Energy Demand Analysis and Policy Instruments Assessment for Mining Industry in Chile

摘要

Northern Chile has the best worldwide solar energy potential to produce energy. Chile can consider this huge potential and meet the demand of energy-intensive industry sector, especially raining, due to having important mining activities in the north of the country. This paper aims to analyze the energy and electricity demand forecasting of mining industry and asses the related policy instruments to stimulate renewable energy in the mining sector. Key findings of the research are as follows: the expected total energy demand value for the mining sector is obtained as 405.12 PJ, which means the demand will almost double in 20 years. The main energy demand share in mining sector belongs to the copper sector with 78.9%. The forecasting results show that this share will increase gradually and reach 81.6% in 2035. The demand for electricity and diesel in the copper sector will double in 20 years and reach 171.38 PJ and 138.20 PJ, respectively. Electricity has the most significant share with 51.9% in copper energy demand between all fuels, and it is followed by diesel (41.8%), natural gas (3.6%), and oil (2.3%), accordingly. When energy policy instruments used in the world and Chile are compared to promote renewable energy, Chile has implemented some of them successfully, particularly renewable electricity production without fiscal incentives or FITs. However, Chile should also consider the following obligatory regulations in the mining industry: priority or guaranteed access to networks, priority dispatch, tax credits, production-based incentives and soft loans.