Ministry of Energy begins diagnostic process to drive changes in the electricity generation sector
The ministry will begin a data-gathering process with the industry between December and February to evaluate potential regulatory amendments or a legislative bill for this sector, which accounts for nearly 80% of the system's participants.
The Ministry of Energy has announced the start of a new diagnostic and information-gathering phase involving stakeholders in the electricity industry. The primary objective is to evaluate and implement transformations within the generation segment, whether through regulatory adjustments or new legislation.
This work was formally launched during the “Generating for Growth” (“Generar para Crecer”) seminar, held at the La Moneda Cultural Center. As Minister of Energy Ximena Rincón explained, while prior assessments already existed for distribution networks, such work has not yet been carried out for the generation sector.
Market Diagnosis and Diversity
The generation segment is the most fragmented part of the National Electric System (SEN):
Total Participation: It comprises 692 of the 877 companies coordinated by the National Electric Coordinator (CEN), representing 79% of the total.
Composition of Coordinated Entities: This includes 481 Small-to-Medium Distributed Generation (PMGD) projects, 192 large-scale generators, and 19 Small-to-Medium Generation (PMG) projects.
Market Concentration: The four largest groups (Enel, the Matte Group, AES Corporation, and Engie) account for 51% of total generation. Meanwhile, 33% of the market consists of smaller companies, each with an individual share of less than 2%.
Current Energy Mix: According to the CEN’s competition monitoring report, the generation mix consists of 33% thermal energy, 32% solar, 19% hydroelectric, 16% wind, and 0.2% geothermal. Roadmap and Next Steps
The portfolio strategy seeks to align sector priorities to ensure energy security, resilience, and competitiveness:
Information gathering (December – February): Dialogue and collection of background information from sector stakeholders.
Concrete proposal (March): Formulation of proposals for regulatory adjustments (technical standards, decrees) or integration into legislative initiatives.
