Aurora pushes for regulatory changes amid rise in Chile’s PMGD pricing benefiting solar energy

GDs have played a crucial role in advancing Chile’s energy landscape, facilitating decentralized power generation. However, the pricing structure supporting them is no longer in sync with market dynamics. The excessive financial incentives granted to solar PMGDs have caused market distortions and an escalation in system expenses.

The primary challenge lies in modifying regulations while ensuring a harmonious distribution of benefits among various stakeholders, including policymakers, national grid operators, utility companies, and PMGD investors.“

The findings are to be presented in a forthcoming public webinar titled “Charting the Future: Chile’s PMGD Stabilized Price Outlook” slated for March 18th from 11:00 AM–12:00 PM SMT. The webinar aims to shed light on potential strategies to address the existing pricing issues in the Chilean energy sector.

Aurora Energy Research, founded in 2013, is a premier global entity offering energy market forecasts and analytics critical for investment and financing decisions. Based in Oxford and operating in 16 offices across the globe, Aurora encompasses a team of 900 experts with expertise in energy, finance, and consulting, providing unparalleled insights into power, renewables, storage, hydrogen, and carbon markets.

The company’s vision is to facilitate the global energy transition through trusted quantitative analysis and top-notch decision-making support, contributing to a sustainable energy future. The firm’s services include market projections for energy stakeholders, advisory services, and cutting-edge software solutions, ensuring clients are equipped with the necessary tools to navigate the evolving energy landscape efficiently.

As the world embraces renewable energy technologies, Chile’s burgeoning solar energy sector demands a shift in regulatory frameworks to ensure an equitable playing field for all participants. Aurora’s recommendations aim to create a pricing model that mirrors market realities, fostering healthy competition while preserving the incentives necessary to sustain the growth of the renewable energy sector. This balanced approach is crucial for ensuring long-term viability and sustainability in Chile’s evolving energy market.

In conclusion, the need for regulatory adjustments in Chile’s PMGD pricing scheme is evident. By aligning pricing structures with market dynamics and minimizing excessive financial incentives for solar PMGDs, Chile can foster a more competitive and sustainable energy sector. Aurora’s insightful analysis sheds light on the complexities of the current pricing model and presents a strategic roadmap for recalibrating Chile’s energy landscape for future growth and efficiency.