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

This report by Ember analyzes the challenge of solar and wind energy curtailment in Chile, where renewable generation has grown rapidly but is hindered by limited transmission and storage capacity. It proposes a phased package of policy and technical measures—including battery storage, dynamic line rating, and demand response markets—to reduce waste and maximize the potential of Chile's clean energy resources over the next five years.

• Solar and wind energy curtailment in Chile has increased significantly, reaching 5,642 GWh in 2024. This amount represents 19% of all electricity supplied by these sources and 6.6% of the total electricity generated in the country for that year.
• Curtailment has caused substantial economic losses for renewable energy generators. Between January 2022 and May 2025, 11,900 GWh of renewable electricity was curtailed, resulting in estimated losses of $562 million dollars.
• The primary drivers of curtailment in Chile are geographical challenges and infrastructure lags. Specifically, there is a decoupling between generation (concentrated in the north) and demand (concentrated in the central region), combined with a transmission network that has not expanded at the expected pace.
• Chile's curtailment rates are significantly higher than other systems with similar variable renewable energy (VRE) penetration. For a VRE share of 34%, Chile's 19% curtailment in 2024 far exceeds that of Ireland (around 8%), Germany (4.5%), and Spain (1.2%).
• Increasing battery energy storage system (BESS) capacity could significantly mitigate curtailment. Adding 1 GW of BESS capacity with 4 hours of storage in high-congestion areas could prevent 1,300 GWh of annual curtailment, reducing the rate from 19% to 14.6% and saving $67.6 million dollars annually.
• The implementation of Dynamic Line Rating (DLR) systems is recommended as a short-term solution. DLR can increase effective transmission line capacity by 10-30% by calculating maximum transport capacity in real-time based on variables like temperature and wind speed.
• The report recommends a phased approach to reduce curtailment over five years: short-term (under 2 years) focus on a National Curtailment Reduction Plan and DLR; medium-term (2-4 years) focus on demand response markets and location incentives; and long-term (up to 5 years) focus on mass demand response implementation and electricity exchange markets with Argentina and Peru.
• Major transmission infrastructure projects are planned but will not be operational until 2029 or later. Key projects include the 1,400-km Kimal-Lo Aguirre (HVDC) line and the 250-km line from Nueva Maitencillo to Nueva Pan de Azúcar.

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} }