Access for Small and Non-Conventional Power Producers: Short Law I and II

Country	Chile
Year Implemented	2004
Policy Status	In force
Date Effective	2004-05
Agency	•Ministry of Economy, Development and Reconstruction
Further Information	•www.cne.cl/cnewww/opencms/
Policy Type	•Financial   •Taxes and Tax Incentives     •Tax Exemption     •Tax Reduction
Policy Target	•Multiple Renewable Energy Sources   •Power
Policy Sector	•Electricity
Size of Plant Targeted	Small and Large
Description	To promote private investment and participation in electricity production, the Short Law I and II allow small power producers and non-conventional renewable energy (NCRE) producers to participate in the spot market and connect to the distribution network. The legislation guarantees all NCRE producers the right to sell their energy to the electricity market at spot or nodal price. Small producers, with a maximum total plant capacity of 9MW, are guaranteed non-discriminatory access conditions to the distribution system. Progressive toll trunk charge exemptions have been set up, from full exemption for less than 9MW capacity plants to no exemption for plants with a capacity of 20MW and greater. In 2005, the Short Law II allowed individual power generators and NCRE producers to sign long-term supply contracts directly with distribution companies.
URL	www.minenergia.cl/minwww/opencms/08_Normativas/02_energias/renovables.html