Chilean energy industry to invest US$23 billion in energy transition

Chile’s energy industry has pledged to invest US$23 billion in the country’s energy transition over the next five years, the Energy Ministry announced Tuesday.

Chilean Energy Minister Claudio Huepe met Tuesday with Chile’s main power producers to discuss investment, growth, and development in the sector in the country’s south.

“We know this sector is fundamental for national development and economic growth. That is why we discussed several issues related to how we can work together in a public-private partnership to achieve better results,” he said.

He explained that this investment will allow us to lead the energy transition and work together on the challenges needed to achieve the country’s goal of being carbon neutral and climate resilient by 2050 at the latest.

It also includes photovoltaic and wind power generation projects, storage, and green hydrogen from Arica (north) to Magallanes (south).

The latter energy is obtained through electrolysis, which is the separation of hydrogen and oxygen from water using electrical energy, and when it comes from renewable sources, the hydrogen is called green.

At the meeting, the leaders of the power generation companies also stressed the importance of promoting frameworks such as a robust and timely transmission and storage grid, streamlined permitting practices, predictable regulation and land-use planning.

They also called for early dialogue with communities and promotion of best practices by companies in the area.

On June 13, Chile passed the Framework Law on Climate Change, which establishes the fight against climate change as a public policy and sets out the mechanisms the country will use to address the phenomenon.