A techno-economic analysis of net-zero transition in Chile's building sector

Xia Wang, Wei Feng, Virginie Letschert, Nina Khanna, Jing Ke, Nan Zhou and Kairui You

Energy, 2025, vol. 334, issue C

Abstract: Chile is undergoing an energy transition to achieve net-zero carbon emissions and improve its local air quality. To develop a national roadmap and achieve net-zero targets in the building sector, it is important to analyze potential scenarios for building decarbonization in Chilean socioeconomic contexts. Therefore, this study extends a national Low Emissions Analysis Platform (LEAP) model for Chile and simulates an accelerated net-zero scenario (NZS) to evaluate additional technical opportunities in the building sector. Results demonstrate that with its power sector's continuous decarbonization, Chile's building sector can achieve net-zero emissions with 100 % electrification of space heating, water heating, and cooking, and with energy efficiency improvements. Compared to the business-as-usual (BAU) scenario, the accelerated NZS can reduce a cumulative 466.3 million tons of CO2 emissions from 2020 to 2050. The techno-economic analysis finds that the accelerated NZS will require an additional investment of 54.4 billion USD from 2020 to 2050, compared to the BAU scenario. However, this investment will result in energy savings of 80.9 billion USD, with a net present value (NPV) of 26.5 billion USD. Meanwhile, the average cost of abated CO2 emissions is 116.8 USD/t CO2.

Keywords: Chile; Building sector; Accelerated net-zero transition; Electrification; Techno-economic analysis; Bottom-up modeling (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:334:y:2025:i:c:s0360544225031536

DOI: 10.1016/j.energy.2025.137511

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