By Eduardo Schott, SERC Chile Researcher and academic at the UC Faculty of Chemistry and Pharmacy
Chile has established itself as a global benchmark in the transition toward clean energy. It has successfully leveraged unique natural resources, along with ambitious public policies and solid regulatory frameworks, to demonstrate that it is possible to grow economically while advancing toward sustainability. Its experience offers valuable lessons in a world urgently facing the climate crisis.
The Atacama Desert, with the highest solar radiation on the planet, has become a global laboratory for photovoltaic and solar thermal energy. The extensive coastline and Patagonian winds provide world-class wind potential, while volcanoes pave the way for geothermal energy and Andean rivers continue to sustain hydroelectricity. Thanks to this privileged geography, in 2023 Chile generated 9.4% of its primary energy from solar sources—the highest percentage in the world—and in 2024 renewables covered 70% of the power matrix, reaching a historic record of 42% from solar and wind in December.
None of this happens by chance. Since 2008, with Law 20.257, Chile set goals for non-conventional renewable energy, reinforced in 2013 with Law 20.698. The 2050 Energy Strategy established the roadmap toward 70% renewable electricity by 2030 and carbon neutrality by 2050, while the Green Hydrogen and Electromobility Strategies, published in recent years, opened new horizons. A turning point was the technology-neutral energy auctions implemented in 2015, which not only drove competition but also dispelled the myth that renewables are more expensive: in 2021, solar and wind reached prices of just 2.4 US cents per kWh.
Chile has also decisively addressed the challenge of intermittency. The 2022 Storage and Electromobility Law allowed for the addition of more than 900 MW in batteries and backup systems, an unprecedented capacity in the region. At the same time, green hydrogen is emerging as a major venture: the country aims to be a world leader by 2050, with 5 GW of electrolysis projected for 2025 and more than a dozen projects in development by 2026.
The effects of this transformation are felt in the economy and society. Between 2010 and 2021, the sector attracted more than $14.8 billion in investment, and in 2021 it accounted for half of the renewable investments in Latin America and the Caribbean. The IMF projects that replacing coal with clean energy could raise GDP by at least 1% in the long term. But beyond the figures, this process has meant jobs, infrastructure, and new opportunities for entire communities that today coexist with solar and wind farms.
However, pending tasks remain. Electricity transmission is the major bottleneck: the majority of resources are in the north and south, while demand is concentrated in the center, requiring multi-billion dollar investments in new lines. Added to this is the persistent dependence on fossil fuels, which still cover 30% of the matrix and necessitate accelerating the closure of coal-fired plants before 2040.
The Chilean experience demonstrates that clear policies, stable regulatory frameworks, technological innovation, and international cooperation are the components that sustain a successful energy transition. What seemed like a dream a few years ago is now a reality: Chile has succeeded in uniting economic growth, innovation, and sustainability, and in doing so, it has become a global model that reminds the rest of the planet that the future can be built with sun and wind.
