Weekly Market Analytics Chile Vol 11 Num 42

VOL 11 | NUM 42 | 9 May 2025

Power Markets Weekly

CHILE | 28 April - 4 May 2025

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Weekly curtailment rate hits the lowest value of the year, leading to a solar share increase

Global SEN operation

Polpaico average price was USD 67/MWh, 26% lower than last week’s and 13% higher than the same week last year.

Marginal cost evolution in Polpaico during past years

In terms of the energy mix, solar participation rose this week by 3.5 pp., being the main increase of the week. This, coupled with the maintenance of some gas power plants, led to a 0.5 pp. decrease in gas generation. Coal and dam followed solar with increases of 0.6 pp. and 0.4 pp., respectively.

On the other hand, renewables technologies like wind and run-of-river decreased their shares, the first one by 2.0 pp. and the last by 0.6 pp.

Demand reached its weekly peak of 11.3 GWh/h at 1 PM on Wednesday, when solar generation represented 44.3% of the mix, while wind represented 11.7%. Hydro sources represented a combined 18.2% and thermal sources a combined 23.2%.

Generation Mix

Variation

Power range by energy sources (average prices)

Generation evolution

Geothermal

Cogeneration

Biomass

Coal

Gas

Oil

BESS

Dam

Run-of-river

Wind

PV Solar

CSP

On the transmission side, the common decoupling of Puerto Montt was observed at different hours from Monday to Thursday and on Saturday due to congestions on the 220 kV lines: Charrúa - Santa Clara and Lastarria – Ciruelos. Additionally, there were congestions on the 500 kV line Nueva Pan de Azúcar – Polpaico, which decoupled Pan de Azúcar from Polpaico during solar hours on Tuesday, Wednesday, and Friday.

At nigh times from Monday to Saturday, different oil power plants had to operate to meet the demand and supply ancillary services, and at 11 PM on Tuesday the weekly peak marginal cost occurred, reaching USD 199.0/MWh on Crucero and USD 198.5/MWh on Polpaico when Espinos power plant (oil) set the price. Tuesday evening was also coincidentally the moment where wind generation and share reached their lowest.

Although water variable cost was reduced this week from USD 94/MWh to USD 76/MWh, some dam power plants faced reservoir level controls, and two dam power plants were declared under depletion: Pehuenche during the whole week except from Thursday and Rapel on Wednesday and Friday.

Marginal cost evolution

Crucero
USD 66.0/MWh

D. de Almagro
USD 64.6/MWh

Pan de Azúcar
USD 64.7/MWh

Polpaico
USD 67.0/MWh

Charrúa
USD 64.5/MWh

Puerto Montt
USD 64.8/MWh

Solar and Wind production & BESS dispatch

Solar generation increased this week by 55 GWh (+19.7%). Main plant factor was seen in both Crucero and Diego de Almagro area with an equally 20.4%, while the lowest plant factor was seen in Puerto Montt (6.2%).

Wind generation on the other side, dropped by 31.8 GWh (-13.9%). Main power plant factor was seen in Puerto Montt with 31.2%, while the lowest was seen in Diego de Almagro with 14.0%.

BESS injections increased by 3.8 GWh (+12.3%). Highest plant factor was seen in Crucero area, with 21.7%, while the lowest was in Polpaico with 5.9%.

This week’s curtailment rate for solar was of 3.9% (13.6 GWh), while wind curtailment only reached 2.4% (4.8 GWh), reaching the lowest average combined weekly curtailment rate of the year so far: 3.4% (18.4 GWh), this is 61.4 GWh less than last week.