Regulatory roundup: Chile permitting, Colombia price caps, Peru DG and more

Power project permitting, wind farm analysis

Energy projects involving combined investment of around US$800mn were submitted for environmental review, or accepted for processing, in Chile in recent days.

The biggest among them is EDF’s US$396mn Quebrada Locayo wind park, planned for Coquimbo region, and involving 240MW of installed capacity and a 300MWh battery system. Accepted for processing, the project is due to break ground in October 2026.

Review agency SEA also accepted for processing the US$300mn La Isla standalone battery storage project, filed by Parsosy Inti and planned for Valparaíso region. The initiative involves installing 250MW of batteries with five-hour injection capacity, for 1.25GWh. Construction is due to start in November 2025.

Colombia sets new price caps for renewables, coal-fired generation

Colombia has introduced a two-tiered pricing regime for wholesale electricity sold on the spot market, lowering maximum rates for renewable and coal-powered plants while maintaining higher limits for costlier fuel-based generators.

The move aims to curb inefficiencies and protect final consumers from sharp fluctuations in prices, according to a resolution published by the mines and energy ministry.

“Until now, spot market prices were... determined by the least competitive plants, causing hydro and solar energy to have prices up to 10 times higher than their real production cost," said minister Andrés Camacho. 

Brazil lowers electric power rates

As expected, Brazilian regulator Aneel said that the country’s electric power rate flag for December has been changed to green. 

The flag system indicates generation conditions and costs for power consumers. When production at hydro plants – which produce cheaper energy than thermal plants – is high, Aneel activates the green flag, and when less water is available, the yellow or red flags may be activated, which leads to higher rates for consumers.

After the yellow flag in November, a significant improvement in the country's energy generation conditions paved the way for the change to a green flag this month, meaning an additional 1.89 reais (US$0.31) for every 100kWh consumed will no longer be charged, the regulator said in a press release. 

What’s on the regulatory agenda for Brazil’s electric power sector?

Brazil’s electric power regulator Aneel has approved its regulatory agenda for 2025-26. 

The document is a planning, management and public participation instrument drawn up annually to provide transparency and predictability to the regulatory process.

Local experts told BNamericas that several topics prioritized by the regulator are critical for tackling the bottlenecks in the country’s electric power system. 

Overall, 28 regulatory activities are planned, divided into four thematic areas in order to optimize the decision-making process and the implementation stages: generation & market (G&M), transmission and distribution (T&D), rate and financial regulation (RT&RF), and energy efficiency and consumer (EE&C). 

Chile project lawyer talks territorial management, permitting

Obtaining permits for projects in Chile can present significant challenges for developers, particularly those in the energy, desalination and mining sectors.

A chief factor at play, or at least one of those most debated at present, is the complexity of the permitting process, something which the current administration is trying to address via a pair of bills.

Another important and interrelated factor is territorial planning and, specifically, acceptance of large projects by communities, particularly if some have already been built in their vicinity. 

A further challenge for energy projects in particular is that they, unlike residential developments for example, must be built where energy resources are found. 

Colombia readies new auctions to guarantee energy supply

Colombian power sector regulator Creg has announced plans for three reconfiguration auctions early next year as it seeks to ease fears of a looming electricity deficit. 

The auction will offer contracts for firm energy obligations for the periods 2025-26, 2026-27 and 2027-28, according to a Creg resolution. 

Generators may submit bids involving free capacity from existing plants, projects under development or new generation units, it added.

Peru to further define deployment of distributed generation

Peru’s energy and mines ministry opened consultation for the proposed regulation of distributed generation (DG) connected to the power distribution grid.

The norm aims to increase the contribution of DG by establishing connection, installation, operation and sale guidelines, as called for in legislative decree 1221 to improve electricity distribution.

According to critics, the lack of specific regulation has stymied the rollout of DG. In addition, issues related to pricing, payment and hesitancy on the part of some distributors, among other factors, have stalled regulatory advancement.

Snapshot: The energy scenario awaiting Uruguay's incoming administration

Uruguay’s incoming administration will take the reins of a portfolio geared to decarbonization and energy security.

Easing exposure to imported hydrocarbons and building a sustainable fuels-exporting industry is state policy and no major deviation from that path should occur.

In terms of renewables, president-elect Yamandú Orsi said earlier this year: “We will never abandon, never, ever, the path of development of renewable energy, rather revitalize it, deepen it, but never stop it.” 

Colombia moves to kickstart distributed generation

Colombia has published new rules designed to spur growth in distributed generation and diversify its hydro-dependent energy mix.

Under the changes, self-generators will no longer require authorization to produce electricity that is solely intended for their own consumption.

In addition, self-generators will be able to use existing transmission or distribution networks if the electricity is consumed within their localized systems and not injected to the grid (SIN).

Peru proposes smart grid guidelines, updates generation cost procedure

Peru’s energy and mines ministry published a proposal to establish guidelines for smart metering systems.

The norm would cover technical specifications and technological and performance standards.

According to the ministry, the guidelines will “ensure that SMI [smart metering systems] are accurate, efficient, secure and compatible with the existing and future infrastructure."