Decarbonizing the Chilean Electric Power System: A Prospective Analysis of Alternative Carbon Emissions Policies
In this paper, we investigate potential pathways for achieving deep reductions in CO<sub>2</sub> emissions by 2050 in the Chilean electric power system. We simulate the evolution of the power system using a long-term planning model for policy analysis that identifies investments and oper...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-08-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/14/16/4768 |
| _version_ | 1797524073834610688 |
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| author | Frédéric Babonneau Javiera Barrera Javiera Toledo |
| author_facet | Frédéric Babonneau Javiera Barrera Javiera Toledo |
| author_sort | Frédéric Babonneau |
| collection | DOAJ |
| description | In this paper, we investigate potential pathways for achieving deep reductions in CO<sub>2</sub> emissions by 2050 in the Chilean electric power system. We simulate the evolution of the power system using a long-term planning model for policy analysis that identifies investments and operation strategies to meet demand and CO<sub>2</sub> emissions reductions at the lowest possible cost. The model considers a simplified representation of the main transmission network and representative days to simulate operations considering the variability of demand and renewable resources at different geographical locations. We perform a scenario analysis assuming different ambitious renewable energy and emission reduction targets by 2050. As observed in other studies, we show that the incremental cost of reducing CO<sub>2</sub> emissions without carbon capture or offset alternatives increases significantly as the system approaches zero emissions. Indeed, the carbon tax is multiplied by a factor of 4 to eliminate the last Mt of CO<sub>2</sub> emissions, i.e., from 2000 to almost 8500 USD/tCO<sub>2</sub> in 2050. This result highlights the importance of implementing technology-neutral mechanisms that help investors identify the most cost-efficient actions to reduce CO<sub>2</sub> emissions. Our analysis shows that Carbon Capture and Storage could permit to divide by more than two the total system cost of a 100% renewable scenario. Furthermore, it also illustrates the importance of implementing economy-wide carbon emissions policies that ensure that the incremental costs to reduce CO<sub>2</sub> emissions are roughly similar across different sectors of the economy. |
| first_indexed | 2024-03-10T08:52:10Z |
| format | Article |
| id | doaj.art-ec14e6ba8b1a48ff8b0a5f69f7d57764 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T08:52:10Z |
| publishDate | 2021-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-ec14e6ba8b1a48ff8b0a5f69f7d577642023-11-22T07:27:11ZengMDPI AGEnergies1996-10732021-08-011416476810.3390/en14164768Decarbonizing the Chilean Electric Power System: A Prospective Analysis of Alternative Carbon Emissions PoliciesFrédéric Babonneau0Javiera Barrera1Javiera Toledo2ORDECSYS, Chêne-Bougeries, Switzerland and Escuela de Negocios, Universidad Adolfo Ibáñez, 7941169 Santiago, ChileFaculty of Engineering and Science, Universidad Adolfo Ibáñez, 7941169 Santiago, ChileMaster Program in Industrial Engineering and Operations Research, Universidad Adolfo Ibáñez, 7941169 Santiago, ChileIn this paper, we investigate potential pathways for achieving deep reductions in CO<sub>2</sub> emissions by 2050 in the Chilean electric power system. We simulate the evolution of the power system using a long-term planning model for policy analysis that identifies investments and operation strategies to meet demand and CO<sub>2</sub> emissions reductions at the lowest possible cost. The model considers a simplified representation of the main transmission network and representative days to simulate operations considering the variability of demand and renewable resources at different geographical locations. We perform a scenario analysis assuming different ambitious renewable energy and emission reduction targets by 2050. As observed in other studies, we show that the incremental cost of reducing CO<sub>2</sub> emissions without carbon capture or offset alternatives increases significantly as the system approaches zero emissions. Indeed, the carbon tax is multiplied by a factor of 4 to eliminate the last Mt of CO<sub>2</sub> emissions, i.e., from 2000 to almost 8500 USD/tCO<sub>2</sub> in 2050. This result highlights the importance of implementing technology-neutral mechanisms that help investors identify the most cost-efficient actions to reduce CO<sub>2</sub> emissions. Our analysis shows that Carbon Capture and Storage could permit to divide by more than two the total system cost of a 100% renewable scenario. Furthermore, it also illustrates the importance of implementing economy-wide carbon emissions policies that ensure that the incremental costs to reduce CO<sub>2</sub> emissions are roughly similar across different sectors of the economy.https://www.mdpi.com/1996-1073/14/16/4768ETEM model100% renewablenet zero emissioncarbon taxcarbon capture and storage |
| spellingShingle | Frédéric Babonneau Javiera Barrera Javiera Toledo Decarbonizing the Chilean Electric Power System: A Prospective Analysis of Alternative Carbon Emissions Policies Energies ETEM model 100% renewable net zero emission carbon tax carbon capture and storage |
| title | Decarbonizing the Chilean Electric Power System: A Prospective Analysis of Alternative Carbon Emissions Policies |
| title_full | Decarbonizing the Chilean Electric Power System: A Prospective Analysis of Alternative Carbon Emissions Policies |
| title_fullStr | Decarbonizing the Chilean Electric Power System: A Prospective Analysis of Alternative Carbon Emissions Policies |
| title_full_unstemmed | Decarbonizing the Chilean Electric Power System: A Prospective Analysis of Alternative Carbon Emissions Policies |
| title_short | Decarbonizing the Chilean Electric Power System: A Prospective Analysis of Alternative Carbon Emissions Policies |
| title_sort | decarbonizing the chilean electric power system a prospective analysis of alternative carbon emissions policies |
| topic | ETEM model 100% renewable net zero emission carbon tax carbon capture and storage |
| url | https://www.mdpi.com/1996-1073/14/16/4768 |
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