From Policy to Practice: Non-Conventional Renewables Integration and Policy Reforms in Chile and Peru

Latin America's energy transition is advancing at different speeds across the region, with Chile and Peru representing two distinct approaches. Chile, a leader in renewable energy deployment, faces structural challenges, including financial difficulties among generators and transmission bottlenecks due to a lack of a robust infrastructure. Meanwhile, Peru remains in the early stages of its energy transition, with recent legal reforms attempting to facilitate non-conventional renewable integration but lacking a comprehensive national strategy. This paper examines regulatory challenges in both countries, focusing on their impact on market stability, investment climate, and long-term sustainability. The study underscores the importance of strategic policy design to avoid unintended economic consequences while ensuring a just and efficient transition to renewables. Lessons from Chile and Peru serve as a reference for neighboring countries navigating similar energy transitions.