‘There’s a consensus distribution reform is critical to support increased electrification’

An overhaul of distribution legislation, largely unchanged for several decades, is seen necessary to support and facilitate Chile’s decarbonization push and boost grid resilience. 

Stakeholders within both the renewables and distribution industries have called for modernization.

David Rau, CEO of Chilean solar power solutions company Flux Solar, told BNamericas: “There is consensus that distribution reform is critical to support increased electrification. 

“This includes modernizing the grid with smart technologies that allow for real-time monitoring and management of energy flow, improving efficiency, and reducing downtime.”

Energy minister Diego Pardow recently said a resumption of reform work – which was started by the previous administration – was on the agenda. 

A central task for legislators and technical advisors will be harmonizing the requirements of the multiple stakeholders in Chile’s electricity sector. 

Higher penetration of distributed assets, that is, the likes of rooftop solar panels, fixed energy storage systems and electric vehicles – which are also considered storage units that can potentially inject into the grid – would help Chile achieve its goal of becoming carbon neutral by 2050.

The country is decarbonizing the power grid apace, with a plan to phase out coal-fired power generation by 2040 advancing. But this is just part of the task. The other chunky piece of the jigsaw puzzle is a more complex challenge, given it comprises the country’s homes, businesses and vehicle parks.

In the coming days BNamericas will publish the full Q&A with Rau, who also discusses regulations, investment drivers, and company strategic opportunities. Flux Solar offers energy generation, storage and management solutions for homes as well as for companies and industries.

Rau also serves as VP of Chile’s solar power association, Acesol, an industry ecosystem of more than 150 companies from across the value chain.