Chile energy transition and electrification challenges

A report by Uno Punto Cinco titled ‘Estado de la electrificación en Chile 2026’ highlights a discrepancy between Chile’s renewable energy generation and its total energy consumption. Although renewable sources accounted for 65.6% of electricity generation in 2025, electricity represents only 22.3% of the nation’s total final energy consumption. Consequently, 85% of energy use remains dependent on fossil fuels such as petroleum, gas, coal, and wood. Benjamín Carvajal, executive director of Uno Punto Cinco, noted that the issue is not a supply of clean energy, but a “demand problem regarding its use.”

In response to these challenges, Energy Minister Ximena Rincón has emphasized the need to transition renewable advancements into final energy consumption to improve efficiency and autonomy. Efforts to expand the electrical grid are also being directed toward rural areas. In the Arica y Parinacota region, the Ministry of Energy, the Municipality of Camarones, and CGE are developing a roadmap to extend the grid to the localities of Chitita, Cerro Blanco, and Ofragía.