Key implications of connecting hydrogen projects to medium-sized systems

The wind energy potential of the southern region and the push for green hydrogen prompted the study "Main Implications of Connecting Hydrogen Projects to Medium-Sized Systems" (2022), conducted by Ohmio for the EnergyPartnership Chile-Alemania, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Chilean Ministry of Energy.

In practice, a significant portion of the study's recommendations was reflected in Law 21.804, most notably: 

– Refinement of electrical system characterization: Functionally defining electrical systems (beyond mere installed capacity) and incorporating mechanisms for reclassification and system transitions to facilitate the integration of large-scale projects and avoid abrupt regulatory shifts when current capacity limits are exceeded.

– Improvement of medium-sized system (SSMM) planning: Reforming objectives to include diversification criteria and encourage investment in renewables and clean integration. Additionally, it recommends extending the investment recognition period beyond four years to reduce uncertainty for high-cost projects.

– Strengthening competition: It indicates that vertical disintegration is not necessarily the solution but proposes alternatives to foster competition, such as energy auctions and market monitoring.

Published in December 2022