According to a new report from international energy think tank Ember, Chile could save millions of dollars and make better use of its installed generation capacity if it reduces curtailment of renewables by making its electricity system more flexible.
The report highlights that each percentage point reduction in curtailment equates to an additional 295 GWh of clean energy per year, enough to power more than 120,000 homes and avoid losses of $15 million USD.
For example, installing an additional 1 GW of batteries could reduce curtailment in Chile by almost a quarter and generate savings of $68 million each year.
Chile wasted 19% of its solar and wind generation potential in 2024 due to curtailment – clean energy that cannot be harnessed due to restrictions in the electricity system – preventing the country from maximising its renewable potential.
The author of the report, Wilmar Suárez, Latin America energy analyst at Ember, explained, “Although Chile has already established itself as a global leader in clean energy, with a third of its electricity coming from solar and wind sources, reducing curtailment will be key to strengthening energy security, saving costs and maintaining its regional leadership.’
The study details that between 2022 and May 2025, more than 11,900 GWh of solar and wind electricity were not generated, representing a reduction in revenue of $562 million for renewable energy companies.
