Reducing curtailment in Chile: key to unlocking the full potential of renewable energy

Chile faces significant renewable energy curtailment due to limited transmission and storage capacity, with 5,642 GWh of solar and wind energy curtailed in 2024. The report recommends a National Curtailment Reduction Plan, the mass installation of Dynamic Line Rating (DLR) systems, minimum storage requirements for new projects in congested areas, and the creation of a formal demand response market. It also suggests strengthening electricity exchange markets with Argentina and Peru to improve system flexibility.

• Solar and wind energy curtailment in Chile has increased sharply, reaching 5,642 GWh in 2024, which represents 19% of all electricity supplied by these sources and 6.6% of Chile's total electricity generation for that year.
• Curtailment has caused substantial economic losses for renewable energy investors, totaling an estimated $562 million dollars between January 2022 and May 2025, with 11,900 GWh of electricity curtailed in that period.
• The primary drivers of curtailment in Chile are geographic challenges requiring long transmission lines, a lack of sufficient storage capacity, and a delay in integrating flexibility tools compared to the rapid installation of renewable generation.
• Major transmission infrastructure projects to alleviate congestion, such as the 1,400-km Kimal-Lo Aguirre line and the Nueva Maitencillo to Nueva Pan de Azúcar line, are not expected to be operational until 2029.
• Increasing installed battery energy storage capacity (BESS) by 1 GW with 4 hours of duration in high-congestion areas could reduce annual curtailments by nearly 25%, preventing 1,300 GWh of waste and saving $67.6 million dollars annually.
• The implementation of a national Dynamic Line Rating (DLR) program could increase effective transmission line capacity by 10-30% and could be operational in less than three years.
• Chile's curtailment rates are significantly higher than other markets with similar variable renewable energy (VRE) penetration; for a 34% share, Ireland's curtailment was around 8%, Germany's 4.5%, and Spain's 1.2%, compared to Chile's 19% in 2024.

APA

Suárez, W. (2025). Reducing curtailment in Chile: key to unlocking the full potential of renewable energy. Ember. https://ember-energy.org/app/uploads/2025/09/EN-Report-Reducing-curtailment-in-Chile-key-to-unlocking-the-full-potential-of-renewable-energy.pdf

Chicago

Suárez, Wilmar. Reducing curtailment in Chile: key to unlocking the full potential of renewable energy. Ember, 2025. https://ember-energy.org/app/uploads/2025/09/EN-Report-Reducing-curtailment-in-Chile-key-to-unlocking-the-full-potential-of-renewable-energy.pdf.

Wikipedia

{{cite report |last1=Suárez |first1=Wilmar |title=Reducing curtailment in Chile: key to unlocking the full potential of renewable energy |publisher=Ember |date=25 September 2025 |url=https://ember-energy.org/app/uploads/2025/09/EN-Report-Reducing-curtailment-in-Chile-key-to-unlocking-the-full-potential-of-renewable-energy.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{surez2025reducing, author = {Suárez, Wilmar}, title = {{Reducing curtailment in Chile: key to unlocking the full potential of renewable energy}}, institution = {Ember}, year = {2025}, month = sep, url = {https://ember-energy.org/app/uploads/2025/09/EN-Report-Reducing-curtailment-in-Chile-key-to-unlocking-the-full-potential-of-renewable-energy.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }