an annualised rate of 2.8pc in October-December, according to preliminary government data released on 17 February, following growth of 1.7pc in July-September and 3pc in April-June. This sent Japan's full-year 2024 GDP up by 0.1pc from a year earlier, its fourth straight year of growth after a Covid-19 induced slump in 2020. Nominal GDP amount totalled ¥609.3 trillion ($4 trillion) in 2024, exceeding ¥600 trillion for the first time. Investment by private-sector companies rose by 1.2pc from a year earlier in 2024, recording annualised growth of 1.9pc in October-December. The rise partially reflected a government push for a green and digital transformation of the economy in line with its 2050 net-zero emission goal. Such spending is expected to continue to increase under Tokyo's economic stimulus package. Japanese business federation Keidanren has forecast that nominal capital investment could rise to ¥115 trillion in the April 2027 to March 2028 fiscal year, up by 7.5pc from an estimated ¥107 trillion in 2024-25. But private consumption, which accounts for more than 50pc of GDP, dropped by 0.1pc from a year earlier in 2024, as inflation capped spending by consumers. This also probably weighed on demand for oil products such as gasoline, despite government subsidies. Japan's domestic oil product sales averaged 2.4mn b/d in 2024, down by 5.2pc from a year earlier, according to data from the trade and industry ministry Meti. Gasoline sales, which accounted for 31pc of the total, dropped by 2.2pc to 752,700 b/d over the same period. But Japanese electricity demand edged up by 0.7pc year on year to an average of 98.8GW in 2024, according to nationwide transmission system operator the Organisation for Cross-regional Co-ordination of Transmission Operators. Stronger power demand reflected colder than normal weather in March and unusually hot weather in October. Japan's real GDP is predicted to rise by 1.2pc during the 2025-26 fiscal year, following predicted 0.4pc growth in 2024-25 and a 0.7pc rise in 2023-24, the Cabinet Office said on 24 January. The figures are the Cabinet Office's official estimates and form the basis of its economic and fiscal management policies. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU may trigger clause to boost defense spending


25/02/15
25/02/15

EU may trigger clause to boost defense spending

Munich, 15 February (Argus) — European Commission president Ursula von der Leyen wants to trigger an emergency clause that would allow member EU countries to significantly increase their spending on defense. She also warned that "unjust" tariffs on the EU will not go unanswered. Speaking at the Munich Security Conference on Friday, Von der Leyen said she "will propose to activate the escape clause for defense investments". Such a move would "allow member states to substantially increase their defense expenditure", she said. Von der Leyen's proposal would exempt defense from EU limits on government spending. Highly indebted EU members such as Italy and Greece have voiced support for the move, arguing that activating the escape clause would enable them to increase defense spending while avoiding other budget cuts. Fiscally conservative EU countries, including Germany, could push back against the idea. Von der Leyen's proposal comes at a sensitive time for the EU, with US president Donald Trump pressuring Europe to finance more of its own defense. Trump wants EU members of Nato to more than double military expenditure to protect themselves from potential aggression rather than leaning on Washington's support. Trump is also pushing to end the conflict between Russia and Ukraine. "Let there be no room for any doubt. I believe when it comes to European security, Europe has to do more. Europe must bring more to the table," Von der Leyen said, adding that the EU needs to increase its military spending from just below 2pc of GDP to above 3pc. The increase "will mean hundreds of billions of euros of more investment every year", she said. Tariffs will be answered Von der Leyen also reemphasized the EU's position on the recent US tariff decision, noting that tariffs act like a tax and drive inflation. "But as I've already made clear, unjustified tariffs on the European Union will not go unanswered," she said. "And let me speak plainly, we are one of the world's largest markets. We will use our tools to safeguard our economic security and interests, and we will protect our workers, our businesses and consumers at every turn," she added. Trump on 11 February imposed a 25pc tariff on all US imports of steel and aluminum effective on 12 March, although he said he would consider making an exemption for imports from Australia. US 25pc tariffs on steel and aluminum imports could result in a 3.7mn t/yr decrease in European steel exports, as the US is the second-largest export market for the bloc, European steel association Eurofer said. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil’s offshore wind gains momentum


25/02/14
25/02/14

Brazil’s offshore wind gains momentum

New York, 14 February (Argus) — Brazil is preparing for its first offshore wind projects following the approval of legislation that establishes a regulatory framework for investments in the sector. Industry leaders anticipate that this legal foundation will accelerate development, with the first auction for offshore wind areas expected soon. The move comes as Brazil seeks to leverage its vast wind resources and address slowing growth in its onshore wind sector. "The offshore wind law was approved at the right moment," said Elbia Gannoum, president of Brazilian wind association Abeeolica. "Brazil has one of the largest wind generation potentials, and without this law, the country risked missing investment opportunities." The new legislation comes as onshore wind expansion slows. After nearly 5GW of new wind capacity was added in 2023, investment declined, with capacity expanding by just 3.3GW last year, according to Abeeolica. A lack of demand from power distributors in energy auctions and an oversupply of power generation capacity have contributed to the slowdown. With limited demand for new projects, equipment suppliers have scaled back operations, and in some cases, suspended activities in Brazil. With the offshore wind law in place, the sector is optimistic that the government will hold its first auction for offshore wind areas this year or in early 2026. Awarding these areas would pave the way for Brazil's first offshore wind projects to begin operations by 2031 or 2032. Before the auction, the government must finalize regulations for the sector, which Gannoum expects will be complete this year. Companies have already begun preparing for the auction, conducting assessments of wind speeds, power transmission infrastructure and supply chains, according to Ricardo de Luca, Brazil country director for UK offshore wind developer Corio Generation. Once the areas are awarded, project development could take up to four years, followed by an auction for power purchase agreements in 2028, de Luca estimates. Corio plans to develop five offshore wind projects in Brazil, totaling 5GW of installed capacity. Wind developers warn that Brazil must also prepare its power transmission infrastructure for future offshore wind projects. "Even though areas haven't been awarded, the mines and energy ministry must start planning transmission infrastructure in regions with significant offshore wind potential," said Fernando Elias, regulatory director at Casa dos Ventos. "Without long-term planning, infrastructure bottlenecks could prevent projects from moving forward." While transmission constraints could pose challenges, Brazil has an advantage in developing offshore wind thanks to its established offshore oil and gas industry, said Renato Machado dos Santos, regional director of renewable energy at RES. "There is significant overlap in the supply chains for offshore wind and oil, which will not only accelerate investment but also make Brazil a more attractive destination for investors." Opportunities ahead? Despite potential hurdles, offshore wind developers remain cautiously optimistic. US president Donald Trump's 20 January executive order suspending offshore wind leasing and permitting could shift more investor interest toward Brazil. "Trump's policies have redirected attention to Brazil," de Luca said, adding that the Brazilian government has demonstrated a long-term commitment to renewable energy development. Beyond the offshore wind law, other recent legislation is expected to bolster demand for power from future offshore wind projects. This includes the approval of the low-carbon hydrogen law, which will drive demand for green fertilizer production. Additionally, the expansion of data centers for artificial intelligence and growing electricity demand from electric vehicle adoption will contribute to future power consumption in Brazil, a share of which will come from offshore wind projects, Gannoum said. Brazil’s onshore wind capacity GW Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Serbia aims to couple its electricity market in 4Q26


25/02/14
25/02/14

Serbia aims to couple its electricity market in 4Q26

London, 14 February (Argus) — Serbia aims to couple its day-ahead power market with the European market through its borders with Hungary and Bulgaria by the fourth quarter of 2026, but whether it will receive an exemption from the EU's carbon border adjustment mechanism (CBAM) remains unclear, market operations specialist at Serbian electricity exchange Seepex Milos Mosurovic has told Argus . The fourth quarter of 2026 is the first available time slot for EU-led regulatory body Energy Community constituent states to join the EU's single day-ahead coupling scheme and was assigned by the market coupling steering committee, Mosurovic said. But market coupling is a prerequisite for exemption from the CBAM, which is planned to go into effect on 1 January 2026. Energy Community members previously agreed to the 2022 Electricity Integration Package, which would provide an exemption from the CBAM until 2030 if they coupled with the European market and met other requirements by 2026. But Energy Community Secretariat director Artur Lorkowski recently said in an interview with Argus that Energy Community constituent states probably will not receive a CBAM exemption , as they have not achieved market coupling, which is a precondition for exemption. But Lorkowski did acknowledge that "greater clarity is needed" on specific criteria to determine when a third country may be considered to have ''an electricity market that is integrated with the union". This lack of clarity, along with the procedural meetings, have created market uncertainty surrounding whether and how the CBAM could be applied to Energy Community constituent states. "All relevant participants in the energy sector are aware that [Energy Community] countries will not couple until [after] 1 January 2026," Mosurovic said. "This is why we do not know what to expect regarding the CBAM." If the CBAM was applied to electricity flows, an EU emissions trading system (ETS) equivalent would be applied to Serbian electricity flows beginning on 1 January 2026. The implementation of an EU ETS equivalent was deemed to be the most expensive of four models that could be introduced into the Energy Community region, as it would lead to an increase of 13-29pc more than the baseline scenario calculated on the electricity market as of July last year, an Energy Community ministerial council report published in December shows. The four proposed models are a regional ETS, a fixed-price ETS, a carbon tax and integration into the existing EU ETS. The final option was ranked the lowest for feasibility from a legal and technical standpoint. And the method of the application of the CBAM to electricity flows has not been revealed. According to an Energy Community report from October , it is not possible to separate electricity exports from transit flows based on currently available data, and therefore it is possible that both export and transit volumes will be subject to the CBAM, as transactions for electricity entering the EU from contracting parties were declared solely as imports regardless of origin. Thermal power plants among community contracting parties have benefited from access to the EU's integrated electricity market, but have not been subject to the EU ETS, despite all coal and lignite-fired thermal power plants in the region considered to be in breach of the requirements of the EU's large combustion plant directive. But thermal capacity remains key in the Balkans, despite more renewables entering the power mix. Coal-fired generation accounts for about 40pc of annual domestic generation in the region. By Annemarie Pettinato Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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