"Nobody is doing anything": Chilean SMEs still without a response to millions in debt for renewable energy projects

Debts owed to SMEs supplying energy projects in northern Chile remain a key issue on the sector's agenda. The conflict, which began to gain significant traction in 2021, exposes a tension that has yet to find a structural solution: local companies that provide services, lease machinery, transport workers, or supply inputs for renewable energy projects are left stranded when contractors or subcontractors disrupt the payment chain.

The complaint was once again brought to the attention of the current authorities. Mauricio Ocaranza , spokesperson for SMEs defrauded in the Northern Zone , told Energía Estratégica that he raised the issue at the beginning of the year, amidst the conflict he was experiencing with companies linked to renewable energy projects.

“I informed the minister at the beginning of the year, because I was dealing with this situation with another company. I met with the chief of staff and the regional secretary. In fact, the regional secretary told me, 'Mauricio, we need to pass a law.' I replied, 'Secretary, the law already exists.' But the problem is that in the end, nobody does anything,” he said.

For Ocaranza, the official perspective remains insufficient when the conflict is framed solely as a dispute between private parties.

“The State says it can’t intervene because these are private matters, and some things don’t add up. If the land belongs to the State, and the permits are issued by the State, can anyone just come and invest in the country? I don’t think so,” he argued.

Meanwhile, Ocaranza confirmed that he managed to resolve his particular conflict with Metlen , related to work associated with the company Green Hands .

“I did it two months ago, definitely, but I ended up losing more than I gained. I had no other choice. I preferred to recover something rather than lose everything,” he said.

He explained that in his case the debt was around 630 million Chilean pesos, of which he had to assume a loss of more than 330 million pesos.

“Behind me there are families, workers, machinery, assets, and one has to continue fulfilling obligations,” he remarked.

The specific case of Ocaranza was resolved, but his argument points to a broader problem. He maintained that similar situations have been recurring in photovoltaic projects in the northern macrozone since 2021, with national and international contracting companies failing to honor commercial agreements with local suppliers.

“They would hire you for services, pay for a month, two months, and then disappear. They would leave behind debt, and the companies that commissioned them would do nothing about it, they wouldn't take any action,” he stated.

The complaint from the affected SMEs involves nearly 130 companies in the energy sector and an amount exceeding $14 billion , according to the interviewee. While this figure does not appear as official consolidated data in public documents from the Ministry of Energy, the Ministry has formally acknowledged the existence of payment chain disruptions in energy projects in the northern region.

In its 2022-2023 National Public Account , the Ministry reported that, as a result of these bankruptcies, it promoted measures to prevent the situation from recurring and to support the affected SMEs. These measures included mediation efforts to encourage payment to suppliers by clients, contractors, or subcontractors; facilitating access to BancoEstado loans; coordinating with the Ministry of Economy regarding FOGAPE (a government loan guarantee program); and promoting a bill to prevent future bankruptcies.

In addition, the authority indicated that it worked with the Ministry of National Assets to modify the bidding rules for state-owned land intended for renewable energy projects, establishing the obligation of payment within 30 days for SMEs linked to projects built on said land.

The most sensitive regulatory point lies in the responsibility of the contracting company. Currently, Chilean regulations include labor and social security responsibilities within subcontracting arrangements, but commercial claims from suppliers—regarding invoices, services rendered, equipment rental, or supplies—leave SMEs in a more vulnerable position.

In this context, Ocaranza brought up again the bill that amends Law No. 20,416 , which seeks to make the main company or owner of the project jointly liable for the payment of goods delivered or services performed by micro, small, and medium-sized enterprises (MSMEs) as suppliers. The initiative, Bill 14011-03 , was introduced in 2021 and reached the Senate after passing through the Chamber of Deputies.

He also criticized the effectiveness of the 30-Day Payment Law , which states that the payment obligation contained in an invoice must be fulfilled within a maximum period of 30 calendar days from its receipt, except for regulated exceptions.

“The 30-day payment law doesn’t work. Client companies don’t require performance bonds or they hire just any company without experience,” he questioned.

The warning takes on greater significance as Chile accelerates a new phase of its energy transition. The Ministry's 2026-2030 Energy Roadmap acknowledges the country's strong progress in renewables, but states that the challenge now extends beyond simply incorporating clean technologies; it also requires ensuring security, resilience, fair prices, and legal certainty to implement the necessary projects. The roadmap also identifies more competitive and equitable energy for households and SMEs as a key priority.

This growth also implies new pressure on the supply chain.

“It might not happen to me today, it might happen to another business owner. I understand that these payment difficulties have resurfaced in other projects here in the northern region. Especially now with the boom in the famous BESS projects, so everything is starting all over again,” he warned.

The concern is not to halt renewable energy investment, but to regulate the conditions under which projects are implemented. For local companies, the energy transition must also be measured by its capacity to generate sustainable production chains, regional employment, and clear rules for those who support operations on the ground.

“Then the contractors or we business owners are the ones who cause problems because we generate all this noise. But if no one takes action, I'm not going to let it go,” Ocaranza concluded.