High energy costs in insular energy systems and the potential for integrating innovative renewable solutions: The case of Chile
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Date
2024
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Abstract
Los sistemas energéticos insulares son fundamentales para una transición energética eficiente debido a sus características geográficas y estructurales y a su dependencia de los combustibles fósiles. La literatura indica que las energías renovables pueden mitigar los elevados costes de explotación y la dependencia de los combustibles fósiles. Sin embargo, los sistemas insulares de los países en desarrollo se enfrentan a retos políticos, técnicos y económicos específicos que requieren un estudio más profundo. Este artículo analiza exhaustivamente los sistemas energéticos insulares chilenos, ofreciendo recomendaciones para aumentar eficientemente la penetración de la generación renovable. Se realiza un análisis detallado del perfil de consumo eléctrico, las políticas actuales y la operación del sistema. Además, se investiga la baja penetración de las energías renovables en estos sistemas, levantando barreras como las limitaciones técnicas, la obstrucción política y la percepción de riesgo en las inversiones. Se presentan recomendaciones políticas para superar estos obstáculos, promoviendo la integración efectiva de las energías renovables en los sistemas insulares de Chile y a nivel global. Las soluciones propuestas incluyen el modelo de negocio de Build-Operate-Transfer (BOT), el modelo de negocio Third-Party-Owned (TPO), la fijación de precios mediante Long-Run Incremental Cost (LRIC) y la concordancia regulatoria. La investigación destaca que, aunque las energías renovables pueden reducir los costes de explotación, las barreras a la integración son el principal reto para aumentar la penetración de la generación renovable. Este estudio aporta valiosas ideas para tomadores de decisión políticos, investigadores e inversionistas interesados en la viabilidad de la generación renovable en sistemas insulares.
Insular energy systems are critical for efficient energy transition due to their geographic and structural characteristics and their reliance on fossil fuels. The literature indicates that renewable energy can mitigate high operating costs and fossil fuel dependence. However, insular systems in developing countries face specific political, technical, and economic challenges that require further study. This article comprehensively analyzes Chilean insular energy systems, offering recommendations for efficiently increasing renewable generation penetration. A detailed analysis of the electricity consumption profile, current policies, and operations is conducted. Additionally, the low penetration of renewable energy in these systems is investigated, identifying barriers such as technical constraints, political obstruction, and risky investments. Policy recommendations to overcome these obstacles are presented, promoting effective integration of renewable energies in Chile's insular systems and globally. Proposed solutions include the Build-Operate-Transfer (BOT) business model, Third-Party-Owned (TPO) business model, Long-Run Incremental Cost (LRIC) pricing, and regulatory concordance. The research highlights that, although renewable energies can reduce operating costs, integration barriers are the main challenge to increase renewable generation penetration. This study provides valuable insights for policymakers, researchers, and investors interested in the feasibility of renewable generation in island systems.
Insular energy systems are critical for efficient energy transition due to their geographic and structural characteristics and their reliance on fossil fuels. The literature indicates that renewable energy can mitigate high operating costs and fossil fuel dependence. However, insular systems in developing countries face specific political, technical, and economic challenges that require further study. This article comprehensively analyzes Chilean insular energy systems, offering recommendations for efficiently increasing renewable generation penetration. A detailed analysis of the electricity consumption profile, current policies, and operations is conducted. Additionally, the low penetration of renewable energy in these systems is investigated, identifying barriers such as technical constraints, political obstruction, and risky investments. Policy recommendations to overcome these obstacles are presented, promoting effective integration of renewable energies in Chile's insular systems and globally. Proposed solutions include the Build-Operate-Transfer (BOT) business model, Third-Party-Owned (TPO) business model, Long-Run Incremental Cost (LRIC) pricing, and regulatory concordance. The research highlights that, although renewable energies can reduce operating costs, integration barriers are the main challenge to increase renewable generation penetration. This study provides valuable insights for policymakers, researchers, and investors interested in the feasibility of renewable generation in island systems.
Description
Tesis (Master of Science in Engineering)--Pontificia Universidad Católica de Chile, 2024
Keywords
Insular energy systems, Island energy, Isolated energy, Regulation, Renewable energy transition, Small island developing states (SIDS), Regulation