Industry Research Report on the Energy in Chile.¶

Value Chain outline¶

The energy industry value chain in Chile is broadly divided into three main stages: Generation, Transmission, and Distribution. Each stage involves distinct activities, players, and infrastructure to ensure electricity is produced, transported, and delivered to end-users.

Identification and description of each step in the value chain¶

Generation: This is the initial stage where electricity is produced from various primary energy sources. Chile utilizes a diverse mix, including hydroelectric power, thermal plants (coal, natural gas, diesel), and increasingly, non-conventional renewable energies like solar photovoltaic (PV), concentrated solar power (CSP), and wind power. The generated electricity is fed into the national grid.
Transmission: In this stage, high-voltage electricity is transported from the generation plants over long distances via a network of transmission lines and substations to areas closer to consumption centers. This high voltage minimizes energy loss during transportation. Transmission is a critical link connecting generation to distribution.
Distribution: The final stage involves stepping down the high-voltage electricity from the transmission substations to lower voltages suitable for use by homes, businesses, and industries. This is done through local distribution networks, which include poles, wires, and transformers, delivering power to the final customer.

Identification and description of segments for each step of the value chain.¶

Generation:
- Segments:
  - Hydroelectric: Utilizes the energy from flowing or falling water (run-of-river plants or plants with reservoirs).
  - Thermal: Generates electricity by burning fossil fuels such as coal, natural gas, or diesel. This segment is undergoing a transition towards cleaner sources and eventual decommissioning of coal plants.
  - Non-Conventional Renewable Energies (NCRE): Includes solar power (both photovoltaic and concentrated solar power), wind power, geothermal, biomass, and small-scale hydropower. This is a rapidly growing segment in Chile.
- List of types of players:
  - Large integrated energy companies.
  - Specialized generation companies (sometimes technology-specific like solar or wind developers).
  - State-owned or state-affiliated entities (less common in generation in Chile compared to transmission).
- Detailed description of the main activities within each segment:
  - Designing, building, and commissioning power plants.
  - Operating and maintaining power generation facilities.
  - Procuring and managing fuel supply (for thermal plants).
  - Managing water resources (for hydro plants).
  - Forecasting and managing electricity output based on resource availability (for renewables) and grid needs.
  - Selling electricity into the wholesale market or through power purchase agreements (PPAs) to distribution companies or large free customers.
  - Developing and integrating energy storage solutions (like batteries) to complement intermittent renewable sources.
- List examples of key players with detailed profiles:
  - Enel Chile S.A.: A major integrated energy company involved in generation using various technologies. Operates hydro and thermal plants and is actively developing renewables. A subsidiary of the global Enel Group.
  - AES Andes S.A.: Generates electricity through a diversified portfolio including hydro, thermal, and increasingly, renewable sources in Chile and other South American countries. Indirectly controlled by AES Corp.
  - Engie Energía Chile S.A.: A significant generator in Chile, supplying electricity mainly to mining, industrial, and distribution companies. It is transitioning its generation mix and is the fourth largest generator in Chile by installed capacity as of December 2024.
  - Colbún S.A.: Operates a mix of hydroelectric and thermal plants and is expanding into renewable projects and energy storage. Supplies power to electric suppliers, manufacturing, and mining clients.
  - Sonnedix: An international renewable energy producer with significant solar PV assets in Chile, acquired through the purchase of Arcadia Generación Solar S.A. Operates and develops solar projects.
  - Statkraft: A Norwegian state-owned company with international operations, including investments and development of wind power assets in Chile.
  - Cerro Dominador: Operates the first hybrid CSP and PV plant in Latin America in Chile, providing dispatchable solar power.
Transmission:
- Segments:
  - National Transmission System: Composed of high-voltage lines (500 kV, 220 kV, etc.) forming the backbone of the grid.
  - Sub-transmission Systems: Lines operating at intermediate voltages, connecting the national grid to distribution networks and large industrial users.
- List of types of players:
  - Dedicated transmission companies (often state-owned or regulated private monopolies for network operation).
  - Integrated energy companies (sometimes own transmission assets).
- Detailed description of the main activities within each segment:
  - Operating and maintaining high-voltage transmission lines and substations.
  - Planning and constructing new transmission infrastructure to meet demand growth and integrate new generation sources (especially renewables located in remote areas).
  - Ensuring the stability, reliability, and security of the national electricity grid.
  - Managing power flows across the network.
- List examples of key players with detailed profiles:
  - Transelec S.A.: The main electric energy transmission company in Chile, owning and operating a significant majority of the high-voltage transmission lines and substations across the country.
  - CGE (part of State Grid): While primarily a distribution company, it also owns transmission assets as CGE Transmisión.
Distribution:
- Segments:
  - Regulated Customers: Typically residential, commercial, and small industrial users who purchase electricity at regulated tariffs determined by the authority.
  - Free Customers: Large industrial and mining clients who have high energy consumption and can negotiate power purchase agreements directly with generation companies. Distribution companies provide the network service to these clients.
- List of types of players:
  - Electricity distribution companies (operating under concessions in specific geographical areas).
- Detailed description of the main activities within each segment:
  - Operating and maintaining the local distribution network (medium and low voltage lines, transformers).
  - Delivering electricity from transmission substations to end-users.
  - Installing and maintaining electricity meters.
  - Reading meters and billing customers.
  - Providing customer service and addressing service interruptions.
  - Managing the connection of new customers and distributed generation.
- List examples of key players with detailed profiles:
  - Enel Chile S.A. (via Enel Distribución Chile): One of the largest electricity distribution companies in Chile, serving a significant portion of regulated customers in the Metropolitan Region.
  - CGE (part of State Grid): One of the principal distribution companies in Chile, serving regulated customers across a wide geographical area.
  - Chilquinta Energía: Another significant electricity distribution company in Chile, operating within its specific concession area and serving regulated customers.

Show estimates of volumes and sizes of each step in the value chain.¶

Providing exact total market volumes and sizes for each step across the entire Chilean industry for 2024/2025 based solely on the snippets is challenging, as the data is largely player-specific. However, we can infer and present available data points related to size and volume at each stage based on the key players' performance.

Generation:
- Enel Chile's physical energy sales were 26,990 GWh as of September 2024. Net electricity generation was 5,581 GWh as of March 2025.
- Engie Energía Chile's energy sales reached 12.6 terawatt-hours (which is 12,600 GWh) in 2024.
- Engie Energia Chile accounts for 7% of the SEN's (National Electric System) installed capacity as of December 31, 2024.
- Cerro Dominador operates a 210 MW hybrid CSP and PV plant.
- Sonnedix owns 416 MW of photovoltaic capacity in Chile through Arcadia Generación Solar.
- Colbún signed energy sale contracts for 2,106 GWh per year in 2024.
- AES Andes completed construction or acquisition of 3.0 GW of renewables primarily in the United States and Chile in 2024.
Transmission:
- Transelec owns 26% of 500 kV lines, 49% of 220 kV lines, 90% of 154 kV lines, and 10% of 110 kV and 66 kV lines, indicating its dominant position in the transmission network size by infrastructure ownership. Transelec's income from ordinary activities in 2024 was CLP 445,475 million (approximately USD 470 million).
Distribution:
- Enel Distribución Chile serves over 2.1 million customers in the Metropolitan Region.
- CGE and Chilquinta Energía are also principal distribution companies serving large numbers of regulated customers. Customer numbers or energy distributed for CGE and Chilquinta are not explicitly detailed in the provided snippets for 2024/2025.

Value Chain Summary Table¶

Attribute	Generation	Transmission	Distribution
Description	Producing electricity from various sources (hydro, thermal, renewables).	Transporting high-voltage electricity over long distances.	Delivering lower-voltage electricity to final customers.
Segments	Hydroelectric, Thermal, NCRE (Solar PV, CSP, Wind, etc.)	National Transmission System, Sub-transmission Systems (by voltage levels).	Regulated Customers (residential, small commercial), Free Customers (large users).
Main Activities	Plant operation & maintenance, fuel/resource management, energy dispatch, new project development, energy sales.	Network operation & maintenance, grid expansion, stability management, power flow management.	Network operation & maintenance, metering, billing, customer service, outage management.
Types of Players	Integrated companies, Specialized generators, Renewable developers.	Dedicated transmission companies, Integrated companies.	Electricity distribution companies.
Examples of Key Players	Enel Chile, AES Andes, Engie Energía Chile, Colbún, Sonnedix, Statkraft, Cerro Dominador.	Transelec, CGE (owning transmission assets).	Enel Distribución Chile (part of Enel Chile), CGE, Chilquinta Energía.
Estimates of Volumes/Sizes (2024/2025 data from snippets)	Enel Chile sales: 26,990 GWh (Sep 2024), generation: 5,581 GWh (Mar 2025). Engie sales: 12.6 TWh (2024). Engie capacity: 7% of SEN (Dec 2024). Cerro Dominador capacity: 210 MW. Sonnedix Chile capacity: 416 MW. Colbún contracts: 2,106 GWh/year (2024).	Transelec network ownership: 26% of 500 kV, 49% of 220 kV, 90% of 154 kV, 10% of 110kV/66 kV lines. Transelec 2024 Income: ~$470 million USD.	Enel Distribución Chile customers: >2.1 million (Metropolitan Region). CGE, Chilquinta: Serve large numbers of regulated customers.

Examples of Main Players¶

Detailed profiles and relevant activities for key players in the Chilean energy sector, based on the provided context for 2024 and early 2025:

Enel Chile S.A.: A prominent integrated energy company in Chile with operations spanning generation, distribution (via Enel Distribución Chile), and other energy services. It is a subsidiary of the global Enel Group. Enel Chile operates a diverse portfolio of generation assets, including hydroelectric, thermal, and a growing presence in renewables. In Q1 2025, its Los Cóndores hydroelectric plant (153 MW) began commercial operations. The company is also involved in strategic asset management, like the sale of its solar subsidiary Arcadia Generación Solar to Sonnedix in October 2023. Enel Chile's physical energy sales increased to 26,990 GWh as of September 2024, although net electricity generation decreased to 5,581 GWh as of March 2025. The company reported revenues of approximately $5.05 Billion USD TTM in 2024 and operating revenues of approximately $4.2 billion USD as of December 2024.
AES Andes S.A.: Engaged in electricity generation across Chile, Colombia, and Argentina, with a focus on diversifying its energy matrix. AES Andes utilizes a mix of technologies including hydro, thermal, and renewables. The company is actively involved in developing renewable energy and energy storage projects. In 2024, AES Andes completed the construction or acquisition of 3.0 GW of renewables, including projects in Chile. While sales decreased in 2024 compared to 2023, the company saw an increase in EBITDA in the Chilean market in Q4 2024, partly attributed to increased renewable generation and cost reductions after coal plant disconnections. Sales in 2024 were USD 2,343.01 million.
Engie Energía Chile S.A.: Part of ENGIE LATAM, this company is a significant player in generation and transmission in Chile, primarily serving large mining and industrial customers as well as distribution companies. Engie Energía Chile is the fourth largest electricity generation company in Chile, holding 7% of the SEN's installed capacity as of December 31, 2024. The company is transitioning its generation fleet and reported a 28% increase in EBITDA in 2024. It is also investing in new technologies, having received environmental approval for its first energy storage project in June 2024 and implementing 1.3 to 1.4 GW of renewable capacity in 2024. Its revenue in 2024 was $1.8B.
Colbún S.A.: A Chilean company involved in electricity generation using hydroelectric and thermal sources, with expansion into renewables and storage. Colbún operates plants across Chile and Peru. It serves electric suppliers, manufacturing companies, and mining clients, securing significant energy sale contracts in 2024, including with major mining companies like Codelco and Antofagasta Minerals (2,106 GWh/year). Colbún is also investing in energy storage, with a US$260 million battery project (228 MW / 4 hours) in agreement with Tesla. The company's income from ordinary activities in 2024 was US$1,576 million.
Transelec S.A.: The principal electric energy transmission company in Chile, owning and operating the majority of the high-voltage transmission network extending across a vast geographical area. Transelec's infrastructure is critical for connecting generation sources to demand centers. The company owns significant percentages of different voltage level lines. In 2024, Transelec's ordinary activities income was CLP 445,475 million (approx. $470 million USD).
Sonnedix: An international renewable energy producer with substantial solar PV operations and development activities in Chile. Sonnedix acquired Arcadia Generación Solar S.A. from Enel Chile in October 2023 for approximately US$550 million, adding 416 MW of photovoltaic capacity in the Atacama and Antofagasta regions to its portfolio. Chile is a key country for Sonnedix's growth and M&A strategy.
Cerro Dominador: Operates a groundbreaking 210 MW hybrid plant in Chile, combining CSP and photovoltaic technologies to provide dispatchable solar power, contributing to grid stability. The plant began operation in 2021. The company has explored green hydrogen projects and is focused on increasing its base of unregulated customers. Business income represented 90% of total income in 2022.

Volumes and Sizes¶

Estimates of volumes and sizes for key players in the Chilean energy industry based on available 2024 and early 2025

Enel Chile S.A.:
- Physical energy sales: 26,990 GWh as of September 2024.
- Net electricity generation: 5,581 GWh as of March 2025.
- Enel Distribución Chile serves over 2.1 million customers in the Metropolitan Region.
- Operating revenues: Ch$ 3,987,135 million (approx. $4.2 billion USD) as of December 2024.
- Annual revenue in 2024: $4.15 billion USD, down 8.23% from 2023.
- Revenue (TTM): approximately $5.05 Billion USD in 2024.
AES Andes S.A.:
- Completed construction or acquisition of 3.0 GW of renewables (primarily in the US and Chile) in 2024.
- Sales: USD 2,343.01 million in 2024 (compared to USD 2,741.65 million in 2023).
Engie Energía Chile S.A.:
- Energy Sales: 12.6 terawatt-hours (12,600 GWh) in 2024.
- Installed Capacity: Accounts for 7% of the SEN's installed capacity as of December 31, 2024.
- Renewable capacity implemented: 1.3 to 1.4 gigawatts in 2024.
- Revenue: US$1,835.5 million in 2024. Revenue in 2024 was $1.8B, a 16.1% decrease from 2023.
Colbún S.A.:
- Energy sale contracts signed in 2024: 2,106 GWh per year.
- Investment in BESS Celda Solar battery project: US$ 260 million for 228 MW / 4 hours of storage.
- Ordinary activities income: US$1,576 million during 2024, a 21% decrease compared to December 2023.
- Sales: USD 1,575.98 million in 2024 (compared to USD 2,003.62 million in 2023).
- TTM revenue as of April 2025: €1.38 Billion.
Transelec S.A.:
- Network ownership: 26% of 500 kV lines, 49% of 220 kV lines, 90% of 154 kV lines, and 10% of 110 kV and 66 kV lines of the largest interconnected systems.
- Ordinary activities income: $445.475 million CLP in 2024 (approx. $470 million USD), a 5.5% decrease from 2023. Revenue has exceeded MM$ 400,000 in the last three years.
Sonnedix:
- Global capacity: Over 11 GW in 2024.
- Capacity in Chile: 416 MW of photovoltaic capacity through Arcadia Generación Solar.
- Acquisition of Arcadia Generación Solar: Approximately US$ 550 million in October 2023.
Statkraft:
- Global total power generation capacity: Rose by 10.3% to 21.4 GW in 2024.
- Net operating revenues globally: NOK 53.7 billion (approx. $5.1 billion USD) in 2024.
- Acquisition of Enerfin (with operations in Chile): NOK 18 billion in May 2024.
Cerro Dominador:
- Operates a 210 MW hybrid CSP and PV plant.
- Business income was 90% of total income in 2022 (most recent figure available in snippets).

References¶

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