Navigating the energy transition in South America : regulatory challenges and trends in Chile’s evolving energy legal landscape

Abstract

The Chilean electricity system is undergoing a profound transformation driven by climate goals and the imperative to reduce greenhouse gas emissions. This transition, characterized by significant state intervention and regulatory reforms, addresses the gaps left by market dynamics in achieving swift and comprehensive change. However, these changes bring challenges such as transitional risks and regulatory uncertainties that require the energy sector to integrate clean technologies while reshaping institutional frameworks. This article examines the regulatory challenges and trends in Chile’s energy law, focusing on four pivotal areas: the just energy transition, the right to energy, market regulation for the transition, and frameworks for emerging technologies. Through a thorough review of these dimensions, the paper highlights recent legal advances, regulatory innovations, and critical areas for reform. By offering a comprehensive analysis, it aims to illuminate how legal and regulatory tools can support Chile’s transition towards a sustainable and equitable energy system. This study contributes to the global discourse on the transition of energy by providing relevant insights for policymakers, researchers, and stakeholders.