The Superintendency of Electricity and Fuels (SEC) determined that stand-alone storage systems may not begin or continue their connection processes to distribution networks until the Technical Standard for Connection and Operation (NTCO) expressly regulates their operation.
The instruction is contained in Electronic Circular Letter No. 341,785, published on July 14, 2026 , which implements the modifications introduced by Supreme Decree No. 1 to the regime of Small Means of Distributed Generation (PMGD - project of up to 9 MW capacity) and small-scale storage systems.
The measure affects projects that were preparing to submit their applications and initiatives with ongoing procedures, considering that the PMGDs reach 3820 megawatts (MW) of operational capacity, while the PMGs add another 501 MW, so that together they represent just over 10% of the net installed power considered for the system.
“The recent SEC letter CE No. 341785 establishes a pause that generates some uncertainty and stops Stand Alone storage projects that were preparing to begin their connection process,” warns Mauricio Utreras , executive director of Independent Energy Generators Trade Association (GIE AG).
The problem does not lie in the legal recognition of the technology. Supreme Decree No. 1 formally incorporated storage within the PMGD segment , but its effective deployment was subject to a technical adjustment that is not yet available.
“Decree No. 1 formally recognized storage within this segment,” Ana Lía Rojas , executive director of the Chilean Association of Renewable Energies and Storage (ACERA), highlighted on her social media.
The SEC has identified several issues that must be resolved before allowing the connection. These include procedures for drawing electricity from the grid to charge batteries , coordination with distributors, and prioritizing supply to end customers.
Measurement and recording requirements must also be defined to differentiate withdrawals intended for charging from other consumption , in addition to the methodology for allocating and distributing the electrical losses associated with the operation of these assets.
Until the NTCO establishes those conditions, the SEC's ruling prevents the applications from moving forward. For ACERA, the restriction transforms the lack of secondary regulations into a concrete barrier to project entry.
“We are concerned that the lack of this technical regulation will, in practice, prevent progress in connecting stand-alone BESS projects under the PMGD regime, especially considering that the NTCO required to make their incorporation operational is not yet available,” Rojas argues.
The association appreciates that the official document mandates the application of the new framework and clarifies the rules for ongoing cases. However, it believes that administrative clarity does not resolve the technical impossibility of connecting pure storage systems .
GIE also acknowledges that the enactment of the decrees necessitates a review of regulations, procedures, and operating criteria. The association participated in the public processes for modifying the regulations for small-scale generation and storage facilities, as well as in adjusting the coordination and operation provisions of the National Electric System.
“We understand that, after the promulgation of these regulations, work must be done on a process of regulatory adaptation that is not insignificant,” Utreras points out.
However, the implementation sequence must prioritize the modifications that are currently blocking investments. The request aims both to accelerate the update of the NTCO and to evaluate mechanisms that allow projects to proceed while the new design is being finalized.
“We hope that the authorities will expedite the priority regulatory changes and seek alternatives to unblock and avoid stalling the progress of these projects,” says the CEO of GIE AG.
The document also redefines the handling of Network Connection Requests (SCR) . The new rules will take effect 30 calendar days after the publication of Supreme Decree No. 1.
Projects submitted before the change came into effect and that had already begun their technical studies may complete that stage under Supreme Decree No. 88. This condition will remain in place until the issuance of the corresponding Connection Criteria Report (ICC) .
However, previous applications for which studies have not yet begun, and all new applications, must be processed entirely under the modified rules. ICCs issued must comply with the new validity periods and extension mechanisms .
The SEC also mandates that all stages be managed through the PMGD Platform . When a developer submits paper documentation, the distribution company must digitize it and incorporate it into the electronic system.
In addition , 22 mandatory forms, from F1 to F22 , have come into effect. Forms F13A and F13B will be used to communicate the final results of electrical studies and to express compliance, while F22 will be used for disconnections and withdrawals.
Ongoing procedures requiring responses from distributors must adopt the new formats immediately. Files under review of studies may use temporary forms for that phase, but the ICC must be issued using the updated F14 form .
The systemic cost of delaying distributed storage
The discussion is not limited to fulfilling a procedural requirement. Distributed storage systems allow for the management of renewable energy surpluses, the shifting of electricity to peak demand periods, and improved utilization of the grid infrastructure .
Therefore, the adaptation of the NTCO (National Technical Standard) must reconcile the incorporation of these assets with network security, service quality, and continuity of supply to customers . For ACERA, finalizing these definitions is the essential step to transform legal authorization into operational projects.
“It is essential to promptly complete the technical regulations that will allow this progress to materialize, safeguarding the security of the networks, the quality of service and the supply to customers,” says Rojas.
The duration of the block will depend on how quickly the authority resolves the outstanding issues. Meanwhile, developers do not have a way to initiate or continue connections under the PMGD regime, even though the new decree now recognizes storage within that segment.
“We hope that this agenda can be addressed with speed, coordination and collaboration between the authorities and the actors in the sector, avoiding delays in investments needed for the energy transition,” concludes the executive director of ACERA.