From Global to Local: Learning from Worldwide CSP Successes to Drive Chile’s Solar Power Industry Forward

Abstract

Concentrated Solar Power (CSP) technology offers a promising solution for enhancing the stability and reliability of renewable energy systems, particularly in regions with high solar resource availability like Chile. However, CSP deployment faces significant challenges, including technological mistrust, high costs, and regulatory barriers that hinder its growth. This study provides an in-depth analysis of global CSP successes and identifies key strategies and challenges relevant to Chile's context through a mixed-methods approach, including a comprehensive literature review and stakeholder interviews with key players in the Chilean CSP industry. The results reveal significant technological, regulatory, and financial barriers to CSP deployment, including issues with thermal energy storage (TES) systems, specifically the failures of molten salt tanks. Despite recent declines in CSP capital expenditures and the potential for further cost reductions, the study highlights the critical need for regulatory reforms and tailored policy support to address current market and technological limitations. Key recommendations include enhancing R&D investments to improve TES reliability, streamlining permitting processes, and fostering public-private partnerships to unlock CSP's full potential. The findings underscore the necessity of strategic incentives and business model innovations to enable the commercial-scale deployment of CSP in Chile, ultimately supporting the country's decarbonization goals and strengthening energy security.