Chile’s power shift: lessons from a decade of power sector transformation

Our memo examines Chile’s power sector transformation over the past decade, showing that large-scale renewable energy deployment can exceed expectations when supported by a strong and predictable policy framework, effective procurement mechanisms and clear long-term decarbonisation signals.

However, Chile’s experience also demonstrates that if new renewable generation capacity is not matched with equivalent progress on grid expansion, transmission planning and storage development it can produce several imbalances such as grid congestion, high rates of renewable curtailment and inefficiencies in electricity generation and consumption.