Chile is set to surpass its 2050 energy storage targets in just four years, with projects underway to add 1,800 MW of capacity by 2027. This remarkable acceleration places the South American nation at the forefront of the global energy transition, offering valuable insights for countries like Germany that are also navigating the complexities of decarbonization.
Chile’s 2050 Chile energy storage Goals
Chile is on the verge of a major milestone in its renewable energy journey. During the opening address of the Energy Storage Summit Latin America 2025, the country’s energy minister, Diego Pardow, announced that Chile is set to exceed its 2050 energy storage goals by 2027. This ambitious target was initially set in the National Energy Policy (PEN) 2050, which aimed for 20% of the nation’s installed capacity to come from energy storage systems by 2050. Now, Chile is poised to achieve this goal a full 23 years ahead of schedule.
This accelerated progress is critical for ensuring grid stability. As more intermittent renewable sources like solar and wind are added to the grid, energy storage becomes essential to balance supply and demand, a challenge well-understood in Germany with its own Energiewende. Pardow revealed that current projects under construction or approved will add 1,800 MW of capacity by 2027, representing 10% of the country’s installed capacity as of mid-2023. With this rapid pace, Chile is on track to reach the 20% threshold by 2030.
This remarkable progress is largely due to the growing number of renewable energy projects. By 2050, Chile is projected to have 100 GW of installed capacity, with 20% of that—or 20 GW—coming from storage systems. This would mark a 20-fold increase from current levels, driven by effective policies and declining technology costs.
Chile’s Energy Storage Boom in Chile
The central and northern regions of Chile will be the engine of this growth, with plans for 3,000 MW and 6,000 MW of energy storage capacity, respectively. These regions are ideal for solar and wind power generation, leveraging natural resources like the intense sunlight of the Atacama Desert. The massive build-out of solar capacity relies on a mature global supply chain, where an understanding of the basics of solar panel manufacturing has enabled incredible economies of scale.
The country currently has 646 MW of storage projects in operation, with an additional 2,300 MW under construction. This rapid expansion is transforming Chile into a global leader. The investment in this infrastructure is immense, reflecting the falling costs detailed in a typical solar panel manufacturing plant cost breakdown. Minister Pardow noted that Chile is on track to become one of the top five countries in the world for energy storage, alongside the United States, China, and Australia. This leadership can influence technology prices globally, potentially benefiting German homeowners and businesses looking to invest in solar.
Chile’s Commitment to Green Hydrogen and Chile energy storage
Chile’s progress in energy storage is part of a broader, integrated strategy for sustainability. The country has been actively promoting green hydrogen as a key pillar of its energy transition. The government recently launched a new green hydrogen strategy, aiming to position Chile as a leading producer and exporter of this clean fuel. This is particularly relevant for industrial nations like Germany, which will rely on significant green hydrogen imports to decarbonize sectors like steel and chemical production.
The strategy focuses on developing production in areas with abundant renewable resources, leveraging the same solar and wind power that is driving the storage boom. The government is also establishing regulatory frameworks and incentives to attract investment. By creating a robust ecosystem for renewables, storage, and hydrogen, Chile is building a blueprint for a fully decarbonized economy and positioning itself as a key future energy partner for Europe.
Chile’s success is a testament to its commitment to innovation and forward-thinking policy. By 2027, the country is expected to have surpassed its long-term energy storage goals, setting a powerful example for other nations to follow on their own paths to a sustainable future.
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