Chile’s drought leads hydro generation to plummet in July

Chile’s ongoing drought led hydroelectric generation to plummet in July, while use of fossil-fueled energy sources rose sharply.

Hydroelectric output in the country fell by 42.7% compared with July 2020 and 35.4% from June this year, according to the latest report by generation trade group Generadoras de Chile.

Meanwhile, diesel-fuelled generation jumped 667% year-on-year and 390% month-on-month, while coal-based power production was up 29.2% compared with July 2020. Natural gas generation rose 2.3% year-on-year and 17.4% compared with June this year.

In the past year, wind and solar power generation also rose significantly, climbing 31.9% and 34% respectively, due to increased installed capacity for each technology.

Chile faces a difficult situation as rainfall has been very low and this has the potential to put pressure on the country's existing generation matrix.

Last month, the energy ministry and the national energy commission (CNE) published a contingency plan to protect the electricity system from the consequences of a year of exceptional drought and to allow electricity rationing in extreme conditions.

Juan Carlos Olmedo, president of national electricity coordinator CEN, told BNamericas in an interview that it is unlikely that energy rationing will be necessary, as long as the thermoelectric plants in the system are capable of guaranteeing adequate fuel availability.