The exit of Bocamina I and II, and the hardening of the drought in the central zone have increased the price of electricity, which averages US$137 per MWh so far this year.
SIC: cost of energy rises 18% due to exit of coal mines
(Pulse) The shutdown of some coal-fired power plants in recent months, mainly Bocamina I and II (Endesa), Santa María (Colbún) and Campiche (AES Gener), either due to environmental sanctions, failures or maintenance processes, have led to a significant increase in the cost of electricity in the central zone so far in 2014.
According to data from the Economic Load Dispatch Center (CDEC) of the Central Interconnected System (SIC), between January 1 of this year and February 20 -the latest data available- electricity at the Quillota 220 kV node averaged US$137 per MWh, while in the same period of 2013 it reached US$115.7 per MWh.
This means that between one period and the other, energy has risen 18%. In January, the increase compared to December reached 82%.
What is the reason for this increase? According to the latest report from the consulting firm Systep, the exit of coal-fired units during January was replaced by diesel, which explains the increase in the spot market.
Added to this is the fact that hydroelectric generation, although it has recovered its share, is not enough to replace the output of coal-fired units.
“In January, the operation of the SIC was characterized by a decrease in the participation of coal-fired plants, explained by the low generation of the Bocamina 2, Santa María and Campiche plants. This generation was mainly replaced by diesel”, states the consultant in its monthly report.
“The higher participation of diesel generation and the increase in the value of dammed water caused an increase in marginal costs during January. The marginal cost in the Alto Jahuel 220 busbar averaged US$152.4 per MWh. This last value represents an increase of 81.6% with respect to December (US$83.9 per MWh) and an increase of 24.2% with respect to January 2013 (US$122.7 per MWh)”, the report adds.
The consultant highlights that hydro generation increased slightly compared to December 2013, in particular the share of run-of-river hydro plants increased from 21% to 25%.
OUTLOOK FOR 2014
For the rest of the year, the variation in marginal costs will depend mainly on rainfall. This is because, according to the CDEC-SIC’s operating schedule, Bocamina II is expected to resume operations in April of this year, in addition to the return of Bocamina I, which took place a few days ago, as confirmed by the company that operates this thermal complex, Endesa.
In addition, the share of coal in the SIC may not be constant. According to expert estimates, a two-month delay in the entry of the second unit of the complex located in Coronel could raise the average marginal costs in the Alto Jahuel 220 kV busbar between US$20 and US$30 per MWh during the period of the delay in the entry of the unit.
