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Benavides, C., Diaz, M., O' Ryan, R., Gwinner, S., & Sierra, E. (2021). Methodology to analyse the impact of an emissions trading system in Chile. Clim. Policy, 21(8), 1099–1110.
Abstract: In the context of updating the 2015 Nationally Determined Contribution (NDC), the government of Chile has updated its estimates of compliance costs for a series of mitigation actions with an emphasis on the energy sector as the main source of its greenhouse gas emissions. Using the information developed in this process, we assess the impact on compliance costs of increasing the flexibility for sources by introducing different emissions trading schemes. For this we develop a detailed optimization model that represents the operational and investment decisions that could be taken by the energy generation, industrial and mining sectors if an Emissions Trading System (ETS) was implemented. An ETS with two cap and trade options is analysed together with an offset mechanism for sources not included in the ETS. Also, two policy goals are considered: a stringent 76% sectoral reduction goal in 2050 similar to Chile's current strict NDC, and a more lax 46% goal similar to Chile's initial 2015 NDC proposal. The results show that (i) cost reductions from increased flexibility for Chile's current strict NDC are significant, and that offsets can play an important role; (ii) the stringency of the reduction goal affects the magnitude of the cost savings related to flexibility and, surprisingly, total abatement costs are negative (i.e. there are benefits) for the 46% reduction goal. In this latter case, the most significant cost reductions result from compelling firms to comply with their allowances in each sector, not increased flexibility. These results highlight the policy relevance of case by case analysis using a modelling approach similar to the one we develop here. Key policy insights ETS implementation can help Chile meet its mitigation commitment for 2050. The compliance costs can vary significantly depending on the flexibility implemented in the emissions trading schemes. Optimization models can help decision-makers define the attributes of an ETS, such as the sectors that should participate, the cap, and the percentage of offsets. The proposed methodology also highlights and quantifies the offsets that can be acquired from sectors that are not part of an ETS, such as forestry, agriculture, and the waste sector. The possibility to acquire of offsets could reduce significantly the cost for industries that participate of an ETS.
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Genco, F., & Genco, G. (2019). Nuclear desalination in Chile: a competitive solution. Desalin. Water Treat., 140, 24–34.
Abstract: Renewable energy sources are considered the main drive for developing at least 70% of the total energy in Chile by 2050. All major international greenhouse gases reduction agreements include growth of renewable energy sources and nuclear power as the only ways to significantly reduce emissions by the decade 2040-50. Chile's energy production matrix still relies heavily on fossil fuels, making very difficult to match the goal targeted by international agreements. For these reasons, the possibility of using nuclear power plants is considered. Small modular reactors (SMRs) in particular seems particularly suitable for a country like Chile for many reasons: SMRs are scalable and can provide energy in remote locations with no or limited grids (Atacama desert); SMRs can cope easily with future demands for expansion, thanks to their modularity; SMRs are cost effective and use all the latest developments in safety. This paper examines, using IAEA DEEP 5 economic software, the costs of nuclear desalinated water produced for the Chilean mining industry. Comparisons with respect to existing fossil fuels solutions show that the final cost is very competitive and allow for significant reduction of CO2 emissions.
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Genco, F., & Gengo, G. (2021). Selection of energy matrix sources in Chile using a fuzzy logic decision approach. Energy Syst., 12(2), 411–429.
Abstract: Chile's 2050 energy policy ultimate goals are to produce a sustainable model of economic growth respectful of the environment where energy is produced efficiently and reliably. Renewable energy sources are considered the main drive for developing by 2050 at least 70% of the total energy in Chile. This study aims to provide a quantitative analysis for the selection of the most sustainable energy production methods using the compromise ranking method (VIKOR) that uses maximum group utility for the majority and a minimum of individual regret for the opponent. Since all evaluations are provided via intervals, the possible degree theory is used to compare them. Nine major criteria are critically used for this purpose and prioritized using analytical hierarchical process (AHP). Since Chile's energy production matrix still relies heavily on fossil fuels with major concerns of GHG emissions, all major potential energy sources in Chile are considered including ocean energy in addition to nuclear energy. This study shows that biomasses are the best compromise solution and that traditional and modern nuclear energy plants score consistently better than solar power. Large hydro power plants rank very high but in light of the social opposition present in the country, they might not be easy to build as hoped. Ocean power is far superior to geothermal energy and comparable to wind power and for this reason it should be considered together with nuclear power for the future Chilean energy matrix.
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Markou, G., & Genco, F. (2019). Seismic assessment of small modular reactors: NuScale case study for the 8.8 Mw earthquake in Chile. Nucl. Eng. Des., 342, 176–204.
Abstract: Reducing greenhouse gas emissions and improving energy production sustainability is a paramount of Chile's 2050 energy policy. This though, is difficult to achieve without some degree of nuclear power involvement, given that the geography of the country consists of many areas that are practically off-grid, whereas cannot be developed and financially exploited due to the lack of basic commodities such as water and electricity. Recently small modular reactors (SMRs) have gained lots of attention by both researchers and world policy makers for their promised capabilities of enhanced safety systems, affordable costs and competitive scalability. SMRs can be located in remote areas and at this time are being actively developed in Argentina, USA, Brazil, Russia, China, South Korea, Japan, India and South Africa. Chile's 2010 earthquake and Fukushima's 2011 nuclear disaster have increased significantly both the population's fear and opposition to Nuclear Power Energy for the possible consequences of radiation on the lives of people. This paper aims to study the seismic resistance of a typical nuclear structure, being at time proposed in Small Modular Reactors, by using earthquake conditions typically seen in Chile. Since many designs are under study, a NuScale reactor from USA is analyzed under these extreme loading conditions. The major advantages of the NuScale reactor are in the power scalability (it can go from 1 to 12 reactor cores producing from 60 to 720 MWe), limited nuclear fuel concentration, modules allocated below grade and high strength steel containments fully immersed in water. The cooling effect beyond Design Basis Accident is ensured indefinitely, which induces a significant safety factor in the case of an accident. For the purpose of this study a detailed 3D detailed structural model was developed, reproducing the NuScale reactor's reinforced concrete framing system, where nonlinear analyses was performed to assess the overall mechanical response of the structure. The framing system has been tested under high seismic excitations typically seen in Chile (Mw > 8.0), showing high resistance and capability to cope with the developed forces due to its design. Based on a Soil-Structure Interaction analysis, it was also found that the NuScale framing system manages to maintain a low-stress level at the interaction surface between the foundation and the soil, where the structural system was found to be able to withstand significant earthquake loads. Finally, further investigation is deemed necessary in order to study the potential damages of the structure in the case of other hazards such as tsunami events, blast loads, etc.
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Nasirov, S., Agostini, C., Silva, C., & Caceres, G. (2018). Renewable energy transition: a market-driven solution for the energy and environmental concerns in Chile. Clean Technol. Environ. Policy, 20(1), 3–12.
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.
Keywords: Energy transition; Energy policy; Renewable energy technologies; Chile
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Sanchez-Lopez, M., Moreno, R., Alvarado, D., Suazo-Martinez, C., Negrete-Pincetic, M., Olivares, D., et al. (2022). The diverse impacts of COVID-19 on electricity demand: The case of Chile. Int. J. Electr. Power Energy Syst., 138, 107883.
Abstract: This paper analyzes the impacts of the first wave of COVID-19 (March 2020 -September 2020) on the electricity demand of different types of consumers in Chile, including residential, commercial, and industrial demand. We leverage data from 230 thousand smart meters of residential and commercial consumers in 32 communes of Santiago (the capital city of Chile), which allows us to investigate the evolution of their demands with an hourly temporal resolution. Additionally, we use demand data of large industrial consumers provided by the Chilean system operator to study the impact of the pandemic on different economic sectors. This paper demonstrates that the COVID-19 pandemic, and the associated containment measures, have featured a drastically different impact on the various types of consumers in Chile. In particular, we show that the demand of residential consumers has increased throughout the first wave, even when we isolate the effects of the pandemic from those related to weather. Furthermore, we study how these effects change in different communes of Santiago, contrasting our findings with the socio-economic levels of the population. In effect, we find different demand response patterns depending on the socio-economic background of consumers. We also show that commercial demand has significantly declined due to the containment measures implemented and that the hospitality and construction economic sectors have been the most affected in the country.
Keywords: Electricity demand; COVID-19; Smart meters; Energy policy
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