August 11,2025

 

Chile seems to be advancing with determination along the path of the energy transition, with the firm intention of transforming its electricity matrix into one that is 100% renewable.

The generation figures to date confirm that this path is being followed. According to statistics from Generadoras de Chile, the evolution of renewable energies since 2013 has been constant, and their share in the energy matrix is increasingly evident—so much so that this year, for the first time, clean energies (solar + wind) reached the same levels as thermal generation, with 36% in the first half of 2025.

For Camilo Charme, executive director of the trade association, “the success of the energy transition rests on the security of the system. Today we have a system operating with high levels of variable renewable generation, but we need to talk more seriously about reliability: operational security, supply security, and quality of service (…) variable renewables have no rotors, they don’t generate inertia. We are retiring machines that provided essential services without yet having clarity on how we will replace them.”

He adds that, in the context of the energy transition, there are structural and urgent aspects that have not been sufficiently addressed but are decisive for the real and sustainable success of the transition. “Some of these are reliability in the electrical system, which becomes more relevant with the high penetration of variable renewables; the cost of the energy transition, both in economic and social aspects; the need for effective implementation of regulatory reforms; the role of conventional plants, whose decommissioning must be managed with security criteria; and the sector’s institutional framework, which must be strengthened to face the challenges of the new system,” explains the Generadoras de Chile representative.

Regarding supply security, Carlos Silva, academic and researcher at the Energy Transition Center (Centra) of Universidad Adolfo Ibáñez (UAI), states that “it is based on the coordinated operation of a large number of technical and human resources. These resources can be grouped into two main sectors: the distribution sector, under the operational responsibility of distribution concessionaires, and the generation-transmission sector, whose coordination is under the National Electric Coordinator (CEN).”

For his part, Daniel Salazar, managing partner of the consultancy energiE, points out that “we are advancing in a process of transforming the matrix, in which risks and vulnerabilities will be added, some of which became evident in the February 25 blackout. This will continue to pose a threat, and it is difficult to project when it can be mitigated.”

THE AFTERMATH OF THE BLACKOUT

The nationwide blackout that left Chileans without electricity for more than seven hours on February 25 cost the country around US$450 million, directly impacting residential and industrial customers across the National Electric System (SEN), according to estimates by the Electric Customers Association (Acenor A.G.).

Although initial investigations, just hours after the incident, determined that the cause of the blackout was the unplanned disconnection of a double-circuit 500 kV transmission line, the impact and damage caused by the event, according to Daniel Salazar, were too severe: “It is the CEN’s responsibility to study why it happened and what mitigation measures should be adopted. Probably the worst grade or rating of the entire episode goes to the design and execution of the recovery plan (…) for any country, leaving the government palace in darkness for many hours is beyond explanation or justification.”

As of August 4, the Superintendence of Electricity and Fuels (SEC) had filed charges against the CEN’s Board of Directors after its investigations revealed that the body had been operating the system unsafely—specifically by maintaining power transfers at 1,800 MW, exceeding the validity range of 1,600 MW established for the Nueva Maitencillo–Nueva Pan de Azúcar and Nueva Pan de Azúcar–Polpaico corridor.

Carlos Silva adds that, although service interruptions can have substantial consequences for various areas of society, it is important to highlight the guidelines defined by the Ministry of Energy in its Energy Policy 2050 regarding the goal of reducing “the sum of interruptions for final customers from more than a dozen hours annually to just a few hours in the medium term, and to one hour by 2050,” aiming to improve the quality and continuity of electricity supply.

REDEFINING ROLES AND RESPONSIBILITIES

Experts consulted agree on the urgent need to redefine and assess the design and roles of the institutions involved in the management, control, supervision, and coordination of the SEN.

“We have a fragmented institutional framework designed for an electricity system of the past. Today, multiple actors share responsibilities without adequate coordination. It is urgent to redefine roles and competencies,” says the Generadoras de Chile representative.

Daniel Salazar emphasizes the CEN’s role: “Given the damage caused to public trust, it is important that the Coordinator inform what concrete measures are being implemented to prevent future incidents of this magnitude (…) that information gap must be filled soon,” adding that “the industry expects the responsibilities of all actors involved in the February blackout to be established.”

It is public knowledge that the SEC is currently investigating to determine the responsibilities for the February 25 blackout. In this regard, Javier Bustos, executive director of Acenor A.G., adds that, given the ongoing investigation, “it is not possible to comment on the potential responsibilities of each market player, such as the Coordinator.”

However, he adds, “in any case, this episode should serve to draw lessons and make the regulatory and institutional changes necessary to provide the reliable and efficient supply we need as a country.”

DECARBONIZATION BY 2035

During his most recent State of the Nation address, President Gabriel Boric announced the submission of a bill to accelerate decarbonization and bring forward the closure of coal-fired power plants to 2035.

In Daniel Salazar’s opinion, this is a very difficult goal to achieve. “In this industry, 2035 is only 10 years away, which is a ‘short term’ in which to expect structural changes that make such ambition viable. Therefore, I interpret it as an aspiration or expression of desire, nothing more. But regardless of the feasible year, we should not be paralyzed and must move forward—with focus and prioritization—on the Ministry of Energy’s Decarbonization Plan, as this is by far the best roadmap available today.”

On this subject, but focusing on customers, Bustos believes that before setting a date to decarbonize the electricity matrix, it is necessary to define the best path or trajectory for customers in that process.

“This is not about making a rapid transition that puts customers’ supply at risk or makes the provision of a key input in the country’s economic competitiveness even more expensive. Customers have long been pushing for more renewable generation in their supply contracts (…) but if the supply becomes insecure and expensive, it will be very difficult to move forward in decarbonizing other fossil fuel consumption in transportation or industrial processes,” stresses Javier Bustos.

FOCUSING ON PRIORITIES

Finally, Salazar warns that the imbalances and distortions that have built up—resulting in cross-subsidies—must be corrected urgently, calling on current and future authorities to intervene and act.

“In addition, work must be done on three essential aspects: restoring trust and credibility in the supply tender processes so that PPAs (Power Purchase Agreements) or regulated energy purchase agreements once again become the engine of investment, as they were until a few years ago; organizing the planning and pricing processes in a timely and proper manner; and clearing up the uncertainty generated by the idea of renegotiating regulated PPAs,” concludes the managing partner of energiE.