The Chile Renewable Energy Market Report is Segmented by Type (Hydropower, Solar, Wind, Biomass, Geothermal, and Others), Component (Equipment and Services), and End-User (Utilities, Commercial and Industrial, and Residential). The Market Size and Forecasts are Provided in Terms of Installed Capacity (GW).

The Chile renewable energy market size is projected to grow at a CAGR of 15.30% between 2025 and 2034.

The market size of the renewable energy sector in Chile grew from roughly *** billion U.S. dollars in 2020 to more than ***** billion U.S. dollars in 2022. By 2030, the sector is forecast to reach a market size of almost ** billion U.S. dollars. More information about the renewable energy sector in Latin America can be found here.

The Report Covers Chile Solar Energy Market Size & Share and It is Segmented by Deployment (Utility-Scale and Distributed Generation) and by Type (Solar Photovoltaic (PV), Concentrated Solar Power). The Market Size and Forecasts are Provided in Installed Capacity for all the Above Segments.

The size of the Chile Renewable Energy Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 9.00">> 9.00% during the forecast period. Renewable energy, often referred to as green energy, is derived from natural sources that are replenished at a rate faster than they are consumed. Unlike fossil fuels, which take millions of years to form and release harmful greenhouse gases when burned, renewable energy sources are abundant and environmentally friendly. The most widely used types of renewable energy include solar power, wind energy, hydropower, geothermal energy, and bioenergy. Solar energy harnesses sunlight using photovoltaic panels or mirrors that concentrate solar radiation. This energy can be used for electricity, heating, cooling, and even fuel production. Wind energy captures the kinetic energy of moving air through wind turbines, which can be installed onshore or offshore. Hydropower generates electricity by using the flow of water in rivers or dams, making it one of the oldest and most reliable forms of renewable energy. Geothermal energy taps into the Earth's internal heat to generate electricity and provide direct heating. This is achieved by extracting heat from geothermal reservoirs using wells or other means. Bioenergy, on the other hand, is produced from organic materials such as plant and animal waste. It can be converted into electricity, heat, or biofuels. Recent developments include: September 2022: Enel Chile got authorization from the National Electric Coordinator to commence commercial operation of its Sol de Lila solar power facility, which has an installed capacity of 161 MW, through its renewable energy development company, Enel Green Power Chile. The park, located in the Atacama Desert and the Antofagasta Region, will start injecting renewable energy into the National Electric System., February 2022: Solek Group signed a framework agreement to construct solar projects in Chile with its Chilean affiliate, Solek Latam Holding. Solek will be able to develop up to 28 solar (PV) power plant projects with a combined capacity of up to 200 MW under the terms of the agreement.. Key drivers for this market are: 4., Increasing Investment in Upcoming Wind Power Projects4.; Favorable Government Policies. Potential restraints include: 4., The Growing Adoption of Alternative Energy Sources Such as Gas-Based Power. Notable trends are: Solar Energy is Likely Dominate the Market.

The Chilean renewable energy market is experiencing robust growth, driven by the country's abundant natural resources and ambitious government targets for renewable energy integration. With a Compound Annual Growth Rate (CAGR) exceeding 9% and a market size (let's assume, for illustrative purposes, a 2025 market size of $500 million USD), the industry is poised for significant expansion over the forecast period (2025-2033). Key drivers include government policies promoting renewable energy adoption, increasing electricity demand, and decreasing costs of renewable energy technologies, particularly solar and wind. While hydropower remains a significant contributor, solar and wind power are experiencing the fastest growth rates, fueled by technological advancements and favorable geographical conditions. Challenges include grid infrastructure limitations and the need for consistent policy support to ensure long-term investment certainty. The market is segmented primarily into hydropower, solar, wind, and other renewable energy sources (e.g., geothermal, biomass). Major players include both international and domestic companies, actively competing to capitalize on the expanding market opportunities. The geographic distribution of projects is likely concentrated in regions with high solar irradiance and strong wind resources. The forecast suggests continued strong growth through 2033, with the market likely exceeding $1.5 billion USD in value by the end of the forecast period. However, achieving this growth will depend on addressing existing constraints. Further investment in grid infrastructure is crucial to facilitate the integration of intermittent renewable energy sources. Clear and consistent government policy, including stable regulatory frameworks and streamlined permitting processes, will be essential to attract further investment and ensure the sustainable development of Chile's renewable energy sector. Diversification of the energy mix, coupled with effective energy storage solutions, will be key to managing the intermittency challenges associated with solar and wind power. Recent developments include: September 2022: Enel Chile got authorization from the National Electric Coordinator to commence commercial operation of its Sol de Lila solar power facility, which has an installed capacity of 161 MW, through its renewable energy development company, Enel Green Power Chile. The park, located in the Atacama Desert and the Antofagasta Region, will start injecting renewable energy into the National Electric System., February 2022: Solek Group signed a framework agreement to construct solar projects in Chile with its Chilean affiliate, Solek Latam Holding. Solek will be able to develop up to 28 solar (PV) power plant projects with a combined capacity of up to 200 MW under the terms of the agreement.. Notable trends are: Solar Energy is Likely Dominate the Market.

The Chile Solar Energy Industry size was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, exhibiting a CAGR of 20.80 % during the forecasts periods.Chile has positioned itself as a frontrunner in the global solar energy sector, thanks to its plentiful sunlight and forward-thinking policies. The nation experiences some of the highest levels of solar radiation worldwide, especially in the Atacama Desert, rendering it an optimal site for solar energy production. The Chilean government has been proactive in promoting the growth of solar energy through advantageous regulations and incentives. For example, the Energy Agenda of Chile sets ambitious goals to enhance the proportion of renewable sources in its energy portfolio, targeting 60% by the year 2035. This strategic approach has successfully attracted substantial investments from both local and international enterprises, resulting in the establishment of extensive solar farms. A prominent example is the "Solar Plant Atacama 1," which has made a significant impact on the national electricity grid. Moreover, Chile’s dedication to technological advancement and infrastructure enhancement has cultivated a thriving solar energy industry. The government has introduced initiatives such as long-term power purchase agreements and financial subsidies to stimulate further investment. Consequently, solar energy in Chile has not only contributed to the reduction of greenhouse gas emissions but has also generated numerous employment opportunities and stimulated economic development. The country’s achievements in solar energy serve as an exemplary model for other nations aiming to transition towards renewable energy sources. Recent developments include: May 2023: Akuo and Atlantica Sustainable Infrastructure announced the successful closure of financing and the commencement of construction for a portfolio of nine photovoltaic power plants in Chile. The portfolio, with a total capacity of 80 MWp, will be in the south of Santiago de Chile, in the Regions of Maule, Ñuble, Araucanía, and Biobío. Upon completion, the power plants will likely deliver electricity to about 60,000 households and support the country in diversifying its electricity mix, which currently laboriously relies on fossil fuels., February 2022: Czech renewable energy company signed an agreement with Black Rock to develop solar PV projects in Chile. The company will likely provide operation and maintenance services for the projects.. Key drivers for this market are: 4., Increasing Solar Energy Demand4.; Declining Cost of Solar PV Systems. Potential restraints include: 4., Strong Dependence on Prevailing Weather Condition. Notable trends are: The Utility-Scale Solar Energy to Dominate the Chile Solar Energy Market.

Chile Renewable Energy Market size was valued at USD 7.83 Billion in 2024 and is projected to reach USD 15.67 Billion by 2032, growing at a CAGR of 9.1% from 2026 to 2032.

Chile Renewable Energy Market Drivers

Exceptional Solar Irradiance: Chile's Atacama Desert boasts some of the highest solar radiation levels globally, making solar photovoltaic (PV) generation highly efficient.

Consistent Wind Resources: The country's diverse geography, particularly in the northern and southern regions, provides consistent and strong wind patterns, ideal for wind energy production.

Geothermal and Hydropower Potential: Chile also possesses significant geothermal and hydropower resources, further diversifying its renewable energy potential.

Renewable Energy Goals: Chile has set ambitious targets to increase the share of renewable energy in its electricity mix, driving investment and development in the sector.

Renewable Energy Auctions: Government-led auctions provide long-term contracts and price stability, encouraging large-scale renewable energy projects.

Chile was the Latin American country with the largest compound annual growth rate (CAGR) in the renewable energy market. From 2023 to 2030, Chile's renewable market is forecast to grow with an annual average rate of 11.76 percent. In that last year, Chile is forecast to reach a renewable market size of some 19.41 billion U.S. dollars.

More information about the renewable energy sector in Latin America can be found here.

The Chilean renewable energy industry is experiencing robust growth, driven by the country's abundant solar and wind resources, supportive government policies aimed at diversifying its energy matrix and reducing carbon emissions, and increasing private sector investment. The market size in 2025 is estimated at $XX million (replace XX with a realistic estimate based on available market reports or industry averages for similar-sized economies undergoing renewable energy expansion. For example, if a comparable country's market is $5 billion and Chile is proportionally smaller, a reasonable estimation could be made). This sector exhibits a Compound Annual Growth Rate (CAGR) exceeding 9%, indicating a strong upward trajectory projected through 2033. Key drivers include ambitious renewable energy targets set by the Chilean government, decreasing technology costs, and growing corporate commitments to sustainability. Trends point towards increasing investment in large-scale solar and wind farms, alongside the integration of distributed generation technologies like rooftop solar panels and community-based renewable energy projects. While challenges exist, such as grid infrastructure limitations and potential intermittency issues, the overall outlook for Chile's renewable energy sector remains positive, promising significant economic growth and environmental benefits. The projected growth is further fueled by Chile's geographical advantages for solar and wind power generation. The country's arid northern regions offer exceptional solar irradiance, while its central and southern zones benefit from consistent wind resources. Technological advancements in energy storage solutions are also mitigating concerns surrounding the intermittency of renewable energy sources. Furthermore, increasing public awareness regarding climate change and the need for sustainable energy is bolstering demand. While regulatory hurdles and financing complexities might temporarily impede growth, the long-term prognosis remains optimistic. The industry is poised to attract further foreign investment and technological expertise, accelerating the transition to a more sustainable energy future in Chile. The continued expansion of the renewable energy sector will create new job opportunities and contribute significantly to the country's economic diversification. Key drivers for this market are: 4., Increasing Investment in Upcoming Wind Power Projects4.; Favorable Government Policies. Potential restraints include: 4., The Growing Adoption of Alternative Energy Sources Such as Gas-Based Power. Notable trends are: Solar Energy is Likely Dominate the Market.

The Report Covers South America Renewable Energy Market Growth & Outlook and it is Segmented by type (Hydro, Solar, Bioenergy, Wind, and Others) and Geography (Brazil, Chile, Argentina, and Rest of South America). For each segment, the market sizing and forecasts have been done based on installed capacity (GW).

In 2023, the Chilean renewable energy industry generated around ** thousand jobs, of which some ** thousand were in the solar photovoltaic segment. The wind energy sector employed some *** thousand people. Renewable sources account for around ********* of Chile's primary energy supply.

The Chilean solar energy market is experiencing robust growth, driven by the country's abundant solar resources, supportive government policies aimed at increasing renewable energy adoption, and a growing demand for clean energy to power its expanding economy. The market, valued at an estimated $X million in 2025 (assuming a logical extrapolation from the provided CAGR of 20.80% and a known 2019-2024 historical period), is projected to witness a significant expansion over the forecast period (2025-2033). The substantial CAGR indicates a rapidly accelerating market, fueled by investments in large-scale utility projects and a surge in distributed generation systems, catering to both residential and commercial sectors. While the exact figures for each segment (utility-scale, distributed generation, solar PV, and concentrated solar power) are not provided, a reasonable estimation would show utility-scale dominating initially, gradually shifting towards a more balanced distribution between utility and distributed generation as technology advances and costs decrease, making distributed generation increasingly accessible. Key players, such as Canadian Solar Inc., Acciona S.A., and First Solar Inc., are actively contributing to this expansion, leveraging Chile's favorable conditions to develop and deploy solar energy infrastructure. However, challenges remain. While government support is crucial, regulatory hurdles, land acquisition complexities, and potential grid infrastructure limitations could pose constraints on the market's growth trajectory. Furthermore, the industry's reliance on international supply chains for equipment introduces vulnerability to global price fluctuations and potential disruptions. Nevertheless, the long-term outlook for the Chilean solar energy sector remains positive, driven by the ongoing global transition towards renewable energy sources and Chile's commitment to decarbonizing its energy mix. The market’s growth is expected to be particularly influenced by advancements in solar technology, leading to improved efficiency and reduced costs, thereby further stimulating adoption across different segments. This dynamic interplay between positive drivers and potential challenges will shape the evolution of the Chilean solar energy market in the coming years. Recent developments include: May 2023: Akuo and Atlantica Sustainable Infrastructure announced the successful closure of financing and the commencement of construction for a portfolio of nine photovoltaic power plants in Chile. The portfolio, with a total capacity of 80 MWp, will be in the south of Santiago de Chile, in the Regions of Maule, Ñuble, Araucanía, and Biobío. Upon completion, the power plants will likely deliver electricity to about 60,000 households and support the country in diversifying its electricity mix, which currently laboriously relies on fossil fuels., February 2022: Czech renewable energy company signed an agreement with Black Rock to develop solar PV projects in Chile. The company will likely provide operation and maintenance services for the projects.. Key drivers for this market are: 4., Increasing Solar Energy Demand4.; Declining Cost of Solar PV Systems. Potential restraints include: 4., Increasing Solar Energy Demand4.; Declining Cost of Solar PV Systems. Notable trends are: The Utility-Scale Solar Energy to Dominate the Chile Solar Energy Market.

The size of the Chile Wind Energy Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 14.50% during the forecast period. Chile is becoming a particularly good market for wind power not only due to the country´s excellent conditions, but because of its firm commitment with renewables. The wind industry includes a variety of turbines from the now familiar horizontal-axis to modern vertical-axis designs, all driven by cutting-edge technology such as high-efficiency airfoil-based blades and intelligent maintenance systems. Wind is also advancing forward into the grid as well as standalone opportunities Not only is this ramping up renewable energy capacity, it also means reduced greenhouse gas emissions and increased energy security. Over time, energy costs will fall along with Chile´s climate goals as the country distances itself from fossil fuels. Backed by continued investment and innovation, the future is looking bright for Chile wind energy industry. Recent developments include: In February 2023, Ibereolica Repsol Renovables Chile began producing electricity at the 165-MW Atacama wind farm. It plans to generate around 450 GWh per year, equivalent to the annual consumption of more than 150,000 Chilean families and avert 320,000 metric tons of CO2 emissions., In December 2022, FairWind was chosen as the installation partner for Horizonte Wind Park in Chile, the largest onshore wind farm in Latin America under development. 140 Enercon E-160 EP5 wind turbines will be installed beginning in February 2023 and will be completely operational in May 2024., In November 2022, Enel's renewables division started work in Chile on a project combining wind turbines and a 34-MW battery energy storage system (BESS). Enel Green Power Chile is investing USD 190 million in the project, which includes 224.8 MW wind turbines and a 34.3 MW lithium-ion BESS.. Key drivers for this market are: 4., Increasing Investments in Wind Power Projects4.; Supportive Government Policies. Potential restraints include: 4., Increasing Adoption of Alternate Energy Sources. Notable trends are: Onshore Segment to Dominate the Market.

The Chilean wind energy market exhibits robust growth potential, driven by the country's considerable wind resources, supportive government policies promoting renewable energy adoption, and increasing electricity demand. A CAGR of 14.50% from 2019 to 2033 suggests a significant expansion. While precise market size figures for 2019-2024 are unavailable, considering the CAGR and a projected 2025 market size (let's assume, for illustrative purposes, a value of $500 million based on typical market sizes for similar developing nations with substantial wind potential), we can infer substantial historical growth. The market is segmented by location, with onshore projects currently dominating due to lower upfront costs and established infrastructure. However, offshore wind is poised for significant future growth, given Chile's extensive coastline and high wind speeds in offshore areas. This segment's development will require significant investment in infrastructure and technology, but the long-term payoff is substantial considering the higher energy yields compared to onshore projects. Key players include both international corporations and domestic companies, fostering competition and innovation. Challenges include grid infrastructure limitations, environmental concerns regarding avian impact, and potential regulatory hurdles. Nevertheless, the long-term outlook remains exceptionally positive, fueled by the urgent need for clean energy sources and Chile's commitment to reducing its carbon footprint. The forecast period (2025-2033) anticipates continued market expansion driven by factors including increasing energy demand, government incentives (tax credits, renewable energy mandates), and technological advancements leading to cost reductions in wind turbine manufacturing and installation. The onshore segment will likely continue to dominate in the short-to-medium term, while the offshore segment will see accelerating growth as the necessary infrastructure develops and economies of scale are achieved. Competition among existing players and new market entrants will intensify, potentially leading to price decreases and enhanced innovation. Addressing regulatory uncertainties and environmental concerns through transparent and collaborative processes is crucial for sustained, environmentally responsible growth in the Chilean wind energy sector. Recent developments include: In February 2023, Ibereolica Repsol Renovables Chile began producing electricity at the 165-MW Atacama wind farm. It plans to generate around 450 GWh per year, equivalent to the annual consumption of more than 150,000 Chilean families and avert 320,000 metric tons of CO2 emissions., In December 2022, FairWind was chosen as the installation partner for Horizonte Wind Park in Chile, the largest onshore wind farm in Latin America under development. 140 Enercon E-160 EP5 wind turbines will be installed beginning in February 2023 and will be completely operational in May 2024., In November 2022, Enel's renewables division started work in Chile on a project combining wind turbines and a 34-MW battery energy storage system (BESS). Enel Green Power Chile is investing USD 190 million in the project, which includes 224.8 MW wind turbines and a 34.3 MW lithium-ion BESS.. Key drivers for this market are: 4., Increasing Investments in Wind Power Projects4.; Supportive Government Policies. Potential restraints include: 4., Increasing Investments in Wind Power Projects4.; Supportive Government Policies. Notable trends are: Onshore Segment to Dominate the Market.

Chile Wind Energy Market size was valued at USD 2.34 Billion in 2024 and is projected to reach USD 6.76 Billion by 2032, growing at a CAGR of 9.6% from 2026 to 2032.

Chile Wind Energy Market Drivers

Consistent Wind Speeds: Chile possesses abundant and consistent wind resources, particularly in the northern and southern regions. The Atacama Desert and Patagonia offer some of the highest wind potential globally.

Long Wind Resource Availability: The consistent wind patterns ensure reliable energy generation, making wind power a viable and attractive option.

Renewable Energy Goals: Chile has set ambitious renewable energy targets to diversify its energy matrix and reduce reliance on fossil fuels.

Renewable Energy Auctions: Government-led renewable energy auctions have been instrumental in driving wind energy development by providing long-term contracts and price stability.

Supportive Regulatory Framework: Chile's regulatory framework encourages renewable energy investments, providing clear guidelines and incentives for wind energy projects.

Chile Environmental Policy Stringency Index: Market Based Policies: Renewable Energy Trading Scheme data was reported at 2.000 NA in 2020. This stayed constant from the previous number of 2.000 NA for 2019. Chile Environmental Policy Stringency Index: Market Based Policies: Renewable Energy Trading Scheme data is updated yearly, averaging 0.000 NA from Dec 1990 (Median) to 2020, with 31 observations. The data reached an all-time high of 2.000 NA in 2020 and a record low of 0.000 NA in 2009. Chile Environmental Policy Stringency Index: Market Based Policies: Renewable Energy Trading Scheme data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Chile – Table CL.OECD.ESG: Environmental: Environmental Policy Stringency Index: OECD Member: Annual.

The Chilean solar photovoltaic (PV) market is experiencing robust growth, driven by supportive government policies aimed at increasing renewable energy adoption, decreasing electricity costs, and a strong commitment to reducing carbon emissions. The market's Compound Annual Growth Rate (CAGR) exceeding 5% since 2019 indicates a consistently expanding sector. Key market segments include residential, commercial & industrial (C&I), and utility-scale installations, with both rooftop and ground-mounted deployments contributing significantly. The increasing adoption of solar PV in the C&I sector reflects businesses' pursuit of cost savings and sustainability goals. While the exact market size for 2025 is not provided, given a CAGR above 5% since 2019 and considering the global trends in solar adoption, a reasonable estimate for the 2025 market size in Chile would fall within the range of $300-400 million USD. This figure is based on an extrapolation from the implied base year market size of roughly $200 million USD in 2024. Major players like TerraForm Power Inc, SunEdison Inc, Etrion Corporation, Mainstream Renewable Power, and Sonnedix are actively involved, fostering competition and innovation within the market. However, challenges remain, including intermittent solar irradiance (requiring effective energy storage solutions) and the need for continued investment in grid infrastructure to accommodate the influx of renewable energy. Despite these restraints, the long-term outlook for the Chilean solar PV market remains exceptionally positive, fueled by ongoing technological advancements, decreasing PV system costs, and sustained government support. The forecast period of 2025-2033 promises substantial expansion, further solidifying Chile's position as a leading renewable energy market in Latin America. Recent developments include: Mainstream Renewable Power is developing the USD 934 million Huemul wind and solar PV project, the second phase of the USD 1.8 billion Andes Renovables renewable energy platform, which is expected to have a total capacity of 1.3 GW when completed. A third phase is currently in the financing stage. The projects are expected to begin commercial operations between 2021 and 2022., Sonnedix is currently building the 171 MW Sonnedix Atacama Solar photovoltaic plant in the Pica district of the Atacama desert, one of the largest solar energy projects in Chile. The project includes the construction and operation of a 191.93 MW photovoltaic park, a substation, and a 220 kV transmission line with an approximate length of 15.6 km to the existing substation Los Maquis (220 kV), owned by local energy company Colbun.. Notable trends are: Rooftop Solar PV to Witness Significant Growth.

"Chile Wind Power Analysis – Market Outlook to 2030, Update 2021" is the latest report from GlobalData, the industry analysis specialists that offer comprehensive information and understanding of the wind power market in Chile. The research details renewable power market outlook in Chile (includes solar thermal, wind, biopower and solar power) and provides forecasts up to 2030. The report highlights installed capacity and power generation trends from 2010 to 2030 in Chile’s wind power market. A detailed coverage of renewable energy policy framework governing the market with specific policies pertaining to wind power is provided in the report. The research also provides company snapshots of some of the major market participants. The report is built using data and information sourced from proprietary databases, secondary research, and in-house analysis by GlobalData’s team of industry experts. Read More

Chile’s electricity market price has been on an overall increasing trend recently, reaching ***** Chilean pesos per kilowatt-hour in May 2024 (based on a four-month average ending in this month). The highest figure since the beginning of 2020 was ***** Chilean pesos per kilowatt-hour, recorded in April 2023. The cost of electricity generation in Chile In 2022, coal accounted for ** percent of Chile’s gross electricity generation, while natural gas contributed another ** percent. As such, the country’s electricity generation depends largely on fuel imports – for example, Chile's coal production plummeted over the last few years, recording a year-over-year decrease of around ** percent. In turn, the price of electricity in the Andean country is highly dependent on international fuel prices and the valuation of the U.S. dollar in comparison to the local currency. Nevertheless, the share of renewables in Chile’s power mix – namely hydro and wind power – has been continuously increasing in recent years, pointing to a reduction in the country’s dependency on imported resources for electricity generation. How does Chile’s electricity price compare with its Latin American neighbors? In June 2023, Chile’s household electricity price was just above the average residential electricity price of Latin American countries at **** U.S. dollars per kilowatt-hour. Chile’s residential electricity price was nearly double that of Mexico and over four times the price reported in Argentina in the same period. In terms of electricity for the commercial sector, Chile’s prices were below the Latin American regional average, and its electricity cost less than some South American countries, such as Brazil, Colombia, and Mexico.