Energy profile: Chile

From Global Energy Monitor

Overview

One of Latin America's energy transition leaders, Chile has rapidly ramped up solar and wind in recent years, while implementing an ambitious national decarbonization plan[1].

In 2020, more than half[2] of Chile's electricity came from fossil fuels. Four years later, renewables accounted for 70%[3], led by a doubling of wind and solar and a steep decline in coal. Chile boasts impressive RE credentials across the board, ranking second regionally[4] in prospective wind capacity and wind capacity under construction, and third regionally[5] in operating and prospective utility-scale solar, as well as operating wind.

Between 2020 and 2024, the share of fossil fuels in Chile's electricity mix dropped from 52% to 30%[2]. Chile retired 1.7 GW of coal[6], while adding 10 GW of new wind[7] and solar[8] capacity. In 2024, wind and solar electricity generation surpassed[9] fossil generation for the first time, reaching a monthly peak of 42%[3] in December. As of 2025, the vast majority of new power plants in development[10] are now wind and solar farms.

Many coal and fossil gas projects have been shelved, cancelled[11], retired[12] and/or converted to run on renewables[13] due to public opposition, legal action, corporate and government policy decisions, and the lower cost of wind and solar. New fossil-fueled power plants launched since 2021 have been limited to centrales de respaldo[14] — modular units that run on diesel engines and are intended primarily for backup generation.

Despite these successes, Chile's energy transition faces challenges. The country still has 1.7 GW of operating coal units[15] with no confirmed retirement date[16]. Insufficient transmission capacity and lack of adequate storage resulted in Chile wasting roughly 20%[17] of the wind and solar electricity it generated in 2024. Both transmission and storage are big priorities in meeting the national target of 80% renewable electricity[18] by 2030. Chile's Ley de la Transición Energética[19], enacted in December 2024, is designed to help streamline and expedite the development of new transmission infrastructure.

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Fuel mix (fossil fuels vs renewables)

In 2025, Chile generated 33.63% of its electricity from fossil fuels and 66.37% from non-fossil sources. The breakdown was as follows:[20]

  • 25.06% solar
  • 22.24% hydro
  • 17.76% coal
  • 15.30% gas
  • 13.09% wind
  • 5.68% bioenergy
  • 0.56% other fossil fuels
  • 0.30% geothermal

As of 2024, fossil fuels accounted for 32.77% of Chile's installed electrical capacity, with non-fossil energy sources making up the remaining 67.23%, as detailed below:[21]

  • 32.77% fossil fuels
  • 31.00% solar
  • 20.98% hydro
  • 13.51% wind
  • 1.50% bioenergy
  • 0.24% geothermal

Chile derives roughly two thirds of its total energy supply from fossil fuels, with oil, coal and natural gas all playing key roles; biofuels, together with smaller amounts of hydro, wind and solar, account for the remainder.[22][23]

In 2020, fossil fuels provided roughly half of Chile's installed electrical capacity and power generation; additional electricity was generated by hydro (26.5%), solar (9.8%, up from 8% in 2019), wind (7.1%, up from 6%) and other renewables including biomass and geothermal energy (roughly 5%).[22][24]

Energy planning targets

Chile's most important energy planning document is the Política Energética Nacional, whose most recent update calls for the country to achieve 80% renewable electricity by 2030 and 100% zero emissions electricity by 2050.[25] The plan sets several additional targets, including the implementation of 2 GW of energy storage by 2030 and 6 GW by 2050.[25]

Other key energy planning documents include:

  • PELP (Planificación Energética de Largo Plazo), which models future infrastructure requirements and energy scenarios over a five-year time frame (most recently updated for 2023-2027)[26]
  • Plan de Descarbonización Chile's national decarbonization plan, which defines the schedule for phasing out all coal-fired power plants by 2040.[27]

Greenhouse gas emissions targets

As of 2020, Chlle's per capita CO2 emissions from fuel combustion (4.1 tons annually) were the highest in Latin America and the Caribbean, though still relatively small by international standards, ranking only 37th globally.[28] Chile's NDC (Nationally Determined Contribution) target for 2030 called for a 30% reduction in GHG emissions.[29][30]

Chile’s updated NDC, submitted in September 2025, strengthened the country's economy-wide mitigation commitments while adding a number of concrete energy-transition measures. It committed to keeping total greenhouse-gas emissions below 1,100 MtCO₂e over 2020–2030, reaching an emissions peak by 2025, and limiting emissions to 95 MtCO₂e in 2030; for 2031–2035, it established a further emissions budget of 480 MtCO₂e and committed to no more than 90 MtCO₂e in 2035. The NDC also committed Chile to reduce energy intensity by 20% from 2019 levels by 2035 and to have at least 80% of electricity generation come from renewable sources by 2030. Importantly for the power sector, the document reaffirmed that Chile would eliminate coal-fired electricity generation by 2040, while emphasizing reduced fossil-fuel combustion in electricity generation and land transport. Supporting measures included expanded electrification of transport and mining, development of sustainable aviation fuels, greater use of green hydrogen and other low-carbon fuels, improvements to rail infrastructure and multimodal transport, and deployment of technologies and infrastructure associated with renewable generation and energy efficiency. The NDC also targeted a 25% reduction in black-carbon emissions by 2030 and 30% by 2035, reversal of the growth in national methane emissions, and reductions in HFC emissions. Overall, the NDC placed Chile on a trajectory toward its legally established goal of net-zero greenhouse-gas emissions by 2050, with renewable electricity, energy efficiency, electrification, and the phase-out of coal as central components.[31]

Government energy agencies & other key players

National energy agency

Chile's Ministerio de Energía is the government ministry responsible for developing and coordinating national energy policy, plans, and regulations.

Environmental assessment and permitting agencies

SEA (Servicio de Evaluación Ambiental) administers Chile's environmental impact assessment system (SEIA). New power generation projects must obtain a favorable Resolución de Calificación Ambiental (RCA) through the SEIA, by filing either an environmental impact declaration (DIA) or a full environmental impact study (EIA).

SMA (Superintendencia del Medio Ambiente) monitors and enforces compliance with environmental permits, and can sanction projects that breach their RCA conditions.

Regulatory agencies

CNE (Comisión Nacional de Energía) is the government's technical agency for the energy sector. It sets regulated tariffs, prepares technical standards, plans transmission expansion, monitors projects under construction, and advises the government on energy regulation and planning.

SEC (Superintendencia de Electricidad y Combustibles) supervises compliance with legal, technical, safety, and quality requirements across Chile's electricity, natural-gas, and liquid-fuel sectors, and enforces sector regulations.

Grid operator

Coordinador Eléctrico Nacional is the independent operator of Chile's national electricity system (SEN). It coordinates dispatch and manages the wholesale power market.

Electric utilities

Chile's electricity sector is almost entirely privately owned. Generation, transmission and distribution are carried out by private companies including Enel Chile, Colbún, ENGIE Energía Chile, and AES Andes.

National oil company

ENAP (Empresa Nacional del Petróleo) is Chile's state-owned oil company. It operates the country's oil refineries and produces oil and gas, mainly in the Magallanes region and abroad. It also has interests in geothermal energy.

Leading energy companies

Major private energy companies operating in Chile include Enel Chile, Colbún, Engie Energía Chile, AES Andes (formerly AES Gener) and CGE.

Coal in Chile

Coal-fired Power Plants in Chile

Chile has made significant progress in reducing its coal fleet in recent years, retiring 2.4 GW of capacity between 2019 and 2025 as part of its national decarbonization plan. Most recently, Chile took 709 MW of coal capacity offline in December 2025, with Engie retiring Mejillones power station Units 1 and 2 (334 MW) and commencing coal-to-gas conversion at its 375 MW IEM1 unit.[32] Thus, fourteen of the 28 coal-fired power units operating in Chile in 2019 have been shut down as of September 2026.

However, the outlook for Chile's remaining 3.1 GW (14 units) of operating coal power is less clear, and there has been some backsliding on coal phaseout commitments. Engie's Andina (177 MW) and Hornitos (178 MW) units were both scheduled for retirement in May 2026,[33] but in February 2026 the Chilean government rejected the company's proposed timeline for converting both units to run on fossil gas, effectively extending Andina-Hornitos' retirement or conversion deadline through May 2027.[34][35]

Chile's revised National Decarbonization Plan, released in October 2025,[27] shows twelve units with a potential retirement date as late as 2040, in contrast to the eight units listed in a 2024 draft version of the plan.[36] The eight units specifically identified in the 2024 draft were Guacolda Units 1–5 (760 MW), Cochrane Units 1 and 2 (550 MW), and Santa María Unit 1 (350 MW). The 2025 plan, unlike the 2024 draft, no longer specifies the exact units yet to be retired, but the extra four units with no fixed retirement date appear to be Ventanas Units 3 and 4 (544 MW) and Angamos Units 1 and 2 (558 MW).

Ventanas Units 3 and 4 were slated to retire in 2025, but new owner Quintero Energía, which purchased the Ventanas complex from AES Andes in December 2024, is now backtracking, saying that they will operate until shutdown becomes "technically viable."[37]

A proposal to convert Angamos Units 1 and 2 from coal to molten salt storage was unanimously approved by Chile's environmental authority (SEA) in November 2023,[38] but the plant continued to burn coal as of Q4 2025.[39][40] The plant's owners have not yet committed to a firm date for the molten salt storage conversion, suggesting that Angamos' coal-burning units could continue operating through 2026 or beyond.

In addition to uncertainties surrounding shutdown dates, challenges remain for the implementation of closure plans that include remediation and other decommissioning measures within the communities where the coal-fired facilities operated. To date, none of Chile's fourteen retired coal-fired units have submitted closure plans to the SEA, meaning that their infrastructure and the waste associated with their operation remain in local communities without proper management.

Among Chile's fourteen retired units, seven are older units — predating Law N° 19,300, which established a national framework for environmental protection — and thus not subject to an environmental assessment. Nevertheless, they must still comply with sector-specific regulations regarding the disposal and management of hazardous waste, as well as health standards, among others. To date, no information is available regarding their level of compliance. These units are ENGIE's Tocopilla Units 12, 13, 14, and 15; Quintero Energía's (formerly AES Andes) Ventanas Units 1 and 2, located in Puchuncaví; and Enel's Bocamina Unit 1, in Coronel.

The other seven retired units, which began operating after Law N° 19,300 took effect, did undergo environmental assessments and have been issued environmental qualification resolutions. Despite this, they have not implemented the commitments set forth in those resolutions regarding their closure and decommissioning processes, and there is no effective oversight by the environmental authority. These units are Enel's Patache (Tarapacá) Unit 1 in Iquique; AES Andes' Nueva Tocopilla (Norgener) Units 1 and 2, in Tocopilla; ENGIE's Mejillones Units 1, 2, and IEM, in Mejillones; and Enel's Bocamina Unit 2, in Coronel.

In this context, it is essential that environmental and sectoral authorities oversee compliance with the legal obligations of all thermoelectric plants regarding remediation and decommissioning — actions that are fundamental for advancement toward a just energy transition.

Domestic Production

Chile is not a major coal producer. Most domestic production comes from the southern region of Magallanes, home to the 2.3 million tpa Invierno Mine.[41]

Consumption

Chile was Latin America's third largest consumer of coal in 2019, after Brazil and Mexico. Consumption totaled 13.4 million tonnes in 2019.[42]

Coal consumption is expected to decrease as a result of Chile's national decarbonization plan, which calls for all of the nation's coal-fired power plants to shut down by 2040. At the time the plan was announced in 2019, roughly 40% of Chile’s electricity was supplied by 28 operating coal-fired units, which had a combined capacity of 5,541 megawatts (MW), mostly fueled by imported coal. The government’s original plan called for the shutdown of eight units totaling 1,069 MW by 2024, with the remainder to be decommissioned between 2025 and 2040.[43][44] The shutdown schedule has since been accelerated, with 18 units and 3,585 MW slated for decommissioning by 2025.[45][46] Enel has already retired its Patache (Tarapaca)[47] and Bocamina 1 units, and will decommission its lone remaining coal unit, Bocamina 2, in 2022.[48] Engie retired its Tocopilla units 12 and 13 in 2019[49], and will shut down units 14 and 15 in 2022, followed in 2024 by Mejillones units 1 and 2.[50] In 2025, Engie will convert its Mejillones IEM and Andina-Hornitos units to run on gas and biomass, respectively.[45][46] AES has committed to shutting down its Angamos units 1 and 2 and Ventanas units 2, 3 and 4 by 2025. Ten other coal-fired units with total generating capacity of 1956 MW are slated for shutdown between 2026 and 2040, including AES’s Norgener (Nueva Tocopilla) and Cochrane, Colbún’s Santa María and Capital Investments’ Guacolda units.

Chile is a founding member of the No New Coal Power Compact, launched in September 2021 by a coalition of seven governments that have agreed to cease permitting of new coal power plants and end new construction of unabated coal plants.[51] Chile is also a signatory to the Global Coal to Clean Power Transition Statement, announced at the COP 26 conference in Glasgow in November 2021.[52]

Imports & source countries

Chile has historically been Latin America's largest coal importer, with more than half of imports coming from Colombia.[53] Imports in 2019 totaled 10.4 million tonnes.[42]

Oil & Natural Gas in Chile

Domestic Production

Chile has large, undeveloped reserves of shale gas.[54] However, the country is not a significant producer of fossil fuels and must import most of its oil and natural gas. Chile produced only 22,000 barrels per day of petroleum products in 2020, and 1.2 billion cubic meters of natural gas in 2018.[55]

Consumption

In 2018 Chile consumed 363,000 barrels per day of petroleum products and 5.4 billion cubic meters of natural gas.[55]

Imports & source countries

Chile imported just over 2 billion tonnes of natural gas and nearly 11 billion tonnes of oil in 2019.[54] Chile imports natural gas by pipeline from neighboring Argentina, and by sea from several other countries, including Trinidad and Tobago, Algeria, Qatar, Equatorial Guinea, the United States, and Mexico.[56] The country's two main LNG import terminals are the Quintero LNG Terminal and the Mejillones LNG Terminal.[54]

Transport

Four international pipelines - the Atacama Pipeline, the Nor Andino Pipeline, the GasAndes Pipeline, and the Gasoducto del Pacífico - cross the Andes between Chile and Argentina, allowing Chile to import Argentine natural gas. However, supplies are intermittent, and Argentina's export capacity was completely shut down for more than a decade before flow resumed in 2018.[57][58][59]

Renewable Energy in Chile

In 2019, Chile announced its intention to achieve carbon neutrality by 2050. Between 2014 and 2020, the country steadily increased the renewables component of its energy mix from 3% to 25%[60], with solar and wind power combining to account for 23% of electricity generation by the end of 2020[61] and 23.5% in the first half of 2021.[62] Companies such as Enel and Engie have shifted their Chilean investments away from coal power to alternate sources such as solar and wind.[63][64] Chile has some of the highest levels of solar radiation on earth, making it a prime candidate for photovoltaic energy development[60], and the Magallanes region in southern Chile is being touted as a prime site for wind-powered green hydrogen projects.[65] Chile is also a leading producer of lithium, a key element in electric vehicle batteries; the country held an estimated 55.5% of global lithium reserves as of 2019.[66]

As of 2025, several massive projects supporting green hydrogen and/or green ammonia production had entered Chile's environmental approval pipeline.[67] The Chilean government has also been approving a growing number of projects incorporating BESS storage[68], especially in the northern regions of Antofagasta, Atacama and Tarapacá.[69]

Iron & Steel in Chile

Dating to 1950, Chile's CAP Acero steel plant is one of South America's largest and longest established steelmakers, based on the older and more energy-intensive blast furnace/basic oxygen furnace technology. The plant uses iron ore from mines in northern Chile, which are concentrated in the three northern regions of Atacama, Antofagasta, and Coquimbo.[70][71]

Environmental & social impacts of energy in Chile

Protest video: "Mr Aes Gener: Polluting Chile for more than 50 years with coal-fired power plants", Alianza Chao Carbón

Webinar Launching the Report "AES Gener, Dirty Energy", Chile Sustentable

Community groups in Chile have long opposed coal on health, safety, and environmental grounds. Residents of Chile's five so-called 'sacrifice zones' - the communities of Mejillones, Tocopilla, Quintero-Puchuncaví, Coronel, and Huasco, where coal-fired power plants and other polluting industries are heavily concentrated -- are vulnerable to a variety of associated health and safety impacts, including higher risk of respiratory disease and cancer.[72][73][74][75][76][77] Development of Chile's vast lithium reserves is already having negative impacts on the fragile Atacama desert ecosystems and indigenous communities of northern Chile, including severe depletion of local water resources.[78][79]

References

  1. ↑ Plan de Retiro y/o Reconversión de Centrales a Carbón, Ministerio de Energía de Chile.
  2. ↑ 2.0 2.1 Electricity Data Explorer: Chile, Ember.
  3. ↑ 3.0 3.1 Chile surpasses 40% wind and solar for the first time in December, Ember.
  4. ↑ Global Wind Power Tracker: Summary Tables, Global Energy Monitor.
  5. ↑ Global Solar Power Tracker: Summary Tables, Global Energy Monitor.
  6. ↑ Global Coal Plant Tracker, Global Energy Monitor.
  7. ↑ Global Wind Power Tracker, Global Energy Monitor.
  8. ↑ Global Solar Power Tracker, Global Energy Monitor.
  9. ↑ Generación eléctrica alcanza récord del 70% de generación renovable en 2024 en Chile, Energía Estratégica.
  10. ↑ Global Integrated Power Tracker, Global Energy Monitor.
  11. ↑ Los Rulos: autoridades regionales celebran decisión de la empresa de no ejecutar la termoeléctrica, BioBioChile, October 22, 2022.
  12. ↑ Corte Suprema pone fin definitivo a Mina Invierno, El Mostrador, June 9, 2022.
  13. ↑ Dueña de El Campesino busca nuevas opciones para cumplir con contratos, Revista Nueva Minería & Energía.
  14. ↑ Centrales térmicas, Potencia Chile.
  15. ↑ Avances de Descarbonización, Chile Sustentable, August 2023.
  16. ↑ Boom and Bust Coal 2025, Global Energy Monitor.
  17. ↑ Chile es el país que más energía renovable genera, pero desperdicia la gran mayoría, SWI swissinfo.ch.
  18. ↑ Chile impulsa baterías para estabilizar su sistema eléctrico y alcanzar la meta de 80% renovables en 2030, Energía Estratégica.
  19. ↑ Ley Transición Energética: promulgación y características, Gobierno de Chile.
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  32. ↑ Avanzamos en nuestra salida del carbón en Chile, desconectando dos unidades y reconvirtiendo una a gas natural en Mejillones, ENGIE Chile, January 2, 2026.
  33. ↑ ENGIE Energía Chile 6M 2025 Investor Presentation, ENGIE, August 2025.
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  35. ↑ Resolución Exenta Nº 86: Rechaza solicitud de exención de plazo asociada a la modificación relevante de la Unidad Ter Hornitos U1 y de la Unidad Ter Andina U1, y prorroga sus fechas de retiro y cese de operaciones, Comisión Nacional de Energía, February 18, 2026.
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  37. ↑ Balance Ambiental 2025, Fundación Terram, December 18, 2025.
  38. ↑ AES Andes obtains unanimous environmental approval for the coal-fired thermoelectric plant conversion project, AES Andes, November 29, 2023.
  39. ↑ 3Q 2025 Earnings Report, AES Andes, November 20, 2025.
  40. ↑ 4Q 2025 Earnings Report, AES Andes.
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  66. ↑ "2020 Statistical Review of World Energy" (PDF). BP. June 2020.{{cite web}}: CS1 maint: url-status (link)
  67. ↑ Hidrógeno verde: 75 proyectos y casi US$ 25 mil millones en el SEIA en medio de dudas por su despegue, Contempora, January 29, 2025.
  68. ↑ Huang, Ye (2026-03-15). "Energy storage signals shift to renewable grids". Global Energy Monitor. Retrieved 2026-09-02.{{cite web}}: CS1 maint: url-status (link)
  69. ↑ Ini, Luis (2026-07-28). "Chile forecasts up to 58 GW of new solar capacity by 2057". PV Magazine Global. Retrieved 2026-09-02.
  70. ↑ "Steel Dashboard". Global Energy Monitor. Retrieved 2021-04-12.{{cite web}}: CS1 maint: url-status (link)
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  74. ↑ "Estudio UC: habitantes de zonas con termoeléctricas se enferman 4 veces más". La Tercera. August 26, 2019.
  75. ↑ "La ironía de Mejillones y Tocopilla: zona alberga a nueva termoeléctrica en región con la mayor tasa de cáncer al pulmón del país". El Mostrador. August 29, 2019.{{cite web}}: CS1 maint: url-status (link)
  76. ↑ "La compleja transición energética de las "zonas de sacrificio" de Chile". Diálogo Chino. April 15, 2021.
  77. ↑ "In Chile's polluted 'sacrifice zones,' residents seek respite in new constitution". Reuters. December 22, 2020.
  78. ↑ "Chile: Experta alerta sobre riesgos de agotamiento del agua por extracción de litio en salar de Atacama en nuevo proyecto de Wealth Minerals". Centro de Información sobre Empresas y Derechos Humanos. June 4, 2019.{{cite web}}: CS1 maint: url-status (link)
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