The Role of Solar Energy in Chile's Energy Transition

Benjamin Muñoz-Cerro
September 19, 2023

Submitted as coursework for PH240, Stanford University, Fall 2022

Introduction

Fig. 1: Image of the Cerro Dominador solar plant in the Antofagasta Region of Chile" (Source: Wikimedia Commons)

As the world faces the challenge of transitioning to cleaner energy sources, Chile is well-positioned to lead the way in South America. With an aim to transition to a cleaner and more sustainable energy system, the Chilean government has set a target to meet up to 70% of the electrical energy generated from renewable sources by 2050. [1] This move is expected to address the country's increasing energy demand, which is estimated to rise by 30.6% by 2050. Among the various renewable energy sources available, solar energy has emerged as a promising option, especially in the northern regions, where the Atacama Desert provides one of the highest average daily global horizontal irradiation. [2] However, the challenge remains to distribute this solar- generated energy to the central part of the country, which hosts a large population and industries. [3]

While the Chilean governments plan to transition to higher renewable energy consumption is aligned with the world's efforts to mitigate climate change, it will not come without challenges. In this context, its essential to make an assessment of the current state of energy production and consumption in the country and contrast it with the projections for the future.

The National Energy Situation

The largest energy facility in Chile is the Cerro Dominador Solar Power Plant (see Fig. 1), a 220-megawatt (MW) combined concentrated solar power and photovoltaic plant, the first of its kind to be built in Latin America. This system produces solar energy through the use of lenses or mirrors to focus sunlight onto a receiver. The resulting heat energy, generated by the concentrated light, powers a heat engine, typically a steam turbine, that drives an electrical power generator or a thermochemical reaction to produce electricity. At the Cerro Dominador Solar Power Plant, energy production comes from both Concentrated Solar Power (CSP) and Photovoltaics (PV): 110 from CSP and 110 from PV. The construction of the plant started in 2017 and had a total cost of approximately $ 1400 million USD. The primary funding sources were the Inter-American development bank, the World Bank Clean Technology Fund, KfW, and the European Union, contributing 100 million in total between the first three and 15 million coming from the EU. In terms of performance, the plant reached an energy production of 304 GWh. [4,5]

In order to get a better sense of the impact of solar energy on the Chilean governments energy plan, it would be convenient to review quantitative data on some other relevant solar projects in Chile.

The Amanecer Solar CAP plant was launched in June 2014 in the Atacama Desert near Copiap with a capacity of 100 megawatts (MW). The plant has the potential to produce 270 gigawatt- hours (GWh) of electricity annually and was the largest in Latin America at that time of construction, with a total cost of construction of 250m USD. [6]

The last example is the El Romero single-axis tracking solar photovoltaic plant, which will generate 505GWh of clean energy per year. It included 776,000 PV modules and had a construction period of 13 months, with the total investment amounting to $343 million USD. [7]

Given that, in Chile, the total electricity consumption in 2020 was 80.7 TWh, we can make an approximated calculation of the percentage of the total energy consumption that these three main solar energy projects represent: [8]

Cerro Dominador: 304 × 109 Wh
82.7 × 10 12 Wh
= 3.7 × 10-3 (0.37%)
Amanecer CAP: 270 × 109 Wh
82.7 × 10 12 Wh
= 3.3 × 10-3 (0.33%)
El Romero: 505 × 109 (Wh)
82.7 × 10 12 (Wh)
= 6.1 × 10-3 (0.61%)

We need to take this calculations with a grain of salt, but they serve the purpose of informing the magnitudes of the contributions, which is a far more relevant point at this stage in the argumentation. While the numbers are definitely representative of a very efficient and plentiful source of energy, we need to put this in the context of the Chilean governments plan to meet up to 70% of the electrical energy generated from renewable sources by 2050. If we wanted to achieve this goal just by investing in solar energy, with the information from 2020, we would have to build around 6 new plants equivalent to each of the three plants previously mentioned, which would cost around $11958M USD and would take around six years each to build. By this point, we start seeing the necessity to consider different sources of renewable energy to satisfy the demand, as photovoltaic technology would not be enough.

The Future

Currently, 16547 GWh of energy produced in Chile comes from hydroelectric power, representing 47% of the total renewable energy produced in the country. With a lower cost per KWh, hydroelectric power presents itself as an interesting alternative. However, this source of power has been involved in some controversies which have delayed the processes. For instance, the Alto Maipo project, currently under construction, has generated constant resistance from the communities of Cajon del Maipo as scientific literature has shown that it can have a significant impact on the health of the surrounding communities [9] Therefore, while hydroelectric power is a viable and cost-effective option, it is important to consider the potential risks and impacts associated with its implementation, and how this aligns with the governments intention to achieve competitive energy price targets without without sacrificing environmental, social or supply quality objectives.

© Benjamin Muñoz Cerro. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.

References

[1] J. C. Osorio-Aravena et al., "Transition Toward a Fully Renewable-Based Energy System in Chile by 2050 Across Power, Heat, Transport and Desalination Sectors," Int. J. Sustain. Energy Plan. Manage. 25, 77 (2020).

[2] Y. Goswami, F. Kreith, and J. F. Kreider, Principles of Solar Engineering, 2nd Ed (Taylor and Francis, 2000).

[3] A. Ortega et al., "The State of Solar Energy Resource Assessment in Chile," Renew. Energy 35, 2514 (2010).

[4] F. Diaz, M. Rivera and H. Chavez, "Present and Future of the Chilean Electrical Grid," 2019 CHILEAN Conference on Electrical, Electronics Engineering, Information and Communication Technologies, IEEE 8987663, November 2019.

[5] "Reporte Sustentabilidad 2020," Cerro Dominador, 2020.

[6] M. Grágeda et al., "Review and Multi-Criteria Assessment of Solar Energy Projects in Chile," Renew. Sustain. Energy Rev. 59, 583 (2016).

[7] B. Díaz López, "Chile: Acciona Inaugurates the 246 MW El Romero Solar Plant," PV Magazine, 11 Nov 16.

[8] Y. M. Ladeuth, D. D. López y C. A. Socarrás, "Diagnóstico del Consumo de Energía Eléctrica en la Planificación de un Sistema de Gestión y Norma técnica de Calidad ISO 50001:2011," Información Tecnológica 32, 101 (2021)

[9] M. Folchi y F. Godoy, "La Disputa de Significados en torno al Poyecto Hidroeléctrico Alto Maipo (Chile, 2007-2015)," HALAC 6, No, 1, 86 (2016) [Meaning Disputes Around the Alto Maipo Hydroelectric Project (Chile, 2007-2015)].