4

Disculpa, pero esta entrada está disponible sólo en English.

Energy

Chile has achieved significant advances in its shift toward a cleaner and more decentralised electricity supply. As of 2025, nearly 47 % of generation in the Sistema Eléctrico Nacional (SEN) comes from non-conventional renewable energy (solar, wind, biomass, etc.), and recent monthly data report that renewables have supplied over 50 % of electricity demand every day.

Moreover, the country continues to rank among the top global destinations for clean-energy investment: Bloomberg New Energy Finance (BNEF)’s Climatescope 2022 again placed Chile among the leading emerging markets for renewable energy, confirming its attractiveness for solar, wind and clean-tech capital.

The rapid expansion of renewables reflects Chile’s almost unlimited solar and wind potential, growing expertise, and stable regulatory framework — positioning the country as a regional leader for sustainable energy transition.

In 2025, Chile is entering a phase where the strategic challenge is no longer how to install more renewable capacity — but how to integrate, store and transmit that clean energy efficiently across the country, ensuring system reliability and supporting green-industry growth such as hydrogen, battery storage and energy-intensive exports.

Overview

Since the privatisation of the Chilean electricity sector in 1980, all generation, transmission and distribution activities have been in private hands.

Generation

Until recently Chile’s generation matrix was dominated by large scale hydro electric dams, coal fired power plants, combined cycle gas plants and smaller diesel peak lopping plants. All of the fossil fuel burnt had to be imported, making Chile vulnerable to price fluctuations and supply risks.

More recently Chile has started to capitalise on its own significant renewable energy sources. Chile is estimated to have the potential energy sources from 1,800 GW solar, 37 GW wind, 14,6 GW hydro, 2 GW geothermal, and 2 GW biomass. To put this in perspective, the total installed generation capacity in July 2021 was approximately 28.4 GW.(Comisión Nacional de Energía – CNE)

Transmission

Chile’s high-voltage transmission backbone is managed by the Coordinador Eléctrico Nacional (CEN), and is structured around the Sistema Eléctrico Nacional (SEN), which since 2017 integrates the former SIC and SING systems. It spans the stretch from Arica in the north — through central Chile — down to Chiloé in the south, covering roughly 3,100 km of territory and providing electricity to over 97 % of the population. In addition to SEN, two smaller isolated regional grids continue operating in the far south: the Sistema de Aysén (SEA) and the Sistema de Magallanes (SEM), which serve the Aysén and Magallanes regions respectively.

Distribution

Electricity supply in Chile continues to be managed through regional distribution companies, which secure supply contracts for their regulated clients via competitive auctions conducted by Comisión Nacional de Energía (CNE).

With the progressive incorporation of non-conventional renewables, the auction held in 2021 awarded 2,310 GWh/yr at a record-low price of US$23.78 per MWh, reflecting some of the most cost-effective bids globally at the time.

However, subsequent auctions reflect increased volatility: the 2022/01 auction saw awarded energy at around US$37 per MWh, illustrating a market readjustment as the system balances supply adequacy, renewable integration and transmission constraints.

As of 2025, Chile’s electricity mix continues to shift decisively toward renewables — solar, wind, hydro and storage — increasing supply flexibility and enhancing sustainability, although prices now reflect broader system-wide factors including grid management and variable demand.

Supervision

The Superintendent of Electricity and Fuels (SEC) acts on behalf of the Energy Ministry to promote the industry and ensure safe quality services to the public. It supervises compliance with the laws and regulations relating to electricity and fuels.

The operation of the transmission system is controlled by the National Energy Commission (CNE), which is a decentralised public institution created in 1978. Its role is to ensure a safe and sufficient energy supply compatible with the most economic operation. It sets prices and tariffs, schedules grid inputs and defines the technical norms under which the generating and distribution companies within the system must comply.

Green Hydrogen

Worthy of specific mention is the current focus on the emerging opportunity to convert Chile’s rich renewable energy resources into green hydrogen, for many the fuel of the future for all mobile applications. It will also give Chile autonomy from imported fossil fuels, and with potential to export.

The government introduced its National Green Hydrogen Strategy on 3 November 2020, with an ambitious agenda: to develop 5 gigawatts (GW) of electrolysis capacity by 2025, achieve the world’s lowest-cost green hydrogen production by 2030, and establish Chile among the top three exporters globally by 2040.

In 2023–2024, the government advanced a new Green Hydrogen Action Plan 2023–2030 to operationalise the strategy — defining concrete milestones, strengthening regulation, and aligning hydrogen deployment with the country’s decarbonisation goals under the long-term energy planning framework.

Today (2025), Chile is rapidly scaling up its hydrogen ecosystem. The objective remains to realise a competitive, export-ready hydrogen industry. Analysts project that the country could reach a production capacity of up to 1.6 million tonnes per year and become a low-cost global supplier by 2040.

To accelerate development, public and private stakeholders are deploying large-scale projects across the supply chain — including electrolysis, renewable power generation (solar and wind), green ammonia and synthetic fuels production, and export logistics. The industry roadmap emphasises competitiveness, sustainability, and regulatory clarity, positioning green hydrogen as a key pillar in Chile’s transition toward a clean-energy economy by 2050.