As part of the Energy Route 2018–2022 developed by the Ministry of Energy, district heating has been identified as an opportunity to increase energy efficiency and the use of local and renewable resources. A specific action for the development of district heating is the establishment of a technical regulatory framework, for which this project will propose a work plan based on a regulatory analysis at the national and international levels.

General Context
The project aims to support the introduction of cogeneration technology in the country through district heating, as a significant contribution to Energy Efficiency. The activities to be developed fall within the project “Emission Reduction through the Application of Cogeneration in the Industrial and Commercial Sectors in Chile,” led by the Ministry of Energy, the Energy Sustainability Agency, and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

Objectives
The main objective of the project is to generate a regulatory analysis that identifies the necessary regulations for the development of district heating projects in Chile.

Methodology
First, an analysis of the regulations for cogeneration and district heating in various countries will be conducted: Canada, Colombia, Denmark, Sweden, Iceland, Germany, and the United Kingdom. Based on this regulatory analysis, a clear understanding of the levels of regulation regarding tariffs, business models used, service quality requirements, certifications, among others, will be obtained.

Next, an in-depth analysis of the national regulations will be conducted to determine, in conjunction with the international analysis, the relevance of applying or not applying the different regulations or business models identified. Finally, modifications to existing legal frameworks will be proposed, or the creation of new ones, to encourage the development of district heating projects in the short, medium, and long term. These modifications will be incorporated into a work plan that will serve as a guide for the subsequent work of the Ministry of Energy.

Project Counterparts
The project is supported by the Ministry of Energy, the Superintendency of Electricity and Fuels, and the Energy Sustainability Agency.

Work Team
EBP is developing the project in collaboration with other national and international consulting firms to provide a holistic view of the regulatory development. For this project, EBP is working with COWI (with experience in Denmark, Sweden, Iceland, the United Kingdom, and Germany), Hinicio (a Belgian consultancy with experience in Colombia and Canada), Gestiona Group (a Chilean consultancy with extensive experience in national regulation), and Kraftwert (a consultancy with experience in Chile and Germany).