Economic Impact of CSP Plants with Storage Addressing the Energy Transition in Locations with High Electricity Demand in Chile

Abstract

This study explores the economic implications of hybrid plants combining photovoltaic (PV) and Concentrated Solar Power (CSP) technologies with energy storage in response to Chile's ongoing energy transition. Utilizing the System Advisor Model (SAM), six diverse locations were evaluated to assess energy generation profiles, calculate the Levelized Cost of Energy (LCOE), and analyze gross margins. The key finding is that higher solar multiples or storage capacities do not consistently lead to lower LCOE, primarily due to operational strategies aligning CSP generation profiles with PV. Notably, northern regions consistently yield higher gross margins despite occasional zero marginal costs, while areas near Santiago experience lower gross margins, with Salamanca presenting the lowest margin. This highlights the critical role of available solar resources in shaping economic outcomes.