The Chilean electricity sector continues to confront significant curtailment of renewable energy. Through July 2026, non-conventional renewable energy curtailment reached 2,680 GWh, the highest level since records began in 2016. The curtailed energy represents approximately 10 days of total national system generation. Despite lower curtailment figures during winter months when solar radiation decreases, the accumulated losses highlight persistent mismatches between renewable supply, transmission capacity, and demand patterns. The majority of curtailment stems from oversupply conditions rather than transmission constraints, according to analysis by consulting firm Systep.
Battery energy storage systems are beginning to mitigate curtailment levels. As of September 2026, Chile had 11,231 MW of BESS capacity across 138 projects in operation, testing, or construction stages, representing a 160% increase from September 2025. Between January and July 2026, storage systems injected approximately 2,400 GWh into the grid, nearly matching the total curtailment figure for the same period. Industry association Generadoras projects that renewable curtailment in December 2026 could fall 77% compared to December 2025 as additional storage enters service.
The electricity sector’s evolution reflects broader energy transition dynamics in Chile. Public interest in distributed solar generation has intensified, with more than 12,000 Chileans enrolling in a free online solar panel installation course. Demand came from across the country, with 55% of registrations from the central zone and 27% from the south, indicating that residential solar interest extends beyond the high-radiation northern regions. The mobility sector is also electrifying rapidly, with sales of zero and low-emission vehicles reaching 34,818 units between January and July 2026, up 95.4% year-on-year.
This article was curated and published as part of our South American energy market coverage.
