Despite the fact that the rivers of the Ñuble region have a combined potential for hydroelectric generation estimated at a power of 838 MW, which would allow the construction of 68 plants, and that there are more than a dozen projects that obtained environmental approval in the last decade Currently, there are only two mini run-of-the-river plants in operation (Itata and El Pinar), which have a total power of 31.5 MW, in addition to the Ñuble (Hidroñuble) plant, in San Fabián, which would be the largest in the region. with a power of 136 MW, but its construction was paralyzed in 2018 due to financing difficulties on the part of its owner, Hidroeléctrica Ñuble SpA, a subsidiary of Eléctrica Puntilla, given the change in the electricity price scenario.
In other words, today the region takes advantage of only 3.7% of its hydroelectric generation potential.
And the emergence of more competitive renewable sources, such as solar and wind, pushed energy values down, marking a trend that has continued to this day, which is evident when verifying that, in Ñuble, since In 2017, no hydroelectric project has been presented to the Environmental Evaluation Service, and as a counterpart, in the last five years more than 30 photovoltaic parks have been built, totaling 132.9 MW of gross power, which is equivalent to 51% of the regional installed capacity, and there are also four others under construction and a dozen under environmental evaluation or already approved. Added to these are eight wind projects whose completion would allow the total installed power in the region to quintuple.
The study “Basis for territorial energy planning in future hydroelectric development”, commissioned by the Ministry of Energy to the Pontificia Universidad Católica de Chile-Teco Group SpA consortium, identified in 2015 that the hydroelectric potential of the rivers of the Itata basin ( Ñuble, Cato, Chillán, Diguillín, Itata, Cholguán and Larqui, among others) reaches 519 MW, which might be used through the construction of small and medium-sized plants in the foothills and in the intermediate depression, without considering the dozen approved projects or under evaluation on that date, which totaled 319 MW, including the Itata run-of-the-river mini plant (20 MW), by Eléctrica Puntilla, on the Itata River, which began operations in 2016; the small El Pinar run-of-the-river plant (11.5 MW), from Aaktei, on the Cholguán River, which has been operating since 2019; the Ñuble plant (136 MW), by Eléctrica Puntilla, on the Ñuble river, whose construction was paralyzed in 2018; as well as a dozen mini-plants approved but not built, such as Trilaleo 2 and 3, on the Trilaleo River; the Molinos de Agua mini-plant, on the Cholguán River; and the Halcones mini-power plant, on the Diguillín River; among others.
Within this potential, the future hydroelectric plant of the La Punilla reservoir (94 MW) also stands out, which is a key piece of the business model of the reservoir concession, currently in the bidding process, where it is worth mentioning that last February the Court Environmental annulled the environmental qualification resolution (RCA) of the Punilla-San Fabián transmission line, which will allow the energy generated to be evacuated.
In the case of the Zapallar and Chillán reservoirs, although they will have the possibility of incorporating hydroelectric plants into their operation, there is no definition in this sense by the Ministry of Public Works.
Hidroñuble seeks investor
On the bed of the Ñuble river, the unfinished works of the Ñuble power plant, of Hidroñuble, a subsidiary of Eléctrica Puntilla, which reached 70% progress, resist the passage of time and water while awaiting its reactivation, an image that irritates to the environmental and social organizations that from the beginning opposed its construction, in fact, have asked the authority to expire their RCA and have denounced the abandonment of the work and the presence of construction materials in the riverbed, which As they warned, they put bathers at risk.
In recent years, the company – which also built the Itata mini-power plant – has tried without success to reactivate the project and, in parallel, has renewed the suspension of works.
When Alejandro Gómez, general manager of Eléctrica Puntilla SA, was consulted regarding the future of the plant, he stated that, “as the president of the board of directors clearly expressed in his letter of Presentation of the 2023 Report (…) ‘its construction remains suspended, waiting to find one or more partners interested in financing the investment required for its completion and start-up. Although the search process has so far been unsuccessful, this is expected to change in the short term, considering that it is the only large-scale project available to restart construction immediately. The current situation of regulatory uncertainty threatens the success of this process, which, as we already expressed, we hope will be resolved during the year 2024.”
“Thus,” the executive continued, “to the extent that the situations identified by the president in his letter are resolved, we will be in a position to resume construction (…) A series of uncertainties presented by the regulation of the electricity market, the which we hope will be resolved in the short term by the sectoral authority.”
Likewise, Gómez flatly denied that the works are abandoned. “It is not effective, we maintain security guards and constant monitoring at the material collection sites, we have an office on the ground with a representative of Hidroñuble, we maintain the nursery in La Vega and, in addition, we continue to comply with all the environmental obligations that we imposes the RCA. In no case is the abandonment of the project being considered.”
The executive also pointed to other relevant factors in that analysis. “The regulatory framework and the active role of social organizations represent a relevant factor in the development of any project and any industry. Dialogue and mutual collaboration can help resolve the various situations and challenges posed by the development of projects, however, they cannot become an obstacle that leads individuals to give up carrying them out, thereby affecting investment. and the future growth of the country,” stated the general manager of Eléctrica Puntilla.
Falcons is not viable today
Another of the key players in Ñuble is the Chilean company Aaktei, led by Pedro Matthei, which developed and currently operates the El Pinar mini-power plant in Yungay, as well as has built energy projects in other regions of the country.
In the Ñuble region, Aaktei achieved in 2018, despite the resistance of social and environmental organizations, the environmental approval of the Halcones run-of-the-river mini-plant (11 MW), on the Diguillín River, although the effort, until now, has not been implemented. translated into the construction of the work and everything indicates that it will not be realized in the short term.
In 2017, Aaktei also submitted to the SEA the environmental impact study of the Pasada Radales Small Hydroelectric Power Plant (15.1 MW), on the Diguillín River, but that same year it gave up continuing with the evaluation process.
Currently, however, the company is focused on other more profitable energy sources, in fact, Aaktei, in alliance with the Uruguayan Hynewgen, entered the SEA last January the Los Coihues Wind Farm project, which it intends to locate in El Carmen and which with its 338 MW of power would become the largest in the region.
Asked regarding this, Matthei declared that, “effectively, the price of energy fell by half, in part due to the emergence of new, more competitive and lower-impact technologies such as solar and wind.”
Regarding the future of hydroelectric projects, the general manager and partner of Aaktei said that, “I can refer to the Halcones project, which is not economically viable or justifiable at present, in a world where solar and wind energy is promoted due to its “less environmental impact and greater capacity to replace fossil fuels.”
They are not currently profitable
Also for the Seremi of Energy in Ñuble, Dennis Rivas, it is unlikely that the approved mini-plants will come to fruition in the short term.
“If the scenario is maintained where, effectively, a run-of-river mini hydraulic power plant has a cost per KW practically 1.5 times that of renewable energies such as photovoltaic and wind, in addition, in the last supply tenders, prices fell Ostensibly, this does not make mini-hydraulic projects profitable; Furthermore, it can be indicated that these sources only have sales energy, but do not have firm power, which does not make them interesting for the electrical system during peak hours,” the authority stated.
Micro plants in channels
However, Rivas stated that it is possible to think regarding the development of micropower plants taking advantage of the flow of irrigation canals. “Yes, it is feasible to build low-power systems, such as the irrigation channels of the Diguillín and Ñuble river surveillance boards, but these projects must be associated with a synergy with the costs of works with the Works Directorate. Hydraulic, for example, such as mitigating waterfalls for erosion, that is, these projects alone are not profitable, in this case, for farmers who have the potential pass-through input of water.”
Along the same lines, the former Ñuble Energy Minister, Manuel Cofré, maintained that there is an opportunity for run-of-the-river micropower plants that might be installed in the region’s canals.
“Today, at least, there is legal certainty, which is no small issue. Remember that in a failed constituent project there was an objection to water rights and also the status of special territories for indigenous peoples. This scenario of uncertainty is overcome. On the other hand, technologies, mainly photovoltaic and wind, have evolved much faster than hydro, so they are more competitive in the world, with lower investment costs and lower operating costs,” Cofré summarized.
Cofré also recognized that permitting and pressure from some groups are also factors that are considered in decision-making, not only in hydroelectric projects, but in all sectors.
He also pointed out the transmission lines that must be built to evacuate the energy generated by the mini-power plants, located mostly in the foothills and mountain ranges. “The difficulty that hydroelectric plants have is that they are, in general, far from the points of consumption. The energy has to be transported, and that has its complications, it has a long process, it has an easement and the actual investment of the line, and all of those are costs,” he explained.
“But the positive thing,” the professional continued, “is that Ñuble is going to have three reservoirs and all the canal networks, I hope they will be built with the criteria to install run-of-the-river minihydros. I believe that some investment synergy can be sought, especially in the new channels, to install these micro-plants in passing.”
The industrial civil engineer argued that “run-of-the-river micropower plants operate during the irrigation season, which is when farmers require the most energy, so we have a very interesting virtuous circle (…) It is important to highlight that they benefit the communities themselves. In addition, having our own generation helps reduce, for example, transmission lines.”
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