1.2. Objectives and scope

Due to the characteristics of the Chilean electricity market model and the regulatory changes associated with the electricity sector and the NCRE, the need to have an updated publication on the electricity market in Chile from the perspective of unconventional renewable energies arises. Moreover, following a significant number of legal modifications made in recent years and especially during 2015 and 2016, changing fundamental aspects for the integration, evaluation, development and operation of NCRE projects. For this reason, this document updates all the contents, including the latest regulatory changes, highlighting their impact on NCRE.

The purpose of this document is to contribute to the development and integration process described in the previous section, providing an analysis of different aspects relevant to the development of NCRE projects from the perspective of a foreign and national investor. It seeks to provide a comprehensive description and analysis of the Chilean electricity market, to guide legal and regulatory fundamentals, business opportunities, obligations and risks associated with market participation, and operational aspects, including costs and payment.

It should be noted that the document does not dwells into aspects of evaluation of the potential of natural resources, selection of technologies and financing schemes. Similarly, it is important to clarify that the scope of this document includes the integration and operation in the market of the NCRE in the SEN, which is conformed by the old SIC and SING systems, since other smaller systems operate under a different economic regime.

In this way, the document aims to guide potential developers of NCRE projects and other stakeholders who do not necessarily have a thorough knowledge of the operation and functionality of the electricity system in Chile.