Power sector in 2030
Chile’s power sector would need to be the first sector to reach zero emissions between 2030–2038. This will be possible through a strong uptake of renewable energy (including variable renewables, hydro and biomass) to reach a share of between 87–99% by 2030 and 100% by 2040. Chile’s National Energy Policy sets targets to reach renewables share of 80% by 2030 and 100% by 2050_. These targets will need to be strengthened accordingly to be aligned with a 1.5°C pathway.
A lower penetration of renewable energy will lead to a higher need for CDR technologies such as Bioenergy with carbon capture and storage (BECCS), Direct Air Carbon Capture (DACCS) or others, to compensate for emissions from remaining fossil fuels.
Towards a fully decarbonised power sector
In 2019, coal made up roughly 37% and fossil gas 19% of Chile’s total power generation.
The full decarbonisation of Chile’s power sector in line with the 1.5°C goal requires coal to be phased out by around 2025 and fossil gas by 2031-35.
However, Chile has only committed to phasing out two thirds of its coal fired power stations by 2025, with a full phase-out date set for 2040. In its 2050 Energy Strategy, the government still plans to rely on liquified natural gas (LNG) in 2050, far too late when compared to a 1.5°C aligned gas phase-out date.
On an ambitious step is Chile’s green hydrogen strategy, which aims to position Chile as the world’s cheapest supplier of green hydrogen by 2030.