Chile 101
treatment of biomass or wood in the south of Chile. Not only monetary concerns are considered for the appositions of the eradication of this kind of source
of energy, but also all the traditional and cultural conceptions of wood in the
living standard of the region play a major role in the introduction of new clean
technologies.
The uncertainties identified above bring us to a subset of implementation
risk, that is the expansion of electricity access across Chile as a heating and
cooking option. Currently in Chile the coverage of electricity access is 99.6%.
The remaining ~0.4% is spread around the country. From this data we can
appreciate that the largest portion of the 0.4% without electricity connection is
concentrated in one of the poorest regions of the country, the Araucanía region.
Furthermore, trying to characterise this region, we can learn from Encuenta
Nacional de Energia (Ministerio de Energía de Chile, 2016) that the Araucanía
region uses 70% biomass- wood for heating and less than 5% electricity for this
propose.
One of the implementations risks in this context is related to the monetary
expected change for citizens. There is no official market for biomass- wood in
Chile and prices are lower than the estimated prices of electricity if this option
is considered as an option for heating. Also, it is important to consider the cost
of these alternatives in the building and operational phases, and to consider that
one of the natural constraints of the energy matrix in Chile is the dependency
on fuel imports (IEA, 2018).
Another risk is observed at the time of subjective considerations related to
renewable energy and energy poverty. According to an expert’s panel named
Red de Pobreza Energetica, more significant than the monetary dimension of
the consequential risk of energy poverty, they observed that energy poverty
could have three negative impacts in the lives of citizens through these dimensions (Urquiza et al., 2017).
The first impact observed is the socio- cultural dimension. According to the
discussion of this group reported in Amigo et al. (2018), the importance of absolute and relative energy necessities is differentiated by the diversity of regions of
Chile demanding this feature in the policy design.
The second impact is determined by the first one and is related to the quality
of energy access in regions. Factors like equipment, housing conditions, and the
intermittency of the service are part of this impact. In this regard, preliminary
observation of expert judgement of the group estimated that the impact would
be observed in the monetary budget of the household.
The third impact is with respect to accessibility and equity. The most significant challenge in this regard is the conditions of towns at the borders of the
country where energy sources are not available and where the provision distribution is costly. This third dimension is closely related with the consequential
risk analysed in the previous sections by quantitative methods.
treatment of biomass or wood in the south of Chile. Not only monetary concerns are considered for the appositions of the eradication of this kind of source
of energy, but also all the traditional and cultural conceptions of wood in the
living standard of the region play a major role in the introduction of new clean
technologies.
The uncertainties identified above bring us to a subset of implementation
risk, that is the expansion of electricity access across Chile as a heating and
cooking option. Currently in Chile the coverage of electricity access is 99.6%.
The remaining ~0.4% is spread around the country. From this data we can
appreciate that the largest portion of the 0.4% without electricity connection is
concentrated in one of the poorest regions of the country, the Araucanía region.
Furthermore, trying to characterise this region, we can learn from Encuenta
Nacional de Energia (Ministerio de Energía de Chile, 2016) that the Araucanía
region uses 70% biomass- wood for heating and less than 5% electricity for this
propose.
One of the implementations risks in this context is related to the monetary
expected change for citizens. There is no official market for biomass- wood in
Chile and prices are lower than the estimated prices of electricity if this option
is considered as an option for heating. Also, it is important to consider the cost
of these alternatives in the building and operational phases, and to consider that
one of the natural constraints of the energy matrix in Chile is the dependency
on fuel imports (IEA, 2018).
Another risk is observed at the time of subjective considerations related to
renewable energy and energy poverty. According to an expert’s panel named
Red de Pobreza Energetica, more significant than the monetary dimension of
the consequential risk of energy poverty, they observed that energy poverty
could have three negative impacts in the lives of citizens through these dimensions (Urquiza et al., 2017).
The first impact observed is the socio- cultural dimension. According to the
discussion of this group reported in Amigo et al. (2018), the importance of absolute and relative energy necessities is differentiated by the diversity of regions of
Chile demanding this feature in the policy design.
The second impact is determined by the first one and is related to the quality
of energy access in regions. Factors like equipment, housing conditions, and the
intermittency of the service are part of this impact. In this regard, preliminary
observation of expert judgement of the group estimated that the impact would
be observed in the monetary budget of the household.
The third impact is with respect to accessibility and equity. The most significant challenge in this regard is the conditions of towns at the borders of the
country where energy sources are not available and where the provision distribution is costly. This third dimension is closely related with the consequential
risk analysed in the previous sections by quantitative methods.