Assumptions Shaping the Future of Chile’s Power Market

The energy paradigm in Chile is changing, driven by a surge in intermittent renewables such as wind and solar. This change in supply-demand dynamics is causing unprecedented hourly and locational price fluctuations, with volatility and curtailment becoming prevalent.

To address these challenges, new technologies like storage are entering the system and discussions on market designs are intensifying. In this rapidly changing environment, looking beyond the near-term horizon becomes critical when making long-term investment decisions.

In the session, we presented our analysis on the following key topics:

• How does the Chilean electricity market work, and how will changing supply and demand shape its future?
• Under our Central view, how do fundamental drivers such as demand and commodity prices evolve out to 2060?
• How do renewable profiles vary across the country?
• What is the projected evolution of costs for renewable technologies?
• What is our approach to modelling the Chilean power market?

If you have any questions about the content of this webinar or our Chilean Service, please get in touch with Enilio Alvarez.