Non-conventional renewable energy law

Country	Chile
Year Implemented	2008
Policy Status	In force
Agency	•National Energy Commission (CNE)
Further Information	•www.cne.cl/cnewww/opencms/08_Normativas/02_energias/renovables.html
Enforcement	Fines for non-compliance of 0.4 monthly tax units (UTM) per MW. In May 2008 this was equivalent to CLP 13, 867 .
Policy Type	•Regulatory Instruments   •Quota Systems
Policy Target	•Bioenergy   •Biomass for Power •Geothermal   •Power •Multiple Renewable Energy Sources   •Power •Ocean   •Tidal •Solar •Solar Photovoltaic •Solar Thermal   •Concentrating Solar Thermal •Wind
Policy Sector	•Electricity
Size of Plant Targeted	Small and Large
Description	The non-conventional renewable energy law (NCRE Law), enacted on 1 April 2008, aims to fulfill future energy requirements and increasement the development of non-conventional renewable energy sources, such as geothermal, wind, solar and tidal, biomass and small hydroelectric plants. The latter will be considered as non-conventional sources to the extent that their energy injections are less than 20MW. However, for a plant producing between 20 and 40MW, a portion of their energy can be considered non-conventional based on a decreasing calculation. Thus, for a plant producing 40MW, the non-conventional energy content would be 0. The law requires companies providing energy in systems with an installed capacity greater than 200MW, to demonstrate that 10% of their total energy trade was injected in the system by non-conventional energy sources. The energy can be produced by their own plants, or by contacting from third-party companies. The quota will come into force at the start of 2010, and until 2014 will require 5% of electricity to come from non-conventional renewable energy sources. Starting from 2015, the obligation will be increased by 0.5% annually, reaching 10% in 2024. The law will apply to all agreements executed as of 31 May 2007 (new agreements, renewals, extensions, or similar arrangements). Non compliance with the law will result in fines of 0.4 UTM (Monthly Tax Unit), equivalent to approximately CLP 13, 867 per MW not obtained from NCRE sources per year. The obligation will last for 25 years (2010-2034).
URL	www.cne.cl/cnewww/opencms/03_Energias/Renovables_no_Convencionales/tipos_energia.html