Abstract
Combined Heat and Power (CHP) has again become a key element in international energy and environmental policy, since it is one of the most promising methods of ensuring grid stability, making an energy system more flexible and environmentally friendly. This is particularly true in the case of Chile, which has an energy system that progressively introduced volatile renewable energy sources such as wind and solar energy. This scenario has led to the development of a new regulatory strategy and CHP flagship projects throughout the country. Despite this interest, there has been no analysis of CHP development or the impact of the latest regulatory changes on its evolution. This study presents an updated cadastre of the CHP facilities as of 2018, together with an analysis of its evolution in terms of an energy policy. From this cadastre, interviews with experts, and a review of the regulations and incentives, the study identifies the main policy barriers for CHP development in Chile. Furthermore, this study presents a series of challenges and recommendations for the country.
Highlights
The Combined Heat and Power (CHP) development, an industrially available technology existent already for over a century, was linked to industries with pro duction processes that require steam as input
Due to the lack of studies on the subject, as well as the difficulty of finding data on the status of the CHP facility parks in Chile, this study aims at filling that gap and presents a methodology to generate a cadastre of the CHP plants installed in the country
The first advance in this subject was proposed by Law 19.940, which addresses small-sized energy generation companies whose energy source is unconventional, excluding them from partial or total charges for the use of transmission systems (Ministerio de Economía, Fomento y Reconstruccio n de Chile, 2004)
Summary
The CHP development, an industrially available technology existent already for over a century, was linked to industries with pro duction processes that require steam as input. The most recent incentives for CHP development have been closely linked to various energy policy objectives, such as increasing the competitiveness and efficiency of the system, increasing safety and reducing the use of energy (Hendriks and Blok, 1996; Lemar, 2001; Pade et al, 2013). As the use of NCRES accelerates, CHP plants have been identified as representing an oppor tunity to provide flexibility to the system. For this reason, CHP devel opment in Chile is part of the 2050 Energy Agenda, a route that promotes, among its 38 guidelines, encouraging a high penetration of NCRES in the electricity matrix, using locally available resources, and taking advantage of energy development potential in production pro cesses (Ministerio de Energía de Chile, 2015a)
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