The Chilean Case on Improving Power Transmission Within the Non-Conventional Renewable Energies Paradigm

Abstract

Although global discussions about climate change and transitioning to clean energy have focused on the development of non-conventional renewable energy (“NCRE”) like solar and wind generation, this new energy paradigm also presents challenges to states’ power transmission systems. This article first proposes a theoretical framework for analyzing the regulatory effectiveness of transmission sector regulations in light of challenges posed by growing NCRE generation. Next, it analyzes key regulations of the Chilean electricity sector as a case study—arguably one of the most successful cases of NCRE development in the Americas—and assesses the effectiveness of those regulations on facilitating NCRE development and solving contemporary transmission challenges in Chile. From this analysis, the article distills lessons, including the importance of developing a strong transmission system with the support of a regulatory framework that promotes NCRE development through long-term national energy policies and other forward-looking regulations.

Keywords: Energy Law, Transmission, Renewable Energies, Chile, Comparative Law, US, Renewable, Power, Electricity

JEL Classification: K1, K23, K30, K32, K00, Q4, Q40, Q48, Q49