The Chilean Association of Renewable Energies and Storage (ACERA) will approach the discussion on the modernization of electricity distribution with six principles that it considers essential for the new regulatory framework: technological neutrality; open and non-discriminatory access; interoperable data; recognition of storage and flexible demand; incentives for performance and resilience; and efficient hourly tariff signals .
The proposal comes at a time when the Chilean system is facing an increasingly visible gap between supply and consumption. In 2025, renewable generation plus storage reached 65.6% of electricity production , while demand on the National Electric System remained around 80 TWh and grew by only 0.4% year-on-year . At the same time, renewable energy cuts reached 6,084 GWh .
According to ACERA's executive director, Ana Lía Rojas , this scenario forces a redefinition of the role of distribution within the electrical system: "Distribution must evolve from a network that primarily delivers electricity to a platform capable of integrating generation, storage, electromobility and active consumers, while maintaining quality, safety and competitive costs."
The debate comes as the government formally begins the modernization process. On August 19 , the Ministry of Energy presented a work plan that will focus on distribution and related transmission issues as one of its primary priorities.
The union will seek to bring to that stage an agenda that is not limited to the physical expansion of the networks, but that introduces changes in access, data, tariff signals, flexibility and investment criteria .
For Rojas, the result will have a direct impact on the country's ability to take advantage of the renewable energy expansion already underway.
“Chile already has a renewable energy advantage. The challenge for the next five years is to build the networks, flexibility, and new demand that will allow us to turn it into competitiveness, productivity, and energy security.”
Technological neutrality to resolve constraints
One of the main demands of the industry association will be that network needs not automatically translate into new conventional infrastructure projects. ACERA proposes that, when faced with a constraint, alternatives such as physical expansions, storage, automation, or demand management be compared, and that the decision be made based on the most efficient solution.
The Coordinator's recent study on congestion associated with PMGD provides concrete background information. The analysis evaluated 176 substations, 251 HV/MV transformers, and 69 adjacent facilities , identifying congestion in 47 substations and 51 transformers. However, it also allowed for the permanent, partial, or temporary lifting of restrictions for certain projects when technical conditions made it possible.
According to Rojas, this type of evaluation should be deepened through granular information, transparent methodologies of available capacity, and periodic reviews of constraints .
"The network of the future requires managing capacity more dynamically: always protecting security and, at the same time, leveraging and releasing capacity when technical conditions allow."
Data, hourly rates and active consumers
Another area ACERA intends to address in the reform is demand participation . The association argues that digitalization should not be limited to installing meters, but should enable consumption decisions based on information and economic signals.
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Rojas identifies three conditions to achieve this: sufficiently granular and interoperable data, time-sensitive tariff signals, and a framework that allows consumers to respond to them .
This would allow, for example, shifting the charging of electric vehicles, pumping, air conditioning, desalination or some industrial processes to certain times, as well as using residential and commercial batteries as flexibility tools.
“An active consumer needs information, an economic signal, and the ability to respond. If we can enable these three conditions, digitalization becomes real flexibility for the system,” he stated.
The proposal is also linked to the goal of electrifying new energy consumption. According to figures presented by ACERA, electricity still represents around 23% of the country's total energy consumption , leaving ample room to replace fossil fuels in transportation, mining, industry, heating and cooling, and other productive uses.
How to recognize new investments
Financing the modernization will be another sensitive issue. ACERA acknowledges that new investments in automation, digitalization, resilience, and connectivity will be necessary, but argues that their recognition should be tied to verifiable improvements.
The discussion already has a recent precedent. Law 21,833 , published on July 31, authorized the Ministry of Energy to summon distribution concessionaires to present investment plans aimed at improving service quality, with the possibility of tariff recognition under the conditions established by the law.
Based on that foundation, the union proposes moving towards a scheme that links investments with performance, continuity, efficiency and the ability to integrate new resources , instead of recognizing infrastructure solely for the fact that it is built.
“It’s not simply about having more network. It’s about having a better network, using it efficiently, and linking investment to concrete results for the system and for users.”
Distributed storage and network access
The scale of energy storage is adding pressure to regulatory design. By mid-2026, Chile had approximately 3.1 GW of storage systems in operation and testing, 6.6 GW declared under construction, and more than 28 GW in various stages of environmental permitting .
According to ACERA, regulations should anticipate a greater presence of batteries behind the meter, distributed generation, and new electrified consumption. This implies reviewing not only connection conditions but also how these resources can provide flexibility to the system and access information on available capacity.
The goal, according to the industry association, is to prevent the growth of these technologies from outpacing the regulatory capacity of the networks to incorporate them.