Roundup: Hydrogen action plan, transmission project uncertainty, payment stress

Green hydrogen action plan

Chile has published its 2023-30 green hydrogen action plan, following a public consultation phase.

The plan is designed to guide and support industry development and, among other measures, outlines roles and responsibilities of state entities. 

“Development of green hydrogen in Chile will permit us to advance toward a greener economy for our territories," energy minister Diego Pardow said on social media platform X. "The action plan is a concrete tool, with clear actions, to spur this new industry.” 

Chile has a demonstration plant in operation, another was recently announced, while large-scale projects have started to enter the environmental review system. Stakeholder eyes are on how they progress through the system and hurdles faced, with a common message from developers that drawn out processes could potentially hinder investment. 

An associated challenge for the local and global green hydrogen sector is getting offtake contracts and financing secured for big-ticket projects.

See the plan in the Documents box in the top right corner.

Transmission project

The environmental review and citizen participation division of environmental review agency SEA recommended rejecting a US$324mn zonal transmission project seeking the green light.

Planned by Celeo Chile, the project, submitted in 2020, involves substation and power line work in Maule, Ñuble and Biobío regions.

Local clean energy association Acera said the work was vital for the incorporation into the system of renewables and storage projects totaling 3.7GW in capacity.

The division, in a report, said the project did not fully comply with environmental rules, citing impact on forestry.

A final decision rests with the executive board of SEA.

Sector officials have said zonal transmission is an area where investment is particularly needed, to electrify consumption and meet demand from the commercial and industrial sectors. 

Payment stress

Rising payment delays by Argentina’s wholesale power market administrator Cammesa to generation firms will stress their liquidity and cash flow, rating agency Fitch said in a statement. 

The administration of President Javier Milei has reduced transfers to Cammesa amid a push to trim government spending. On top of this, cash-strapped distributors have also been paying less to Cammesa amid a lag in inflation-linked end-user rate increases.   

ALSO READ: Cammesa debt, priority dispatch auction, thermal plant extension, energy efficiency law 

“Gencos [generation companies] have not received any indication as to when overdue payments will be disbursed,” the statement said. “While they are able to access the local markets to ease working capital needs, further payment delays could affect gencos’ ability to repay debt.”

Click here to read the full Fitch statement