Weekly Market Analytics Chile Vol 12 Num 3

VOL 12 | NUM 3 | 8 August 2025

Power Markets Weekly

CHILE | 28 July - 3 August 2025

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Wind displaces thermal generation amid strong resource week

Global SEN operation

The average price in Polpaico was USD 53.3/MWh, a 29% decrease from the previous week, though still 8% higher than the same week 1 year ago.

Marginal cost evolution in Polpaico during past years

Generation mix saw significant changes:

Wind generation soared, increasing its share by 7.5 pp. with a boost of +124 GWh.
Gas and coal generation fell sharply, by 4.8 pp. and 4.0 pp., respectively.
Solar output declined by 3.0 pp. due to a less sunny week.
Run-of-river and dam generation increased by 3.9 pp. and 1.0 pp. respectively, supported by favorable hydrological conditions.

The variable cost of dam stored energy decreased to USD 77.9/MWh.

The weekly demand peak occurred on Thursday at 4 PM, reaching 11.6 GW. Notably, wind and solar contributed 57.4% of the generation mix at that hour.

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

Transmission constraints continued to decouple zones:

Puerto Montt zone was decoupled from the rest of the system Monday to Friday, as wind output congested the 220 kV Charrúa – Santa Clara line, leading to curtailment of wind energy.
Northern zones (Pan de Azúcar and northward) faced congestion in the 500 kV Nueva Pan de Azúcar – Polpaico line, particularly at the beginning of the week, limiting the transfer of solar and wind energy to central areas.

The highest number of zero-price hours occurred in Puerto Montt zone: 56, followed by northern zones: Crucero 43, Diego de Almagro 40, Pan de Azúcar 34 and Polpaico and Charrúa 11.

The highest marginal cost was recorded on Tuesday, 29 July at 6 AM in Polpaico, reaching USD 93.2/MWh, with several gas units setting the price and low wind generation.

Marginal cost evolution

Crucero
USD 39.8/MWh

D. de Almagro
USD 40.2/MWh

Pan de Azúcar
USD 41.9/MWh

Polpaico
USD 53.3/MWh

Charrúa
USD 52.0/MWh

Puerto Montt
USD 35.4/MWh

Solar and Wind production & BESS dispatch

Solar generation exhibited a system average plant factor of 13.5% this week. The highest solar performance was observed in the Crucero zone, where the plant factor reached 18.8%, while the lowest occurred in Puerto Montt, with only 5.8%, reflecting the less favorable irradiance of the area.

Wind generation increased substantially across the country, with all zones showing improved output. The average wind plant factor reached 33.3%, with Puerto Montt achieving the highest value at 52.4%, and Crucero registering the lowest at 21.9%. The Pan de Azúcar zone experienced the most notable increase, with an additional 72.5 GWh of wind energy generated compared to the previous week.

BESS showed a decline in total injections by approximately 11% (equivalent to –4.4 GWh), primarily due to the lower availability of solar generation for charging. The BESS discharge capture prices varied by zone and were between USD 68.8/MWh and USD 44.7/MWh.

Curtailment levels increased this week. Wind curtailment rate reached 5.9%, while solar curtailment was significantly higher at 12.3%. The combined weighted average solar and wind curtailment reached 9.7%, a noticeable increase from 6.8% the previous week.