Weekly Market Analytics Chile Vol 11 Num 51

VOL 11 | NUM 51 | 11 July 2025

Power Markets Weekly

CHILE | 30 June - 6 July 2025

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Limitations on 500 kV line Nueva Pan de Azúcar - Polpaico were resolved, restoring the line to normal operation

Global SEN operation

The average price in Polpaico was USD 119.1/MWh, which is 2% lower than last week and 228% higher compared to one year ago.

Marginal cost evolution in Polpaico during past years

In terms of the generation mix, hydro sources continued to reduce their participation: dam by 2.9 pp. and run-of-river by 1.6 pp. This reduction is attributed to the winter season and low rainfall levels.

Renewables showed a mixed behavior: while wind reduced its share by 0.6 pp., solar increased its participation by 2.8 pp.

Thermal generation increased its participation: gas by 2.3 pp. and coal 0.4 pp.

Average variable cost of dam reached up to USD 97/MWh at the time that dam-stored energy is at its lowest level of the year.

Generation Mix

Variation

Power range by energy sources (average prices)

Learn more about this chart

Generation evolution

Geothermal

Cogeneration

Biomass

Coal

Gas

Oil

BESS

Dam

Run-of-river

Wind

PV Solar

CSP

After two weeks, on 25 June, the 500 kV line Nueva Pan de Azúcar - Polpaico returned to normal operation. However, this does not mean it was free from congestions.

The 500 kV line Nueva Pan de Azúcar – Polpaico experienced periodic congestion throughout the week during the mornings. This condition triggered a decoupling from Polpaico to the south.

The 220 kV line Cautín – Río Malleco was also congested during solar hours on Monday and Tuesday, decoupling Puerto Montt from the system.

Additionally, the 220 kV line Charrúa – Santa Clara was congested on Thursday evening and during solar hours on Sunday, and could not send energy to Charrúa, leading to another decoupling of Puerto Montt from the system.

The peak price was USD 234.0/MWh in Puerto Montt on Monday at 12 PM, set by Trapén oil power plant that was required to supply the demand and ancillary services. In that moment, the system demand was 11.8 GWh being 30.3% supplied by thermals: 15.5% by gas, 13.8% by coal and 1.0% by oil.

Marginal cost evolution

Crucero
USD 86.2/MWh

D. de Almagro
USD 87.2/MWh

Pan de Azúcar
USD 89.9/MWh

Polpaico
USD 119.1/MWh

Charrúa
USD 117.1/MWh

Puerto Montt
USD 120.8/MWh

Solar and Wind production & BESS dispatch

Total solar generation increased significantly by 18.8% (+46.0 GWh) reaching an average plant factor in the system of 15.5%. The highest plant factor was seen in Crucero with 18.2%, while the lowest was seen in Puerto Montt with 5.2%.

Wind generation had a lower variation than solar, with just a 5.3% decrease in its production (-12.5 GWh) and an average system’s plant factor of 22.4%. The highest plant factor was seen in Charrúa with 27.2% while the lowest was in Diego de Almagro with 6.0%.

BESS injections reduced their load shifting to 34.1 GWh, a decrease of 2.5 GWh. The highest injections were seen in Crucero with 27.9 GWh, while the lowest were seen in Pan de Azúcar with just 43.4 MWh.

This week’s curtailment rate was 5.4% for wind and 13.2% for solar, reaching a mixed average curtailment rate of 9.9% (lower than last week’s average curtailment rate of 21.8%).