Assessment of Self-Dispatch Strategy in a Concentrating Solar Power System: Impact Analysis on the Chilean Spot Electricity Market

Abstract

This study investigates the technical and economic impacts of self-dispatch strategies on Concentrated Solar Power (CSP) plants in Chile’s spot electricity market. The PySAM simulation tool was used to model three dispatch scenarios—Marginal Cost-Responsive Dispatch, Daytime Mandated Dispatch, and Continuous Base Load Dispatch—to assess their effects on energy production, load factors, and financial outcomes at the Crucero and Cardones substations. The findings indicate that the Marginal Cost-Responsive Dispatch strategy optimizes revenue by aligning energy generation with periods of higher market prices. This strategy mitigates the adverse financial impacts of zero-marginal-cost periods, which undermine the viability of more rigid approaches like Daytime Mandated Dispatch. Economic analysis shows that only the Marginal Cost-Responsive Dispatch consistently covers annualized capital expenditures (CAPEX), particularly at lower CAPEX levels. In contrast, the alternative scenarios fail to achieve financial sustainability due to forced generation during low-value periods. Consequently, these results underscore the crucial role of dispatch flexibility in enhancing the economic performance of CSP plants. The study suggests that market regulations should be revised to encourage strategies that enable CSP plants to dynamically respond to market conditions, supporting the broader integration of CSP technology into Chile’s energy market. Such adjustments are crucial for advancing the country’s decarbonization goals. Future research should focus on further developing advanced self-dispatch algorithms and hybrid CSP systems to optimize economic outcomes in increasingly dynamic market environments.