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Latin America

Chile

With a power score of 2.5, Chile ranks number 7 among Emerging Markets and number 2 in the Latin America region

Power score

2.5/5

12345

Score over time

2021 - 2024

5
2021
4
2022
3
2023
7
2024

Overview

Chile has a power score of 2.50, which puts it at rank 7 in the Emerging Markets power ranking. In comparison to 2023, Chile has dropped in the power rankings by 4 places, from rank 3, to rank 7.

At 2.50, the power score of Chile is better than than the regional average of 1.93 in the Latin America region and puts it at rank 2 in the region.

Regional comparison chart

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Chile

Power

Power policy

Chile implements policies in 7/9 power policy categories tracked by Climatescope, including Renewable energy target, Renewable energy auction, Net metering, Import tax incentives, VAT incentives, Renewables mandate, and Renewable Energy Certificates.

Power policies

Renewable energy target
Renewable energy auction
Feed-in tariff
Net metering
Import tax incentives
VAT incentives
Priority grid access
Renewables mandate
Renewable Energy Certificates

Power prices and costs

The average electricity price in Chile has increased from 127.65 USD/MWh in 2022 to 168.08 USD/MWh in 2023. Since 2017, the average electricity price in Chile has fluctuated between 127.65 USD/MWh (2022) and 193.71 USD/MWh (2021).

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Power market

The top amount of capacity installed in Chile in 2023 was in Utility-scale PV at 27.86%, up from 23.35% in 2022.

Installed capacity (in MW)

20002005201020152020010K20K30K40K MW

Electricity generation (in GWh)

20002005201020152020020K40K60K80K GWh

The top amount of electricity generated in Chile in 2023 was in PV at 19.9%, up from 17.04% in 2022. The technology with the biggest increase in electricity generated in 2023 was Large Hydro at 16.14%, up from 10.96% in 2022.

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Investment in clean energy in Chile was around $2,677.31 million in 2023, an increase of 16.29% from 2022 ($2,302.36 million). Between 2018 and 2023, the highest investment in clean energy was in 2019 at $5,022.81 million, while the lowest was in 2018 with $1,494.43 million.

Utility privatisation

Which segments of the power sector are open to private participation?

generation: Yes
transmission: Yes
retail: Yes

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

No

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Yes

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

No

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

No

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