Overview

Chile has set a goal of reaching carbon neutrality by 2050 and power generation companies have formally committed to retiring thermal power plants by 2040. Among the priority government programs to support this goal is the promotion of energy storage and the Green Hydrogen Initiative that would make Chile a top global exporter of hydrogen by the year 2050. The Chilean government has set 2030 as the target for 70 percent of the country’s energy consumption to come from renewable power sources. According to a study published by the Chilean Association for Renewable Energy (ACERA), this number is currently at 33 percent. Between the years 2022 and 2025, over 5,000 megawatts (MW) of renewable power per year should be installed. Chilean Law 20.571 promotes power generation by residential owners with installed capacity of up to 100 kilowatts (KW)

Chile’s electricity sector, including generation, transmission, and distribution, is privately owned and operated by foreign and local companies. AES Andes, a fully owned subsidiary of AES Corp., is the second largest power producer.

As of December 2021, the Coordinador Electrico Nacional (CEN), Chile’s independent systems operator, reports an installed power capacity of 30,862 MW, a 14.8 percent increase from the previous year. Of this total, 6,198 MW were solar, a 42.3 percent increase from 2020, and 3,536 MW were wind, a 29.3 percent increase from the previous year. During December 2021, the average marginal cost of energy at the Quillota 220 kilovolt node in the Northern Grid was approximately $90 megawatt per hour.

The U.S. supplies, on average, over 7 percent of parts and equipment to the sector. The Made in USA brand enjoys a reputation for quality and service. However, given the number of trade agreements and the market openness, foreign competition is strong, particularly from Asian suppliers.

Units: US$ million

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 Sub-Sectors

Wind Turbines

• PV panels and inverters
• Battery storage systems
• HV-AC & HV-DC transmission line cables and converter stations
• Transmission line monitoring equipment
• Electrolysis plants, equipment, and parts
• Hydrogen storage and transportation equipment
• Carbon footprint reduction services and technology
• Coal Power plant decommissioning technologies and services
• Smart Grid technology and services
• Grid security and monitoring technologies and services
• Personal Safety Equipment

Opportunities

According to the Hydrogen Association, there are six Green Hydrogen projects at different stages of development with a total combined investment of over $130 million. For the period 2022-25, CEN estimates that investment in transmission development projects will total $3 billion. In 2021, according to the Chilean Association for Renewable Energies, 2,000 MW of solar and 2,260 MW of wind utility scale power projects were submitted in the environmental evaluation permitting process for a total of $13 billion of planned future investment.

Trade Events

• EXPOENERGÍA, November 9, 2002, Santiago, Chile: A Chilean trade show featuring technological solutions for the supply, efficiency, quality, and safety of energy
• EXPONOR, 2024 Dates TBD, Antofagasta, Chile: Chile’s second largest mining trade show also features an energy pavilion. The U.S Pavilion features over 50 exhibitors.

Resources

• Ministry of Energy

• Comisión Nacional de Energía (National Energy Commission, CNE): A technical organization under the Ministry of Energy, CNE is responsible for analyzing prices, tariffs, and technical norms with which energy production, generation, transport, and distribution companies must comply, to ensure sufficient, safe, and quality service.

• Coordinador Eléctrico Nacional, (National Electric Coordinator, CEN): CEN is Chile’s Independent System Operator (ISO) that is responsible for the reliable, secure, and efficient operation of the national electric system.

• Superintendencia de Electricidad y Combustibles (Fuel and Electricity Superintendent, SEC): An office of the Ministry of Energy responsible for monitoring the proper operation of the electricity, gas, and fuel services. The superintendent supervises compliance with the laws, regulations, and technical norms in the electricity, liquid fuels, and gas fields, to ensure the quality and safety of the services rendered.

• Asociación Chilena de Energías Renovables y Almacenamiento (Chilean Association for Renewable Energies, ACERA): A 140-member association including developers, generators, and suppliers of products and services throughout the value chain of the renewable energy industry.

• Asociación de Concentración Solar de Potencia (Chilean Association of Concentrated Solar Power, ACSP): A trade association that brings together companies interested in promoting the development of solar energy.

• Generadoras de Chile (Chilean Association of Power Generation Companies): An industry association that represents the power generator companies operating in Chile and includes a broad and diverse group of companies that develop, build, and operate energy projects.

For additional information, please contact U.S. Commercial Service Chile Commercial Specialist Marcelo Orellana.