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Chile unveils 2022-26 energy agenda

Bnamericas Published: Friday, August 26, 2022

Chile’s energy ministry – in the context of the government’s tax reform push – will put green and fuel taxes under the microscope as well as modify supply auction mechanisms. 

So reads the 2022-26 energy agenda, a four-year sector roadmap that supports an accelerated decarbonization of the country’s energy matrix.

Presented Thursday, the 128-page document outlines multiple other measures and actions planned for the next several years – in areas including power generation, green hydrogen and transmission – to support implementation of the country’s energy blueprint: the 2050 national energy policy. Chile has a goal of achieving carbon neutrality by 2050.

On the tax front, the agenda states: “Within the framework of the tax reform of the government of Chile, we will review the application of taxes that affect the energy sector in order to increase the competitiveness of renewable energies and reflect the negative environmental externalities of the use of fossil fuels.”

Chile’s government has already introduced the first of several planned tax reform bills due this year. Draft legislation that encompasses new green and carbon taxes has not yet been published. 

In terms of power supply auctions, the document states: “The proposed changes will establish, on the one hand, a new minimum for electricity generation from renewable energies, and on the other hand, the change in the auctions for electricity supply to regulated customers will allow the elimination of barriers so that renewable technologies 24/7 (and of storage) can compete.”

Other pillars encompass areas including rural electrification, regional energy integration, "sustainable fuel" usage quotas, hydrogen-gas blends, natural gas adoption, coal retirement, service quality and domestic biofuels.

Chile also has a draft energy efficiency plan, for which the sector is already preparing.

Click here to read the 2022-26 energy agenda

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