Decarbonisation Programme
Five lines of work to unlock the planning, regulatory and market bottlenecks that are holding back the decarbonisation of the Chilean power sector.
What the programme seeks
Chile has a legal commitment to carbon neutrality by 2050, with coal generation phased out by 2040. The country moved fast to install solar and wind, but the next stage of decarbonisation no longer depends on adding more renewable capacity: it depends on solving five bottlenecks in planning, regulation and markets.
The programme tackles those five bottlenecks over twelve months. Each line of work has an institutional counterpart and a product that counterpart can use, so that results feed into planning updates, regulatory reforms and investment decisions.
Why it matters
If those bottlenecks are not addressed, the likely outcome is more curtailment of renewable energy that cannot be used, more dependence on imported fossil fuels, rising system costs and a regressive impact on vulnerable consumers.
Affordability runs through the whole programme: the transition must lower, not raise, the electricity bills of vulnerable households.
Two pillars
Scaling renewables: flexibility, grids and storage
What needs to change in planning, financing and operating rules so that the power system can absorb much more renewable energy. Lines 1, 2 and 3.
Accelerating electrification of the real economy
Where fossil fuels are still burned in industry and homes, and what it takes for that consumption to switch to electricity without raising the bills of those least able to pay. Lines 4 and 5.
Lines of work
Distributed generation as a planning decision
Making flexibility assets bankable
Dispatch and pricing rules for battery storage
Storage to replace diesel at the industrial peak
Electrifying with demand flexibility and affordable tariffs
Programme leadership
Programme milestones
- 2026Kick-off meetings with the National Energy Commission and the National Electricity Coordinator (lines 1 and 3)
- 2026-2027Workshop with the financial sector on the bankability of flexibility (line 2)
- 2027Public closing seminars for all five lines and technical briefs for lines 1 and 3
News and activities
Programme news and activities will be published here.