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Annex 4.1 Current status of projects under the Netbilling Law and PMGD projects

Distributed generation in its various scales has been widely accepted in the Chilean electricity sector, both the generation received under the Netbilling Law and the PMGD have grown substantially since their connection and remuneration were regulated. The Netbilling projects add a capacity of approximately 19.93 MW to August 2018, while PMGDs at the same date total approximately 607 MW.

The Netbilling Law in Chile began to operate effectively from October 2014 so it is a very new regulation. However, already in February of 2015 it had begun the commissioning of the first projects covered by this Law and its increase has not ceased. The requests for connection to the distribution companies started the same month of publication of the regulation. Likewise, the number of monthly commissioning declarations has increased considerably during these years, reaching a total of 3653 installations in the month of August 2018.

Figure 4 shows declarations of commissioning of the projects from the beginning of the of the Netbilling Law until August 2018.

Figure 4: Installations declared in compliance with the Netbilling Law
Source: SEC

The power of the projects covered by the Netbilling Law are mostly very small projects under 5 kW (85% of the installations have a power of less than 5 kW and represent 19% of the total power). Figure 5 shows the distribution of facilities according to their power range both in quantity and their contribution to the total capacity August 2018.

Figure 5: Distributed generation projects by size and contribution of power of each segment 
Source: SEC.

A decade ago there was a significant development of typically hydraulic and diesel PMGD projects, but for 4 years there has been a growing development of wind and solar projects and are projected to continue with this trend. Figure 6 presents the evolution of the number of PMGD projects by technology between 2007 and August 2018.

Figure 6: Evolution of PMGD projects by technology
Source: SEC.