Unveiling the potential for combined heat and power in Chilean industry - A policy perspective

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.