Conclusions
The increasing risk of stable hydropower generation due to droughts caused by climate change, the heavy dependence on fossil energy imports with volatile prices, and the increasing environmental and social opposition to mega-energy projects have put signifcant pressure on the Chilean government to start considering alternative sources of energy.
As a result, the introduction of incentives to foster renewable energy supplies (e.g., approval of RPS law, the redesign of power auctions, and the approval of a new transmission law) has transformed the country into a hotbed of renewable energy investment in the region. Although Chile currently leads the market-driven transition to renewables, it still needs to appropriately address a multitude of cross-cutting barriers to complete its shift to a completely sustainable energy matrix. An efective transition requires a good combination of clear decision making, consistency in government policies, greater emphasis on solving the implementation challenges of energy auctions, long-term planning, and a commitment to tackling transmission challenges to accommodate large amounts of renewable energies in the power system.