The Ministerio de Energía or Ministry of Energy of Chile, published the final Planificación Energética de Largo Plazo (PELP) or Long-Term Strategic Planning (PELP) 2023-27 on April 22, 2025, which is in accordance with Articles 83-86 of the Ley General de Servicios Eléctricos (LGSE) or General Law of Electric Services.
PELP is a public policy instrument released every five years to ensure sustainable, resilient, and fair development of Chile’s power sector. It projects energy supply and demand scenarios, identifies development hubs for renewable energy generation, and provides guidance for investment decisions in the transmission sector. Further, PELP contributes towards the development of Chile’s Energy Sectoral Plan for Climate Change Mitigation and Adaptation, Green Hydrogen Action Plan 2023-30, and Decarbonization Plan.
The latest PELP has defined three scenarios, namely, slow recovery, carbon neutrality, and accelerated transition. It has also introduced Polos de Desarrollo de Generación Eléctrica (PDGE) or Electricity Generation Development Hubs, for the first time in the energy sector. These PDGEs will be established across the provinces of Antofagasta and Tocopilla. In Tocopilla, two renewable generation zones are being designed, with the aim of offsetting the outgoing thermal generation power in the municipality. In Antofagasta, three zones are being designed in the municipalities of Sierra Gorda and Taltal, which are based on site-specific energy potential.
EGlobal’s Views: Chile has immense untapped potential for development of new large-scale renewable energy projects and the country has become a renewable energy development hotspot in recent years. These recent policy directives will help support the growing renewable energy market in the country and attract more investments in this space.
