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: Determining the availability of renewable sources on a particular site would result in increasing the efficiency of buildings through appropriate design. The overall aim of the project is to develop a pioneering software tool allowing the assessment of possible energy sources for any building design project. The package would allow the user to simulate the efficiency of the Passive Solar Space Heating referred in the Low and Zero Carbon Energy Sources (LZCES) Strategic Guide stated by the Office of the Deputy Prime Minister (2006) and the Building Regulations. This research paper presents the tool for modelling the passive solar sources availability in relation to low-carbon building. A 3-month experimental set up monitoring a solar house in West Lothian, Scotland, was also undertaken to validate the simulation tool. Experimental and simulation results were found in good agreement following a one-to-one relationship demonstrating the ability of the newly developed tool to assess potential solar gain available for buildings. This modelling tool is highly valuable in consideration of the part L of the Building Regulations (updated in 2010).

Abstract: Chile is undergoing a remarkable energy matrix transition to renewable energy. Renewable energies are expanding extraordinarily fast, exceeding earlier predictions. As a result, the country is expected to meet its 2025 goal of generating 20% of its electricity from renewable energy sources quite before. Chile has become one of the first countries in the world with subsidy-free markets, where renewable projects compete directly with other conventional sources. Favorable market conditions and successful policy reforms were keys to fostering this renewable energy development. Although the country has achieved a substantial growth in renewable energy investment in a relatively short period of time, this optimism should be treated with caution. A successful transition requires a combination of a clear decision making, persistent and consistent government policies, and a clear commitment to tackling challenges to accommodate renewable energy in the power system. In this context, this paper analyses the Chilean renewable industry and the required government policies to succeed in this transition. For this purpose, we identify several critical factors that have attracted and that could attract investment to the renewable energy sector and propose key recommendations to effectively address the major challenges faced for the future development of the industry.

Abstract: Chile has become one of the first few countries where renewable sources compete directly with conventional generation in price-based auctions. Moreover, the results of energy auctions during the last few years show a remarkable transition from conventional fossil fuels to renewable energies. In fact, the energy auction in 2017, to provide energy to customers from distribution companies, achieved a massive expansion in renewable technology at one of the lowest prices in the world. These positive results prompted the question if such results were permanent or temporal due to factors with limited effects. In this regard, this paper studies the key factors that drove the significant rise of renewable technologies in Chilean energy auctions, obtaining valuable lessons for regulators, not only in Chile, but also in the region and the world. For this purpose, we considered a well-proven method based on a hybrid multicriteria decision-making model to examine and prioritize the main drivers of the expansion of renewables in auctions. The results showed that some specific characteristics of the auction design, particularly the hourly supply blocks, the lead time for project construction, and contract duration, were the most significant drivers for the expansion of renewables in energy auctions. Moreover, the results showed that, provided that the auction design accommodates for such drivers, solar energy ends up as the most attractive technology in the Chilean auctions. The research also shows the main findings are robust by the application of a probabilistic sensitivity analysis.

Abstract: In the U.S., individual states enact Renewable Portfolio Standards (RPSs) for renewable electricity production with little coordination. Each state imposes restrictions on the amounts and locations of qualifying renewable generation. Using a co-optimization (transmission and generation) planning model, we quantify the long run economic benefits of allowing flexibility in the trading of Renewable Energy Credits (RECs) among the U.S. states belonging to the Western Electricity Coordinating Council (WECC). We characterize flexibility in terms of the amount and geographic eligibility of out-of-state RECs that can be used to meet a state's RPS goal. Although more trade would be expected to have economic benefits, neither the size of these benefits nor the effects of such trading on infrastructure investments, CO2 emissions and energy prices have been previously quantified. We find that up to 90% of the economic benefits are captured if approximately 25% of unbundled RECs are allowed to be acquired from out of state. Furthermore, increasing REC trading flexibility does not necessarily result in either higher transmission investment costs or a substantial impact on CO2 emissions. Finally, increasing REC trading flexibility decreases energy prices in some states and increases them elsewhere, while the WECC-wide average energy price decreases.

Abstract: Several countries are adopting plans to reduce the contaminant emissions from the energy sector through renewable energy integration and restrictions on fossil fuel generation. This process poses important computational and methodological challenges on expansion planning modeling due to the operational details needed for a proper analysis. In this context, this paper develops a planning model including an effective representation of the operational aspects of the system to understand the key role of flexible resources under strong decarbonization processes in highly renewable power systems. A case study is developed for the Chilean power system, which is currently undergoing an ambitious coal phase-out process, including the analysis of a scenario that leads to a completely renewable generation mix. The results show that highly renewable generation mixes are feasible, but rely on an effective balance of the key flexibility attributes of the system including ramping, storage, and transmission capacities. Further, such balance allows for faster decarbonization goals to remain in a similar cost range, through the deployment of flexible capacity in earlier stages of the planning horizon.