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Chile has reached fresh milestones in its energy transition amid a rapid build-out of solar and battery storage infrastructure.
The context: The South American nation’s brisk shift to clean electricity was sparked by staunch community opposition to traditional power projects. That prompted regulators to introduce a carbon tax in 2017 — the region’s first — as well as emissions standards for coal-fired facilities.
Less than a decade later, Chile has cemented its position as a frontrunner in the global energy transition, and the country is phasing out coal faster than any other developing economy.
According to modelling by the International Energy Agency, Chile is on track to eliminate coal-fired power by 2030 and get to over 90% renewables on an annual basis by then.
The latest: In January 2025, coal made up less than 11% of Chile’s electrical output, a new monthly low, according to data collated by research group Ember. On the other hand, solar’s share of the mix reached a record monthly high of 29%.
In calendar year 2024, all renewables combined made up 70% of the mix as coal’s contribution slipped to 16% — that’s down from 42% as recently as 2013 — and gas’ share declined as well. Renewables in aggregate made up a record 82% of the mix in the month of November 2024.
Importantly, the switch from fossil fuels means emissions from Chile’s electricity sector have fallen 41% since peaking in 2013, per Ember data.
To keep up the momentum, policymakers enacted the Energy Transition Law in December 2024. The legislation includes measures aimed at speeding up investments in the power grid to free up capacity for additional renewable energy projects.
Ongoing investments in battery storage systems will also pave the way for new wind and solar plants.
In Chile’s north, Spanish company Grenergy Renovables is developing a massive 4.1 gigawatt hour (GWh) storage facility. And new data shows the country already has 954MW of operational energy storage capacity, meaning it’s half way to achieving the national target of 2GW by 2030.
“Chile is at the front of the global race to renewables and is determined to stay there,” says Ember analyst Wilmar Suarez. “The Energy Transition Law positions Chile to secure its continued leadership in the global energy transition and unlock clean, affordable energy for its citizens.”
