Chile’s power grid struggles with wind and solar boom, gas demand stays healthy

Chile’s power grid capacity has failed to keep pace with the South American country’s rapid uptake of non-conventional renewables, leading to the curtailment of wind and solar energy while supporting demand for natural gas. This cap on the energy supplied by wind and solar plants, combined with declining hydropower output, is likely to see Chile import more gas and LNG as it also aims to phase out coal-fired power plants. However, gas demand in Chile beyond 2030 faces an uncertain future as the country targets more battery storage systems, industry experts tell Gas Matters.