Chile Energy
Chile’s electrical energy sector is divided into three components: generation, transmission, and distribution. Each is operated entirely by private companies, both of local and international scale. In 2020, Chile announced its plan to achieve carbon neutrality by 2050, which has incentivized the development of numerous renewable energy projects. Many of these 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. In February of 2025, Chile experienced an unprecedented nationwide power outage allegedly caused by a third-party disregard for established protocol regarding a malfunctioning communication module, showing a potential vulnerability of Chile’s electrical system.
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. Following is an overview of the current installed capacity, energy projects in construction and the amount of energy each source is expected to produce. Data was obtained from energy associations and Chilean government websites.
According to Coordinador Eléctrico Nacional (CEN) Chile’s Independent System Operator, as of May 2025, Chile oversees a total installed power capacity of 37.4 giga watts (GW), with 11.9 GW coming from traditional energy sources and 25.5 GW coming from renewable energy sources.
Though traditional energy sources are being phased out, 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. 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.
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 alone, 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).
Given these constant demands for electricity from Chile’s main industries, the implementation of battery storage has been crucial. There are three approaches to energy storage available in Chile including Carnot Battery (thermal energy storage), battery energy storage systems (BESS), and liquid air energy storage (LAES). There is an approved Carnot Battery project being developed. There are four BESS projects under evaluation, 43 in the approval process, 19 approved, and 16 in construction. There is one approved LAES project underway. The estimated combined power capacity provided by approved projects and those in construction totals around 2.56 GW.
Geothermal installed power capacity has hovered around 95 MW since 2023 with only two projects in operation. Currently, there are no geothermal projects under any stage of development. This is largely due to high upfront costs and concerns over seismic activity. However, Chile has significant potential in geothermal energy production given its geographic position on the “Ring of Fire”, the horseshoe-shaped zone along the Pacific Ocean rim characterized by volcanic eruptions but also by frequent earthquakes.
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, it may play a large role in providing consistent energy to sectors such as mining that require constant and large amounts of electrical energy. This characteristic may make it critical in completing the energy transition.
Please contact The U.S. Commercial Service in Chile or office.santiago@trade.gov for assistance. If you are interested in seeking opportunities in Latin America’s Southern Cone energy market, you may consider joining the IMPACT Trade Mission in December 2025.