Reducing solar and wind energy curtailment represents an opportunity to reach the maximum potential of renewable generation in Chile, reducing the need for expensive gas and coal generation.
The increase in the share of variable renewable energies in the electricity mix poses technological and market operation challenges to harness the full potential of clean generation. For every percentage point Chile manages to reduce its curtailments, 295.5 GWh of clean electricity would be available for use in the market per year, enough to supply electricity to more than 120,000 homes for a year.
- The capacity factor of solar generation plants in Chile is double the world average. Chile is among the countries in the world with greatest potential for renewable energy; in solar, some regions achieve a capacity factor above 30%, double the world average, and in wind, 34%, in line with the world average.
- Solar and wind energy curtailments in 2024 were equivalent to 6.6% of all electricity generated in Chile. 5,642 GWh of solar and wind energy were curtailed in 2024, corresponding to 19% of all electricity supplied by these sources during the year.
- Since 2022, curtailments have represented losses of $562 million dollars. 11,900 GWh of renewable electricity was curtailed between January 2022 and May 2025, leading to underutilisation of renewable generation infrastructure and causing a reduction in income for investors.
- Large infrastructure projects that will reduce curtailments will come online after 2029. The main transmission project, the 1,400-km Kimal-Lo Aguirre line, will significantly increase renewable energy dispatch capacity, but will not be operational for another four years. In the meantime, measures are needed to manage curtailment.
- 1 GW of new installed battery storage capacity would reduce curtailment by almost a quarter. Under current conditions, increasing installed battery capacity by 1 GW, with 4 hours of storage duration, and locating them in areas of high grid congestion, could prevent 1,300 GWh of solar and wind generation from being curtailed annually, saving $67.6 million dollars annually.
- The installation of dynamic line rating (DLR) systems could increase effective line capacity by 10-30%. The implementation of a national programme for the mass installation of DLR, focusing on the lines with the highest levels of congestion, could take less than three years and have a direct impact on reducing curtailment.
- Demand response markets, with strengthened transmission and increased storage capacity,are key to reducing curtailment. The electricity markets that better manage curtailment empower consumers with information and incentives to participate in formal demand response markets, complemented by sufficient transmission capacity and storage systems located at key points to capture excess generation and deliver electricity during peak demand hours.
