Pulp & Paper Case Study

Pulp Mill, Arauco, Chile


For a pulp mill in Arauco, Chile, electricity consumption accounts for the highest production costs and is directly related to greenhouse gas emissions. Thus, industries are looking at demand side energy management to be more efficient and competitive.

Solar energy has long been touted to become a major source of clean and secure energy in Chile. Considering major hydroelectric and natural gas exchange projects have been shelved recently, Chilean industries can look at renewable integration to meet their power.


In this pulp and paper case study, a solar PV system integrated with a Battery Energy Storage System allows for solar power generation at highest efficiency and also for power capacity expansion of the system. The system can be grid tied or could be used to island operations as a part of demand side management.

Cost Saving Benefits

The cost of system considered here is US$290,000. The local electricity rate is US$0.15/kWh. The average annual solar generation in Santiago is 1928 kWh/kW. The yearly consumption saving would be US$28,916. With a demand reduction of US$4,000, the total saving would be US$32,916.

Initial CostAnnual UsageAnnual Savings
US$290,000250 kWhUS$32,916

About The System

The system comprises of a 250 kWh BESS charged by a 100kW solar PV array and the grid. This setup will be able to support power demands of some mill operations during peak periods using the energy stored. Since the BESS is charged during off-peak period with either solar PV or the grid, significant amount of bill savings can be made in the pulp and paper industry as well as other industries.


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