Chile loses $562 million to rising solar and wind curtailment
Summary
Ember says Chile has curtailed 11,900 GWh of renewable generation since 2022 due to grid congestion, costing operators $562 million.
<p class="p1"><span class="s1">Ember says Chile has curtailed 11,900 GWh of renewable generation since 2022 due to grid congestion, costing operators $562 million.</span></p><p><strong>From <a href="https://www.pv-magazine-latam.com/2025/10/06/un-informe-de-ember-revela-los-altos-costos-del-vertimiento-de-renovables-en-chile-y-propone-como-reducirlos/" rel="noopener" target="_blank">pv magazine LatAm</a></strong></p>
<p>A new <a href="https://ember-energy.org/app/uploads/2025/09/ES-Reporte-Reducir-los-vertimientos-en-Chile-una-clave-para-aprovechar-al-maximo-las-energias-renovables-6.pdf" rel="noopener" target="_blank">report</a> by Ember shows that solar and wind curtailment in Chile has risen sharply, causing significant financial losses for power producers. Since 2022, the country has failed to integrate about 11,900 GWh of renewable generation into the grid, resulting in estimated losses of $562 million.</p>
<p>In 2024 alone, curtailed solar and wind generation accounted for 6.6% of Chile’s total electricity output, or about 5,642 GWh — equivalent to 19% of all renewable generation during the year, according to the “Reducir los vertimientos en Chile: una clave para aprovechar al máximo las energías renovables<em>” </em>report<em>. </em></p>
<p>The growing volume of undispatched renewable electricity has become an economic drag on investors. Ember estimates that cutting curtailment by just one percentage point could release roughly 295 GWh of additional power each year, generating substantial financial benefits.</p>
<p>The report identifies several causes behind Chile’s high curtailment levels, including overloaded transmission lines, rigid dispatch protocols, inflexible market design, and insufficient energy storage to absorb generation peaks.</p>
<p>Ember proposes a set of measures to reduce curtailment losses, such as deploying large-scale battery energy storage systems, introducing dynamic line ratings to expand transmission capacity, enabling demand response programs to align consumption with renewable output, and reforming market rules to allow variable generators to participate in ancillary services.</p>
<p>The Kimal–Lo Aguirre transmission line is highlighted as critical for easing grid congestion, though it is not expected to enter service until the end of the decade. Ember warns that without immediate action, curtailment volumes will continue to rise, undermining the financial viability of future renewable projects that lack mitigation strategies.</p>