Abstract: Renewable energies (RE) in Chile and around the world have experienced outstanding growth in recent years. However, RE technologies such as solar photovoltaic and wind generate an imbalance between generation (offer) and consumption (demand) because of their intermittent and variable nature. Moreover, RE & rsquo;s natural variability makes it necessary for conventional technologies to play a significant role in adjusting for the imbalance in the electric system frequency. As variable RE penetration grows, the need for frequency regulation will increase and, depending on how those higher costs are financed, this could lead to a disincentive to invest in conventional plants that provide that service. In this paper we study the impact of increased photovoltaic energy penetration, the leading RE in Chile, on the profitability of different conventional generation technologies. Specifically, we analyze the role that the frequency control remuneration mechanism has on that impact. For this purpose, four different solar photovoltaic penetration scenarios are simulated in Chile & rsquo;s Northern System, comparing two payment criteria for frequency regulation services: i) a cost-based pricing system whose payments relate to the incurred costs and ii) a market-based pricing system where the marginal cost of providing the services is paid. The results show that as installed photovoltaic capacity increases, the average marginal cost of energy (operation cost) decreases due to a displacement of more expensive power plants, but at the same time, investment cost may increase. In the long run, contract prices change as a result of falling operational costs and rising investment cost, resulting in changes in the profitability of all technologies. Finally, while both cost-based and market-based systems reward the ability to regulate frequency, the technologies performing the regulation receive different payments for the service, affecting both their profitability and the incentives for investment.

Abstract: Over the past decade, the promotion of renewable energy projects in Chile, especially solar energy projects, has become increasingly important, as energy dependence from foreign fossil fuels has increased and concerns regarding climate change continue to grow, posing a significant challenge to the local economy. Even though recent developments toward a more sustainable energy matrix in Chile have significantly increased the investment in the solar energy sector, social and environmental fragilities, combined with the lack of well-functioning institutions and the historical marginalization of indigenous communities who have been affected by several energy projects, result in gradually increasing conflictive situations. Unless proper mechanisms are designed and implemented to rapidly and correctly address these challenges, Chile could miss the opportunities that solar energy projects can provide to the development of its communities and to the economic growth of its regions. This article studies solar photovoltaics planning in Chile, focusing on the recent developments and the main challenges ahead, and proposes policy recommendations for effectively addressing these challenges.

Abstract: Market liberalization and the expansion of variable renewable energy sources in power systems have made the dynamics of electricity prices more uncertain, leading them to show high volatility with sudden, unexpected price spikes. Thus, developing more accurate price modeling and forecasting techniques is a challenge for all market par-ticipants and regulatory authorities. This paper proposes a forecasting approach based on using auction data to fit supply and demand electricity curves. More specifically, we fit linear (LinX-Model) and logistic (LogX-Model) curves to historical sale and purchase bidding data from the Iberian electricity market to estimate structural parameters from 2015 to 2019. Then we use time series models on structural parameters to predict day-ahead prices. Our results provide a solid framework for forecasting electricity prices by capturing the structural characteristics of markets.& COPY; 2022 The Author(s). Published by Elsevier B.V. on behalf of International Institute of Forecasters. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

Abstract: The energy demand in Chile arises mostly from mining, its largest industry that accounts for about 35% of total electricity consumption. Energy generation to satisfy this demand depends completely on imported fossil fuels. As a result, the mining industry faces several energy related challenges. In particular, the cost and environmental impact of fuel sources are threatening the competitiveness of the industry and urge for new developments. In that regard, the importance of using clean and cost-competitive renewable energy sources has increased significantly in Chile and several government policies helped to increase the investment in them. The impact has been particularly large in the development of solar energy in the northern part of the country, where almost all mines are located. In fact, the country has become one of the largest solar markets in Latin America thanks to its abundant solar resources, favorable market conditions, and successful policy reforms. Solar energy then, could play a significant role as an alternative to satisfy the mining industry's energy demand offering a broad range of technological solutions. This study examines the key issues – barriers and drivers-influencing the adoption of solar technologies in the Chilean mining industry from the perspective of mining actors. As a result of the analysis the paper also provides a scope for appropriate policy interventions.

Abstract: In recent years, the development of renewable energies in the electricity market in Chile has gained significant attention as a key alternative for energy sources diversification and meeting three key policy objectives: energy availability, environmental protection, and social-economic development. This study aims to assess various renewable energy sources in order to select suitable sources to accomplish the different policy goals in a country like Chile. For this purpose, a Multi-Criteria Decision Analysis (MCDA) method is employed to evaluate the relative importance of policy objectives. In addition, a sensitivity analysis is conducted to build various different policy scenarios measuring the impact of variations on the current weights of the decision criteria. The results show that solar, wind, and small hydro are the preferred sources in the Chilean renewable energy portfolio, maximizing the objective of meeting the three policy goals at the same time.

Abstract: Over the last few years, Chile has witnessed an extraordinary energy transformation that has turned the country into one of the largest renewable energy markets in South America. This study examines the impact of renewable energy (RE) technologies from the perspective of job creation opportunities in Chile. For this purpose, the study introduces an analytical assessment model that will be used to assess the direct impacts on employment generated by several policy scenarios aimed at reducing CO2 emissions. The direct impacts on employment in Chile were calculated up to 2026 according to three energy scenarios constructed using the SWITCH-Chile energy model. The empirical results show that RE technologies (solar PV, wind, hydro) can generate more employment per unit of energy than coal and natural gas. According to the scenario projecting the largest reduction of CO2 emissions, which features a dominant participation of renewable energies, up to 20,958 jobs can be created in the Chilean energy sector by 2026. The proposed model can be used to design energy programs as a direct stimulus of employment in the RE industry. Furthermore, policy recommendations are provided based on the results to effectively address changes in employment perspectives for the RE industry. (C) 2021 Elsevier Ltd. All rights reserved.

Abstract: Medium size developing countries like Chile that commit to decarbonization goals need to carefully assess the trade-offs associated to their intensity and timing, since most of the technologies required will be absorbed, not produced, by these countries. A rapid expansion of renewables in the Chilean energy matrix, mostly thanks to exceptional solar and wind resources, combined with a rapid decrease in the cost of renewable energy technologies, intensified current policy debates to reduce the role of coal, which is the largest source of CO2 emissions in the generation mix. Recently, the main generation companies in Chile made a voluntary commitment to not invest in new coal projects that do not include carbon capture and storage systems. In addition, the Chilean government announced its plans to phase out coal plants completely by 2040. In this context, the aim of this research is to study the economy-wide and emission reduction impacts of different decarbonization paths in the Chilean power sector. For this purpose, we consider dynamic simulations using a new energy-oriented version of the Computable General Equilibrium Model (CGE)- General Equilibrium Model for the Chilean Economy (ECOGEM)-Chile which is soft linked to the bottom-up engineering energy model. The results show the major impacts under both the business as usual (BAU) scenario and the coal phase-out scenario. Additionally, the study discusses to what extent the ambitious decarbonization goals of the Chilean government are coherent with the current technological limitations.

Abstract: Chile has become increasingly dependent on energy imports and its energy demand has grown exponentially in the past decade, impacting the environment and the production costs in the economy. In fact, electricity prices have doubled and it is expected that they will soar in the next decade if Chile does not find a solution for its dependence on imported energy resources. Recent developments, particularly improvements in the regulatory framework and incentives for renewables, have accelerated the growth process and investment opportunities of renewable energy technologies (RETs). However, RETs have faced a number of constraints affecting their penetration. In this article, we review the existing opportunities and also identify and rank the major barrier categories for the development of RETs in the Chilean context. For this purpose, the analytical hierarchy process technique has been utilized for ranking the barriers based on experts' opinions (selected from academia and industry).