Economic Initiatives and Energy Transfers in Chile and Argentina
Key Ideas
  • Chile implements an electricity consumption subsidy scheme from 2024-26 to assist vulnerable households, part of efforts to normalize the sector amid a multibillion-dollar generator debt pile.
  • Argentina establishes three new companies to operate hydroelectric power stations as concession contracts expire, with plans to eventually auction new operating contracts for these plants.
  • Chile publishes a decree setting safety rules for fixed hydrogen installations, aligning with the national hydrogen strategy and action plan for 2023-30, showcasing commitment to the hydrogen sector.
  • Efforts in both Chile and Argentina reflect positive steps towards addressing energy challenges and modernizing infrastructure for a sustainable future.
Chile has introduced an end-user electricity consumption subsidy scheme from 2024-26, targeting vulnerable households and aiming to address a significant generator debt pile while unfreezing regulated client power rates. The initiative allows clients to apply for the subsidy through a government online platform. Additionally, discussions are underway to potentially expand the scope of the subsidy scheme, with considerations such as a temporary carbon tax increase. This move comes in the backdrop of efforts to normalize the energy sector and mitigate the impact of rising power bills, expected to increase in the double digits. On the other hand, in Argentina, three companies have been established to operate hydroelectric power stations whose concession contracts have expired. The State firms Energía Argentina and Nucleoeléctrica Argentina are involved in this transition, with plans to transfer the assets to the State and eventually auction new operating contracts for the plants. The move signifies a step towards modernizing energy infrastructure and ensuring efficient operation of these key facilities. Moreover, Chile has also published a decree establishing safety rules for fixed hydrogen installations, showcasing a commitment to the hydrogen sector in alignment with the national hydrogen strategy and the 2023-30 hydrogen action plan. These safety requirements for stationary facilities producing or consuming hydrogen as an energy resource demonstrate the country's dedication to fostering a safe and sustainable environment for hydrogen initiatives. Overall, these economic initiatives and energy transfers in Chile and Argentina reflect positive steps towards addressing energy challenges, supporting vulnerable populations, and modernizing infrastructure for a sustainable and efficient energy future.
ADVANCEH2

Our vision is to be the world's leading online platform for advancing the use of hydrogen as a critical piece needed to deliver net-zero initiatives and the promise of a clean H2 energy future.

© 2024 AdvanceH2, LLC. All rights reserved.