The Impact of PPPs on Renewable Energy Infrastructure Development in Latin America: A Focus on Chile

Abstract

Chile has emerged as a global leader in renewable energy development, leveraging innovative policy frameworks, competitive market mechanisms, and effective PPPs to revolutionize its energy sector. This paper examines Chile’s renewable energy transformation, focusing on the lessons it offers to other Latin American countries. Key factors behind Chile’s success include the implementation of clear and binding renewable energy targets, the use of competitive bidding processes to reduce project costs, and the alignment of renewable energy policies with global climate commitments. The study also highlights the socio-economic impacts of renewable energy growth in Chile, including job creation, improved energy access, and reductions in greenhouse gas emissions. However, challenges such as grid modernization, community opposition, and political risks remain significant. By analyzing Chile’s strategies and outcomes, this paper identifies actionable insights for Latin American countries aiming to accelerate their renewable energy transitions while balancing technical, economic, and social considerations. The findings underscore the importance of policy stability, stakeholder engagement, and regional collaboration in achieving sustainable and inclusive energy development.