How did Chile become the regional leader in energy transition?

In 2018, the government implemented the Energy Route 2018-2022 with the objective of achieving the carbon neutrality. To achieve this, they focused on modernizing the regulation and policy of the energy sector, promoting the use of unconventional renewable energies, promoting innovative technologies based on clean energy, improving transport efficiency and the quality of life of citizens.

To achieve these objectives, several policy instruments were established, including:

1. The update of the distributed generation law, allowing users to generate up to 300kW of energy to self-supply and, if there are surpluses, to inject them into the electricity grid.
2. The revision and updating of the Nationally Determined Contribution (NDC) to strengthen the country's commitment to the fight against climate change.
3. The development of an electromobility strategy to promote the use of electric vehicles and reduce emissions associated with transport.

Source: iadb.org | Own development

Essential pillars of the Chilean government to achieve the energy transition

Source: Ministry of Energy in Chile

Quality and Reliable Energy Supply Goals

2050:

• The unavailability of the national average electricity supply does not exceed 1 hour per year, and the frequency of national average unavailability events is at most twice a year, with less dispersion at the municipal level compared to 2021.
• Indicator: Hours and frequency of power cuts at national and community levels.

2030:

• Energy regulation, planning and regulation, including electricity and fuels, explicitly incorporate resilience and adaptation to climate change. Tools such as the analysis of scenarios and risk indices in the face of climate threats are used and technological and digital solutions are introduced to reduce the replacement times of energy services in emergencies.
• Indicator: Number of regulatory and planning instruments that incorporate resilience and adaptation to climate change.

2040:

• The country has the highest standards of reliability and resilience in the energy system (electricity and in the fuel sector), being a model for integrating renewable energy for other countries.
• Indicator: Performance in resilience and reliability of energy systems at regional and community levels.
• Indicator: Investment in transmission compared to the expected investment according to expansion plans.

2050:

• At least 6,000 MW of energy storage systems are reached in the National Electricity System (at least 2,000 MW by 2030), such as batteries, hydraulic pumping, compressed air, liquid air, and other technologies.
• Indicator: Percentage of storage over the total installed capacity in the National Electricity System.
• 100% of the country's municipalities and regions have implemented plans to reduce risks and emergencies in the energy sector.
• Indicator: Percentage of regions and communes with plans to reduce risks and emergencies in the energy sector.

Goals of the Electrical System for the Empowerment of People

2050:

• Energy users express high satisfaction with the perceived quality of service, covering aspects of the supply, the product and the business relationship. The degree of satisfaction will be measured through an annual survey prepared by the Ministry of Energy, used as a basis for the development of related public policies.
• Indicator: Percentage of improvement in the level of user satisfaction compared to the results of the previous year.

2040:

• The complete digitalization of the electricity grid is achieved, allowing users of the system to access services that allow them to recognize, compare and choose different treatment schedules, variability of charges, forms of payment and types of generation (renewable, local, among others). To do this, the system must have complete operating and consumption information in real time.
• Indicator: Percentage of digitalization of the electricity grid. It will be necessary to establish a definition of digitalization and a metric to monitor its progress.

Participatory Public Policy Goals

2030:

• 100% of the policies, regulations, plans, programs and instruments in the energy sector are designed, implemented, monitored or evaluated considering participatory, adequate and inclusive processes, with the participation of various actors, including representatives of the public, private, academic, scientific, indigenous peoples, civil society, and others, as appropriate. It seeks to promote the involvement of more people and communities in these processes.
• Indicator: Percentage of policies, standards, plans, programs and instruments in the energy sector that incorporate appropriate and inclusive participatory processes and have a variety of actors.

2025:

• Indigenous peoples have been integrated into the design of policies, plans and programs that may directly affect them, adopting an intercultural approach that considers the territorial, political and cultural dimensions of indigenous peoples.

2030:

• Spaces for permanent dialogue have been established with an intercultural approach, with the objective of ensuring that the energy transition generates positive impacts on the sustainability of the territories where indigenous peoples reside.
• Indicator: Satisfaction index (by metric to be defined) of people in relation to the existence and effectiveness of established dialogue spaces.

Goals for Balanced Insertion in the Territories

2030:

• All energy planning instruments incorporate a territorial approach to promote compatible and balanced development in different territories.
• Indicator: Percentage of energy planning instruments that include a territorial approach in the definition of their objectives, vision and/or strategic guidelines.

2030 (coordination):

• The different planning, development and territorial planning instruments related to energy are developed in a coordinated and articulated manner with strategic and planning instruments from other sectors, both at the local and national levels.
• Indicator: Percentage of strategic instruments from other sectors and territorial, local and national planning instruments that are articulated with the strategic-territorial guidelines of the energy sector.

Information Targets for the Energy Transition

2030:

• All legislative, regulatory, programmatic and political initiatives related to the energy field will have available and transparent information on their benefits, costs, alternatives, expected results, compliance indicators and impact on people's well-being. With this information, the impacts of each initiative will be analyzed.
• Indicator: Percentage of initiatives (regulations, plans, programs and public policies) with public information on their benefits, costs, expected results and indicators of compliance and impact on people's well-being. It will be necessary to design national impact indicators on the quality of the allocation and efficient use of public resources.

2030 (information systems):

• Public institutions in the energy sector will have information systems that allow the provision of their data in a traceable, orderly and inclusive manner, and will have implemented initiatives for the permanent dissemination of information systems and feedback channels for users. It will be encouraged that private institutions also implement these information systems.
• Indicator: Percentage of institutions that open their databases in a traceable and orderly manner, and provide facilities for access to information. Criteria will be established to positively qualify an institution based on this indicator, considering the particularity of each one.