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- W2609005203 abstract "We develop a long-term equilibrium model of electricity and renewable energy certificate (REC) markets to assess the costs of meeting a 70% renewables target by 2050 in Chile. We consider different scenarios of demand growth, resource eligibility (i.e., large hydropower), and transmission system configuration. Our numerical results indicate that the sole characteristics of the available renewable resources in the country and reductions in technology costs will provide sufficient economic incentives for private investors to supply a fraction of renewables larger than 70% for a broad range of scenarios, meaning that the proposed target will likely remain a symbolic government effort. Increasing transmission capacity between the northern and central interconnected systems could reduce total system cost by $400 Million per year and increase the equilibrium share of nonconventional renewable energy (NCRE) in the system from 45% to 52%, without the need for any additional policy incentive. Surprisingly, imposing a 70% of NCRE by 2050 results in a REC price lower than the noncompliance fine used for the current target of 20% of NCRE by 2025, the latter of which represents the country’s maximum willingness to pay for the attributes of electricity supplied from NCRE resources." @default.
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- W2609005203 date "2017-01-01" @default.
- W2609005203 modified "2023-09-27" @default.
- W2609005203 title "Aiming Low and Achieving It: A Long-Term Equilibrium Analysis of a Renewable Policy in Chile" @default.
- W2609005203 doi "https://doi.org/10.2139/ssrn.2928861" @default.
- W2609005203 hasPublicationYear "2017" @default.
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