By Luis Gutiérrez, scholar and researcher at the Center for Energy Transition (CENTRA) of the UAI School of Engineering and Sciences, and SERC Chile.

Every March 5, we celebrate World Energy Efficiency Day, an opportunity to reflect on the rational and efficient use of energy and the necessary transition toward energy systems with a high share of renewable energy, with an emphasis on non-conventional renewables (NCRE, primarily solar and wind). In this regard, Chile’s progress has been remarkable, moving from having virtually no such sources a decade ago to a current share of 44% in the national electricity generation mix, where generation from NCRE reached 43% in January 2024, setting a record of 94% renewable energy for one hour (including hydro).

This trend is promising; however, energy efficiency seems to receive less attention. This is somewhat surprising, considering that this measure—in addition to helping reduce pollutant emissions—can also generate significant savings for various types of consumers, including industrial, commercial, and residential users.

Since 2021, Chile has had an Energy Efficiency Law (Law 21305) aimed at coordinating efforts to achieve carbon neutrality by 2050, with 35% of greenhouse gas reductions expected to come from this measure. Furthermore, the law requires the Ministry to develop a National Energy Efficiency Plan every five years, addressing energy efficiency in residential and productive sectors, as well as education and training in energy efficiency.

With regard to large energy consumers, who account for approximately 40% of national energy consumption, the Law stipulates that those exceeding 50 TCal/year (designated as “Consumers with Energy Management Capacity” and listed by decree) must appoint an Energy Manager to lead the implementation of an energy management system and report their consumption annually for the Ministry to prepare a public report.

In the residential, commercial, and public-use building sector—which accounts for approximately one-quarter of national energy consumption—the law requires labeling that indicates the energy efficiency level of new buildings, similar to the labels we are familiar with for household appliances. The Ministry expects that, with this measure, new buildings will consume 30% less thermal energy by 2026 compared to 2021. Similarly, for the transportation sector—which accounts for one-third of national energy consumption—importers are required to provide this type of labeling on new vehicles, indicating their fuel efficiency in kilometers per liter.

By establishing minimum standards for manufacturers, the goal is to double the fuel efficiency of light-duty vehicles by 2035 compared to 2019. In addition, importers of these brands will be able to count up to three times the equivalent fuel efficiency of zero-emission vehicles toward meeting the target, a measure expected to promote electromobility.

Finally, Lord Kelvin’s famous quote, “What is not measured cannot be improved,” highlights the need to advance the adoption of smart meters—a key tool in the energy transition that allows us to monitor and manage our consumption and enables time-of-use and flexible rates, among other things—thereby promoting efficient energy use and better utilization of renewable energy.