Chilean authorities enacted Decree N°1 of 2026 incorporating storage systems into distribution network regulations, which GIE acknowledged as progress. However, materializing connections for stand-alone BESS installations requires updating the Technical Standard for Connection and Operation, known as NTCO, to incorporate necessary procedures and technical requirements. Without these updates, projects cannot initiate or continue connection processes. Industry estimates place the affected project pipeline at approximately 500 MW across various development stages, representing investments near $450 million.
GIE proposed two complementary measures to address the implementation gap. The first involves SEC issuing a circular letter establishing transitional technical criteria, following mechanisms the authority has employed previously for interim guidance. Simultaneously, the association recommended pursuing a focused NTCO update as the permanent solution. Executive director Mauricio Utreras stated the new regulation represented an important step and emphasized the opportunity to complete implementation, noting the willingness of the Energy Ministry, SEC, and CNE to work through remaining definitions.
The timing coincided with Chile Day presentations in European financial centers where government officials promoted investment opportunities across multiple sectors. For the generator association, enabling distribution-connected battery projects would extend storage deployment benefits closer to end users and complement rapid growth of BESS installations connected to transmission infrastructure. Utreras highlighted that having $450 million in ready projects sends positive signals as Chile markets itself to international investors. The association expressed readiness to contribute technical expertise toward developing agile and secure solutions alongside regulatory authorities.
Distribution-level battery storage represents a newer application area compared to transmission-connected installations that have expanded rapidly in Chile’s power system. Completing the regulatory framework would allow developers to proceed with connection studies and construction schedules for projects spanning various Chilean distribution zones.
This article was curated and published as part of our South American energy market coverage.
