Chile adds 2.4GW of new photovoltaic power generation, and power restrictions are "eating away"

Chile will see a record 5,909GWh of solar PV and wind generation in 2024, up 121% from the previous year, according to the Chilean Association of Renewable Energy and Energy Storage (ACERA).

In 2024, Chile will have nearly 6TWh of renewable energy generation curtailed, nearly 1.5TWh more than the industry association predicted in October based on 2023 data. At last year’s Latin American Energy Storage Summit, ACERA Executive Director Ana Lía Rojas estimated that Chile’s solar PV and wind curtailments would exceed 4.5TWh.

If solar PV and wind did not suffer any curtailments in 2024, their share of the country’s annual electricity generation would be 47%, instead of 40%.

The nearly 6TWh of solar PV and wind curtailments in 2024 represent about a fifth (20%) of solar PV and wind generation.

Worse, while solar PV adds 2.2TWh of solar PV capacity between 2023 and 2024, its curtailment increases by 2.7TWh in 2024.

“This means that all new solar generation is ‘cannibalized’ by curtailment, which shows that the structural issues of integrating more renewables need urgent attention as it reduces the positive impact of our clean energy,” Rojas explained.

In some cases, curtailment of solar PV plants exceeds 50% throughout the year, meaning it is often unable to operate, causing significant losses to investors and the grid, Rojas added.

The industry association said that insufficient electricity demand and a lack of transmission networks in areas with high renewable energy penetration have been the main causes of curtailment in Chile last year.

Energy storage system has become a necessity for solar PV projects in Chile to be financially viable and could help address curtailment issues in the coming years. By 2024, there are 3GW of energy storage capacity in operation, testing or construction, with 19GW in various stages of evaluation.

According to a LinkedIn post by energy consultancy Blend Energy, its 3GW portfolio of energy storage projects has an average duration of 3.9 hours.

Record year for renewable energy investment in Chile

On a more positive note, Chile saw a sharp increase in renewable energy investment, up 231% year-over-year. In 2024, renewable energy investment reached a record $5.7 billion.

Last year, Chile’s clean energy (including hydropower and non-conventional renewables) accounted for 68% of the country’s total electricity generation.

“This progress makes Chile a regional leader, but it also reminds us that we need to continue to work to overcome the structural barriers that continue to hinder the deployment of renewable energy technologies,” said Sergio del Campo, president of ACERA.

Chile added 2.4GW of solar PV capacity in 2024, bringing the total cumulative solar PV capacity to 11.7GW, the largest technology in terms of installed capacity, by wind and natural gas.

More than half (61%) of Chile’s solar PV capacity is located in the solar-rich northern region, with 35% in the Antofagasta region and 26% in the Atacama region.