Minister Rincón announces the start of talks with Chilean power generators and a trip to Bolivia to advance energy integration

Energy Minister Ximena Rincón announced that on November 9th she will begin a working process with stakeholders in the electricity generation sector to identify their main challenges and define measures to address them. She made the announcement during her participation in the session of the Infrastructure Policy Council (CPI), chaired by former President Eduardo Frei.

She explained that the call for proposals regarding generation will follow a participatory methodology similar to that used in the electrical grid modernization project, which has the support of the CPI. “We must have a shared understanding, just as we have for the grid,” Rincón noted. The minister clarified that this process is different from the contract renegotiation addressed in the legislation approved in July and emphasized that generation represents the most significant component of the electricity bill.

The minister also highlighted that the electrical interconnection was the only agreement reached with Bolivia during the recent presidential visit and announced that she will travel to that country on November 11, along with representatives from industry and public services, to further bilateral energy integration. She explained that the visit will continue the consensus reached and signed by the presidents of both countries.

He added that they are also working with Peru and Argentina and raised the possibility of using the mining integration agreement model with the latter country as a reference.

Regarding service quality, Rincón set the goal of reducing power outages from approximately 15.2 hours per year to four hours by 2035. He linked this objective to the modernization of the networks, which are essential for the service to withstand storms and allow the connection of new productive activities.

The minister did not rule out considering a model for the construction and operation of electricity transmission infrastructure similar to that of public works concessions, with a more active role for the State in project preparation. She explained that companies awarded transmission line contracts must manage land acquisition, easements, and environmental impact assessments before beginning construction. “We must bring the logic of concessions to electricity infrastructure. The State should pave the way, and the company should build,” she stated.

Rincón also called for integrating the various connectivity needs from the planning stage of public works projects. “Every public works project should also be an energy project and a digital connectivity project,” he stated. As an example, he affirmed that the Chacao Bridge project did not include plans for incorporating electrical and digital connections to the island, which will necessitate additional construction.

Regarding the networking work supported by the CPI, he indicated that shared diagnoses already exist and that it is necessary to move forward with developing the required regulatory, technical, and legal changes. He specified that some of the difficulties can be resolved through management and coordination within the public sector, while others require updating legislation.

Rincón also highlighted the cost of Chile's dependence on imported fuels. He noted that in 2025, Chile spent US$12.5 billion on importing oil, gas, and coal. "Every liter we replace with a Chilean kilowatt-hour represents security, competitiveness, and sovereignty," he asserted, calling for increased electrification of transportation, heating, and productive activities.

He also acknowledged that transmission limitations affect rates. He noted that electricity bills in the Los Ríos and Los Lagos regions would not decrease after January 2027 because their networks lack sufficient capacity to receive energy from the north. He linked this situation to the need to upgrade the electrical infrastructure.

Among the opportunities to increase electricity demand, he highlighted data centers and announced that he would expedite the existing working group with the Ministries of Science and National Assets. He explained that these investments require legal certainty, clean energy, and continuity of supply.

The minister asked the CPI to continue providing technical support for the modernization of the grid and to contribute to a national agreement to electrify Chile. “The energy transition lasts longer when it is a national effort, not when it is the responsibility of a single government,” she stated.

CPI support

At the meeting—held at the Inacap campus in Vitacura—CPI Executive Director Carlos Cruz highlighted the Council's participation in the working groups promoted by the Ministry, with a view to future regulatory changes. "From our role as a private entity," he said, "we want to contribute with public policy proposals for an industry that is fundamental to the country." He emphasized that they are currently working on the modernization of the networks and that the goal is to finalize discussions in December in order to have a draft bill ready by March. This initiative stemmed from the seminar they jointly held in August.

Analyzing the energy situation, Cruz maintained that, despite its growth, Chile remains highly dependent on fossil fuels. "Only 23% of our energy mix is electricity, the presence of natural gas is still very limited, and green hydrogen is a feasible promise, but it is still just a promise," he stated.

In that context, he identified a dual challenge: accelerating decarbonization goals and increasing energy independence. "The changes that fossil fuels have undergone recently have not only affected prices but also political stability. That is something we must be able to prevent with appropriate public policies," he noted.

The CPI's executive director stressed that the country's potential in non-conventional renewable energy "is still a natural advantage that we have not transformed into a competitive advantage," and that the goal should be to ensure supply, system resilience, and competitive prices.

Among the main sticking points, Cruz highlighted the tariff paradox: "Today, free market customers, who can negotiate directly with generators, pay less than regulated customers, when it should be the other way around." He also reiterated the urgency of accelerating transmission, although he emphasized that smaller, local generation allows production to be brought closer to consumption centers.

Regarding the future, he mentioned that natural gas —including access to the Argentine resource— and green hydrogen will play a key role in complementing electrification.