IDEAS home Printed from
   My bibliography  Save this article

Analysis of a solar and aerothermal plant combined with a conventional system in an ESCO model in Chile


  • Bustos, F.
  • Lazo, C.
  • Contreras, J.
  • Fuentes, A.


The work provides technical and economic feasibility studies for solar thermal and aerothermal energy systems for the production of sanitary hot water in large volumes in Chile. The proposed project is based in an Energy Service Company model. Using a particular consumption profile, a sensitivity model has been developed in order to design the aero-solar-thermal system, and to obtain financial indicators. The indicators were applied for both, the company that evaluates the business opportunity, and to their future customers. Also, the model includes an analysis of the reduction of greenhouse emissions and its impact on the project׳s financial performance. A dynamic sensitivity analysis was carried out in order to obtain a probability distribution for the financial results and its risk. Case analysis considered 16 solar collectors, a heat pump of 32kW for the use of aerothermal energy and a conventional boiler. The set-up allows to obtain an annual solar coverage of 14%. Meanwhile, aerothermal coverage was around 70% and the contribution of the conventional system was 16%. The participation of each subsystem was motivated by a purely financial decision as a result of the sensitivity analysis of the model. On the one hand, a Net Present Value of 35,600 USD and an Internal Rate of Return of 21% were reached for the client. On the other hand, the Energy Service Company obtained a Net Present Value of 9200 USD and an Internal Rate of Return of 69%. Concerning risk, results indicate that for the customer, there exists a 88% probability to obtain a positive Net Present Value, and for the company this probability is about 70%, obtaining generally positive results. However, sensitivity analysis indicates that there exists high elasticity in some relevant variables such as fuel prices and operational costs which could increase considerably risk to the project.

Suggested Citation

  • Bustos, F. & Lazo, C. & Contreras, J. & Fuentes, A., 2016. "Analysis of a solar and aerothermal plant combined with a conventional system in an ESCO model in Chile," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1156-1167.
  • Handle: RePEc:eee:rensus:v:60:y:2016:i:c:p:1156-1167
    DOI: 10.1016/j.rser.2016.02.004

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Kalogirou, Soteris, 2003. "The potential of solar industrial process heat applications," Applied Energy, Elsevier, vol. 76(4), pages 337-361, December.
    2. Okay, Nesrin & Akman, Ugur, 2010. "Analysis of ESCO activities using country indicators," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 2760-2771, December.
    3. Deng, Qianli & Jiang, Xianglin & Zhang, Limao & Cui, Qingbin, 2015. "Making optimal investment decisions for energy service companies under uncertainty: A case study," Energy, Elsevier, vol. 88(C), pages 234-243.
    4. Karagiorgas, M. & Botzios, A. & Tsoutsos, T., 2001. "Industrial solar thermal applications in Greece: Economic evaluation, quality requirements and case studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 5(2), pages 157-173, June.
    5. Stuart, Elizabeth & Larsen, Peter H. & Goldman, Charles A. & Gilligan, Donald, 2014. "A method to estimate the size and remaining market potential of the U.S. ESCO (energy service company) industry," Energy, Elsevier, vol. 77(C), pages 362-371.
    6. Bannai, Masaaki & Tomita, Yasushi & Ishida, Yasushi & Miyazaki, Takahiko & Akisawa, Atsushi & Kashiwagi, Takao, 2007. "Risk hedging against the fuel price fluctuation in energy service business," Energy, Elsevier, vol. 32(11), pages 2051-2060.
    7. Vine, Edward, 2005. "An international survey of the energy service company (ESCO) industry," Energy Policy, Elsevier, vol. 33(5), pages 691-704, March.
    8. Ortega, Alberto & Escobar, Rodrigo & Colle, Sergio & de Abreu, Samuel Luna, 2010. "The state of solar energy resource assessment in Chile," Renewable Energy, Elsevier, vol. 35(11), pages 2514-2524.
    9. Borge-Diez, David & Colmenar-Santos, Antonio & Pérez-Molina, Clara & López-Rey, África, 2015. "Geothermal source heat pumps under energy services companies finance scheme to increase energy efficiency and production in stockbreeding facilities," Energy, Elsevier, vol. 88(C), pages 821-836.
    10. Atkins, Martin J. & Walmsley, Michael R.W. & Morrison, Andrew S., 2010. "Integration of solar thermal for improved energy efficiency in low-temperature-pinch industrial processes," Energy, Elsevier, vol. 35(5), pages 1867-1873.
    11. Vine, Edward L. & Murakoshi, Chiharu & Nakagami, Hidetoshi, 1998. "International ESCO business opportunities and challenges: a Japanese case study," Energy, Elsevier, vol. 23(6), pages 439-447.
    12. Dincer, Ibrahim, 2000. "Renewable energy and sustainable development: a crucial review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 4(2), pages 157-175, June.
    13. Goldman, Charles A. & Hopper, Nicole C. & Osborn, Julie G., 2005. "Review of US ESCO industry market trends: an empirical analysis of project data," Energy Policy, Elsevier, vol. 33(3), pages 387-405, February.
    14. Gastli, Adel & Charabi, Yassine, 2011. "Solar water heating initiative in Oman energy saving and carbon credits," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(4), pages 1851-1856, May.
    15. El-Sebaii, A.A. & Al-Hazmi, F.S. & Al-Ghamdi, A.A. & Yaghmour, S.J., 2010. "Global, direct and diffuse solar radiation on horizontal and tilted surfaces in Jeddah, Saudi Arabia," Applied Energy, Elsevier, vol. 87(2), pages 568-576, February.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:60:y:2016:i:c:p:1156-1167. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.