Overview 

Chile’s energy sector is divided into three components: generation, transmission, and distribution. Each is operated entirely by private companies, including local and international. In 2022, Chile announced its Framework Law on Climate Change, which aims to achieve carbon neutrality by 2050 by incentivizing the development of numerous renewable energy projects. Power generation companies have formally committed to retiring thermal power plants by 2040. As noted in the Economist Intelligence Unit (EIU) Energy Reports, among the top government programs outlined to support these goals is the promotion of energy storage, as current electricity production has outpaced grid capacity, leading to energy loss.

Many of the new projects are located in the less populous northern region, while energy consumption is concentrated in the central region, creating a high demand for reliable High-Voltage Direct Current transmission line projects. The north also holds Chile’s massive mining projects, which require significant and sustainable energy resources beyond traditional means. The energy matrix diversification effort and current system challenges render opportunities for U.S. companies looking to export associated technologies and services to the market.

Traditional Energy Sources

Though traditional energy sources are being phased out in Chile, the installed capacity of 11.9 GW is produced by coal (3.5 GW), petroleum (3.1 GW), and natural gas (5.3 GW). Chile is a net importer of petroleum and natural gas, with minimal domestic reserves, and is currently retiring coal power plants. Due to limited hydrocarbon resources, Chile is heavily reliant on imports and is vulnerable to fluctuations in international oil prices. As cited in the EIU Energy Reports, this had led Chile to have the highest energy prices in the Americas, making renewable sources especially competitive. Active projects in the traditional energy sector include natural gas exploration, development of lower emission extraction and refining technologies, and overall logistical improvements. Companies involved in these developments continue to emphasize their commitment to sustainability and low-emission technologies.

New Energy Technologies

According to a study published by the Chilean Association for Renewable Energy (ACERA), by the year 2030, the government aims to have 70 percent of energy consumption from renewable power sources, an increase from the current 41 percent, as cited by the Ministry of Energy. ACERA notes that between the years 2022 and 2025, 5.8 gigawatts (GW) of renewable energy were added to the total installed capacity, meeting projected energy goals. As cited in the EIU Energy Reports, in December of 2024, the Chilean government passed the Energy Transition Law to accelerate the decarbonization of the energy sector by streamlining energy transmission projects with the goal of fewer delays in the integration of new power plants. Additionally, Chilean Law 20.571 promotes power generation by residential owners with installed capacity of up to 100 kilowatts (KW). As of December 2024, Chile’s Independent System Operator (Coordinador Eléctrico Nacional or CEN), reports an installed power capacity of 36,778 megawatts (MW), a 7.2 percent increase from the previous year. Of this total, 8,459 MW were solar (up 23 percent from 2023), and 5,149 MW were wind (up approximately 7 percent from 2023). In November 2024, the average marginal cost of energy at the Quillota 220 kilovolt node in the Northern Grid was $33 per megawatt hour (MWh).

Solar energy is Chile’s largest growing source of renewable energy given the country’s vast solar resources. In 2024 alone, solar power plants in Chile delivered 18.6 giga watts hours (GWh) of energy. Chile is developing two types of solar technology: solar photovoltaic (PV) panels and solar thermal energy. There are 44 solar PV projects under evaluation, 86 in the approval process, 318 approved, and 212 in construction. Chile has one solar thermal energy project that has been approved. The estimated combined total power capacity of approved projects and those under construction is approximately 20.5 GW.

Wind power is Chile’s second most developed source of renewable energy. In 2024, wind power plants delivered 11.1 GWh of energy. Currently, there are five wind projects under evaluation, 26 in the approval process, 33 approved, and 13 in construction. The estimated combined total power capacity of approved projects and those under construction is approximately 13.53 GW.

Hydropower is also a notable source of renewable energy in Chile, although less popular than wind and solar power given prolonged drought and general concerns with water management. There are six hydro projects under evaluation, two approved, and nine in construction. The estimated combined total power capacity by approved projects and those under construction is approximately 121.46 megawatts (MW).

Chile also has several long- and short-term Green Hydrogen goals. One long-term goal is to become a top world exporter of hydrogen by the year 2040. In the short term, six hydrogen projects with a cumulative electrolyser capacity of 396 MW are in construction and are projected to be fully functional by 2025.

Advanced Nuclear

Nuclear power has yet to be developed or considered in Chile’s electricity matrix. Chile’s energy plan for 2050 does not include nuclear energy as a short-term option for energy production, highlighting the need for further research before it is included in official policy. However, nuclear power may play a role in providing reliable energy to sectors such as mining, which requires consistent and large amounts of electrical energy. This characteristic may make advanced nuclear power critical in fulfilling Chile’s energy transition aspirations. According to Chilean Nuclear Energy Commission, there are no regulatory barriers to nuclear installation. However, its development requires that future changes to the nuclear legal framework ensure that national regulatory authorities are effectively independent in their safety-related decision making and that they have functional separation from entities that have responsibilities or interests that could unduly influence their decision-making. Demand for nuclear power is expected to increase in energy-intensive sectors, such as mining. Although Chile is not committed to a nuclear energy program, the country has 2 nuclear reactors. However, the reactors are only used for medicinal purposes and research, neither are used to produce electricity.

Conclusion

The U.S. supplies, on average, over 8 percent of parts and equipment to Chile’s energy sector. The following table portrays the sector by looking at a sample set of electrical equipment harmonized codes.

Table: Sample Market Size for Chile Electrical Equipment (US$ Millions)

Units: US$ million, 2025 estimate based on first six months of 2025

Source: Global Trade Atlas (HTS 7413, 7414, 8406, 8410, 8411, 841912, 8501, 8502, 8503, 8504, 8506, 8507, 8532-37, 8541-44, 8546-48, 8574)

Leading sectors include:

• Transmission line monitoring equipment
• Grid security and monitoring technologies and services
• Battery storage systems
• HV-AC & HV-DC transmission line cables and converter stations
• Wind turbines
• Photo voltaic panels and inverters
• Electrolysis plants, equipment, and parts
• Hydrogen storage and transportation equipment
• Carbon footprint reduction services and technology
• Coal power plant decommissioning services
• Smart grid technology and services
• Personal safety equipment

Opportunities

The energy matrix diversification effort and current system challenges render opportunities for U.S. companies looking to export associated technologies and services to the market. According to PV Magazine LATAM, six energy projects focused on solar and battery storage have been submitted to Chile’s Environmental Impact Assessment Service (SEIA) for approval. These projects represent a total investment of $879.16 million and would add 155.34 MW of solar capacity and over 1 GW of battery storage (BESS) to Chile’s installed capacity, as listed in New Energy Events.

Trade Shows

• EXPOENERGÍA, Santiago: A local trade show featuring technological solutions for the supply, efficiency, quality, and safety of energy in the local industry.

• EXPONOR, June 8-11, 2026, Antofagasta: Chile’s second largest mining trade show also features an energy pavilion. The show takes place every two years. The U.S Pavilion expects over 30 exhibitors.

• RE+ Cono Sur, March 25-26, 2026, Santiago: Renewable energy and electromobility trade show.

Resources

• Ministry of Energy    
                                                                                                                                                                                     
• National Energy Commission), a technical organization, under the Ministry of Energy, responsible for analyzing prices, tariffs, and technical norms with which energy production, generation, transport, and distribution companies must comply, to ensure sufficient, safe-, quality-service, compatible with most economic operations. 
   
• Superintendencia de Electricidad y Combustibles (Fuel and Electricity Superintendent, SEC): (https://www.facebook.com/SuperintendenciaSEC/), an office of the Ministry of Energy, responsible for monitoring the proper operation of the electricity, gas, and fuel services. It supervises compliance with laws, regulations, and technical norms in the electricity, liquid fuels, and gas fields, to ensure the quality and safety of the services rendered.
   
• Chilean Association for Renewable Energies, a 140-member association including developers, generators and suppliers of products and services, national and foreign, throughout the value chain of the Renewable Energy industry.  
                     
• Chilean Association of Solar Energy, a Trade Association that brings together companies interested in promoting the development of solar energy.
   
• Chilean Association of Power Generation companies, an industry association that represents the electricity generation companies operating in Chile. It is made up of companies that develop, build, and operate energy projects in all the technologies present in Chile.
   
• Chilean Association of Energy Transmission, an industry association that promotes the rationalization, development, and protection of the common activity of its partners, the electricity transmission industry.
   
• Coordinador Eléctrico Nacional (National Electric Coordinator or CEN), Chile’s Independent System Operator (ISO), a technical and independent body responsible for the reliable, secure, and efficient operation of the national electric system.

For more information about the energy sector contact U.S. Commercial Service Industry Specialist: Marcelo Orellana