Chile has experienced a strong increase in participation in non-conventional renewable energies (NCRE) in the last two decades. NCRE reached a penetration of close to 40% in 2022, mainly associated with solar (24%) and wind (13%) plants. However, the country's decarbonization goals demonstrate the intention to promote NCRE further. For example, there is a plan for the early shutdown of coal-fired thermoelectric plants, which focused on some plants between 2019 and 2026 (19% of the installed capacity) and the closure of the remaining plants by 2040 without a specific schedule. On the other hand, the Ministry of Energy has proposed that if the country does not reach a minimum of 70% renewable energy by 2050 with high solar and wind energy participation, price mechanisms, corrective bidding, and regulations must be applied. In this context, the present study uses an intersectoral model that allows to define exogenously the changes in the production of the solar, wind, and thermoelectric sectors, and also the investment required in solar and wind plants to replace the generation of coal-fired thermoelectric plants completely. The results obtained from the model and complementary information allow us to identify the economic impacts of this climate policy in Chile.
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