Energy storage in Chile
Energy storage in Chile
Current regulatory developments
Updated September 2026
Chile ranked among the top five global BESS markets by deployment in 2025
US$2bn public bidding for storage announced
BESS remuneration depends on market segment and revenue streams cannot be stacked
Five things to know about BESS in Chile.
BESS can participate in transmission, generation, and ancillary services under existing law. Energy Storage Systems offer the versatility to participate in the transmission and generation segments, as well as the evolving market for ancillary services (Article 90, Decree No. 125). ESS in the generation segment are remunerated as a generation company being able to make arbitrage prices and sign PPA agreement. ESS in the transmission segment are remunerated under the same scheme applicable to new works of the transmission system. An ESS that participates in the generation segment cannot participate at the same time in the transmission segment and vice versa.
Permitting requirements are straightforward and consistent with other generation projects. Depending on the specific characteristics of the project, environmental approval may not be required for its execution. In other cases, however, environmental approval is required, for example where the project includes a high-voltage transmission line exceeding 2 kilometers in length. In all cases sectorial permits are required, as with any generation or transmission project in Chile.
Revenue sources include capacity payments, energy arbitrage, and transmission payments, though these are not complementary. The different revenue streams are not stackable. The remuneration of an ESS will depend on whether the ESS operates as an energy generator or as a transmission asset. In each case, the remuneration rules applicable to generators or transmission assets, as the case may be, will apply. Where the ESS operates as a generator, it will be entitled to engage in energy price arbitrage, enter PPAs, receive capacity payments (this has already been regulated specifically for the case of ESS), and provide ancillary services in exchange for the corresponding remuneration. Conversely, where the ESS operates as a transmission asset, it will generally need to be included in the centralized transmission expansion plan to be developed and will receive the regulated remuneration established under Chilean law.
No government subsidies are available, but the authority has announced US$2bn in public bidding. There are no direct government subsidies for battery storage; tax benefits are limited to broader renewable energy projects.
Chile is a top-five global BESS market and the world's second-largest lithium producer. This dual positioning as both a major deployment market and a critical supply chain participant (lithium production) makes Chile a strategically significant jurisdiction for BESS investors and developers.
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