IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v198y2025ics0301421524004701.html
   My bibliography  Save this article

Analysis of rural electrification policy formulation in Chile: Key policy challenges for developing rural electrification based on off-grid systems

Author

Listed:
  • Nasirov, Shahriyar
  • Agostini, Claudio A.
  • Silva, Carlos
  • Gutierrez-Lagos, Luis

Abstract

Over the last decades, different regulatory reforms have played an important role in designing successfully public policies for rural electrification. One of the key aspects of such reforms was the introduction of market-based reforms in the power sector. In this context, this research analyzes the case of Chile, focusing on how its market-based reforms influenced the design and implementation of rural electrification policies and the main factors that have contributed to their success. The analysis is based on a set of interviews with actors directly involved in rural electrification policymaking, alongside an extensive analysis of the existing evidence in the academic literature. Chile was a pioneer in the implementation of liberalization reforms in its power sector and has also been recognized for its effective policies in rural electrification in Latin America. However, the advances have been mostly accomplished through grid extensions, limiting the access in more isolated rural zones. As a result, there are still significant challenges for the development and implementation of more effective rural electrification policies. In this context and based on the analysis of the interviews and the evidence in the literature, the paper discusses the role that can play on off-grid PV and wind systems, a resource available in most of the Chilean territory.

Suggested Citation

  • Nasirov, Shahriyar & Agostini, Claudio A. & Silva, Carlos & Gutierrez-Lagos, Luis, 2025. "Analysis of rural electrification policy formulation in Chile: Key policy challenges for developing rural electrification based on off-grid systems," Energy Policy, Elsevier, vol. 198(C).
  • Handle: RePEc:eee:enepol:v:198:y:2025:i:c:s0301421524004701
    DOI: 10.1016/j.enpol.2024.114450
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421524004701
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2024.114450?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Bonan, Jacopo & Pareglio, Stefano & Tavoni, Massimo, 2017. "Access to modern energy: a review of barriers, drivers and impacts," Environment and Development Economics, Cambridge University Press, vol. 22(5), pages 491-516, October.
    2. Bensch, Gunther, 2019. "The effects of market-based reforms on access to electricity in developing countries: a systematic review," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(2), pages 165-188.
    3. Jörg Peters & Maximiliane Sievert, 2016. "Impacts of rural electrification revisited – the African context," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 8(3), pages 327-345, July.
    4. María Schmukler, 2020. "Is local adequacy of technology a pathway towards social inclusion? The challenges of rural electrification in Argentina," Innovation and Development, Taylor & Francis Journals, vol. 10(2), pages 263-278, May.
    5. Kenneth Lee & Edward Miguel & Catherine Wolfram, 2020. "Experimental Evidence on the Economics of Rural Electrification," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1523-1565.
    6. Ahlborg, Helene & Boräng, Frida & Jagers, Sverker C. & Söderholm, Patrik, 2015. "Provision of electricity to African households: The importance of democracy and institutional quality," Energy Policy, Elsevier, vol. 87(C), pages 125-135.
    7. Pablo Serra & Ronald Fischer, 2000. "Regulating the Electricity Sector in Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2000), pages 155-218.
    8. M. Pollitt, 2004. "Electricity reform in Chile. Lessons for developing countries," Competition and Regulation in Network Industries, Intersentia, vol. 5(3), pages 221-263, September.
    9. Tooraj Jamasb & Rabindra Nepal & Govinda R. Timilsina, 2017. "A Quarter Century Effort Yet to Come of Age: A Survey of Electricity Sector Reform in Developing Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    10. Gore, Christopher D. & Brass, Jennifer N. & Baldwin, Elizabeth & MacLean, Lauren M., 2019. "Political autonomy and resistance in electricity sector liberalization in Africa," World Development, Elsevier, vol. 120(C), pages 193-209.
    11. Bayer, Patrick & Kennedy, Ryan & Yang, Joonseok & Urpelainen, Johannes, 2020. "The need for impact evaluation in electricity access research," Energy Policy, Elsevier, vol. 137(C).
    12. Linder, Stephen H. & Peters, B. Guy, 1990. "Policy formulation and the challenge of conscious design," Evaluation and Program Planning, Elsevier, vol. 13(3), pages 303-311, January.
    13. Bitran, Eduardo & Serra, Pablo, 1998. "Regulation of privatized utilities: The Chilean experience," World Development, Elsevier, vol. 26(6), pages 945-962, June.
    14. Leonore Haelg & Sebastian Sewerin & Tobias S. Schmidt, 2020. "The role of actors in the policy design process: introducing design coalitions to explain policy output," Policy Sciences, Springer;Society of Policy Sciences, vol. 53(2), pages 309-347, June.
    15. Elena Verdolini & Laura Díaz Anadón & Erin Baker & Valentina Bosetti & Lara Aleluia Reis, 2018. "Future Prospects for Energy Technologies: Insights from Expert Elicitations," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 133-153.
    16. Sarah Feron & Raúl R. Cordero & Fernando Labbe, 2017. "Rural Electrification Efforts Based on Off-Grid Photovoltaic Systems in the Andean Region: Comparative Assessment of Their Sustainability," Sustainability, MDPI, vol. 9(10), pages 1-23, October.
    17. Frida Borng & Sverker C. Jagers & Marina Povitkina, 2021. "In Light of Democracy and Corruption: Institutional Determinants of Electricity Provision," The Energy Journal, , vol. 42(2), pages 165-182, March.
    18. Alejandro Jadresic, 2000. "Promoting Private Investment in Rural Electrification : The Case of Chile," World Bank Publications - Reports 11425, The World Bank Group.
    19. Craft, Jonathan & Howlett, Michael, 2012. "Policy formulation, governance shifts and policy influence: location and content in policy advisory systems," Journal of Public Policy, Cambridge University Press, vol. 32(2), pages 79-98, August.
    20. Gustavsson, Mathias, 2007. "Educational benefits from solar technology--Access to solar electric services and changes in children's study routines, experiences from eastern province Zambia," Energy Policy, Elsevier, vol. 35(2), pages 1292-1299, February.
    21. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
    22. Banna, Hasanul & Alam, Ashraful & Chen, Xihui Haviour & Alam, Ahmed W., 2023. "Energy security and economic stability: The role of inflation and war," Energy Economics, Elsevier, vol. 126(C).
    23. Michael Howlett & Jeremy Rayner, 2013. "Patching vs Packaging in Policy Formulation: Assessing Policy Portfolio Design," Politics and Governance, Cogitatio Press, vol. 1(2), pages 170-182.
    24. Kenneth Lee & Edward Miguel & Catherine Wolfram, 2020. "Does Household Electrification Supercharge Economic Development?," Journal of Economic Perspectives, American Economic Association, vol. 34(1), pages 122-144, Winter.
    25. Michael Howlett & Ishani Mukherjee, 2014. "Policy Design and Non-Design: Towards a Spectrum of Policy Formulation Types," Politics and Governance, Cogitatio Press, vol. 2(2), pages 57-71.
    26. Haanyika, Charles Moonga, 2006. "Rural electrification policy and institutional linkages," Energy Policy, Elsevier, vol. 34(17), pages 2977-2993, November.
    27. Michael Howlett & Ishani Mukherjee, 2014. "Policy Design and Non-Design: Towards a Spectrum of Policy Formulation Types," Politics and Governance, Cogitatio Press, vol. 2(2), pages 57-71.
    28. repec:idb:brikps:82983 is not listed on IDEAS
    29. Banal-Estañol, Albert & Calzada, Joan & Jordana, Jacint, 2017. "How to achieve full electrification: Lessons from Latin America," Energy Policy, Elsevier, vol. 108(C), pages 55-69.
    30. Ibrahim Shittu & Abdul Saqib & Abdul Rais Abdul Latiff & Siti ‘Aisyah Baharudin, 2024. "Energy Subsidies and Energy Access in Developing Countries: Does Institutional Quality Matter?," SAGE Open, , vol. 14(3), pages 21582440241, August.
    31. Comello, Stephen D. & Reichelstein, Stefan J. & Sahoo, Anshuman & Schmidt, Tobias S., 2017. "Enabling Mini-Grid Development in Rural India," World Development, Elsevier, vol. 93(C), pages 94-107.
    32. Akbas, Beste & Kocaman, Ayse Selin & Nock, Destenie & Trotter, Philipp A., 2022. "Rural electrification: An overview of optimization methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    33. Ivan Nygaard & Touria Dafrallah, 2016. "Utility led rural electrification in Morocco: combining grid extension, mini-grids, and solar home systems," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 5(2), pages 155-168, March.
    34. Graham, Erin R. & Shipan, Charles R. & Volden, Craig, 2013. "The Diffusion of Policy Diffusion Research in Political Science," British Journal of Political Science, Cambridge University Press, vol. 43(3), pages 673-701, July.
    35. David Marsh & J.C. Sharman, 2009. "Policy diffusion and policy transfer," Policy Studies, Taylor & Francis Journals, vol. 30(3), pages 269-288.
    36. Kenneth Lee & Edward Miguel & Catherine Wolfram, 2020. "Does Household Electrification Supercharge Economic Development?," Journal of Economic Perspectives, American Economic Association, vol. 34(1), pages 122-144, Winter.
    37. Rosamaría Dasso & Fernando Fernandez, 2015. "The effects of electrification on employment in rural Peru," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-16, December.
    38. Michael Howlett & Jeremy Rayner, 2013. "Patching vs Packaging in Policy Formulation: Assessing Policy Portfolio Design," Politics and Governance, Cogitatio Press, vol. 1(2), pages 170-182.
    39. Jeuland, Marc & Fetter, T. Robert & Li, Yating & Pattanayak, Subhrendu K. & Usmani, Faraz & Bluffstone, Randall A. & Chávez, Carlos & Girardeau, Hannah & Hassen, Sied & Jagger, Pamela & Jaime, Mónica , 2021. "Is energy the golden thread? A systematic review of the impacts of modern and traditional energy use in low- and middle-income countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    40. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    41. Namrata Chindarkar, 2017. "Beyond Power Politics: Evaluating the Policy Design Process of Rural Electrification in Gujarat, India," Public Administration & Development, Blackwell Publishing, vol. 37(1), pages 28-39, February.
    42. Teresiah Wairimu Ng’ang’a & Jeanne Y. Coulibaly & Todd A. Crane & Charles K. Gachene & Geoffrey Kironchi, 2020. "Propensity to adapt to climate change: insights from pastoralist and agro-pastoralist households of Laikipia County, Kenya," Climatic Change, Springer, vol. 161(3), pages 393-413, August.
    43. Fiona Burlig & Louis Preonas, 2024. "Out of the Darkness and into the Light? Development Effects of Rural Electrification," Journal of Political Economy, University of Chicago Press, vol. 132(9), pages 2937-2971.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ankel-Peters, Jörg & Bensch, Gunther & Köngeter, Alexandra & Rauschenbach, Mascha & Sievert, Maximiliane, 2024. "Are rural energy access programs pro-poor interventions?," Ruhr Economic Papers 1117, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Pelz, Setu & Aklin, Michaël & Urpelainen, Johannes, 2021. "Electrification and productive use among micro- and small-enterprises in rural North India," Energy Policy, Elsevier, vol. 156(C).
    3. Ankel-Peters, Jörg & Schmidt, Christoph M., 2023. "Rural electrification, the credibility revolution, and the limits of evidence-based policy," Ruhr Economic Papers 1051, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Bensch, Gunther & Gotz, Gunnar & Peters, Jörg, 2020. "Effects of rural electrification on employment: A comment on Dinkelman (2011)," Ruhr Economic Papers 840, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Jeuland, Marc & Fetter, T. Robert & Li, Yating & Pattanayak, Subhrendu K. & Usmani, Faraz & Bluffstone, Randall A. & Chávez, Carlos & Girardeau, Hannah & Hassen, Sied & Jagger, Pamela & Jaime, Mónica , 2021. "Is energy the golden thread? A systematic review of the impacts of modern and traditional energy use in low- and middle-income countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    6. repec:osf:metaar:zhn9b_v1 is not listed on IDEAS
    7. Ankel-Peters, Jörg & Bensch, Gunther & Moull, Kevin & Rauschenbach, Mascha & Sievert, Maximiliane, 2025. "Cost-effectiveness of rural energy access strategies," Energy Policy, Elsevier, vol. 203(C).
    8. Simone Tagliapietra & Giovanni Occhiali & Enrico Nano & Robert Kalcik, 2020. "The impact of electrification on labour market outcomes in Nigeria," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 737-779, October.
    9. Amuakwa-Mensah, Salome & Surry, Yves, 2022. "Association between rural electrification and agricultural output: Evidence from Sub-Saharan Africa," World Development Perspectives, Elsevier, vol. 25(C).
    10. Adom, Philip Kofi & Nsabimana, Aimable, 2022. "Rural access to electricity and welfare outcomes in Rwanda: Addressing issues of transitional heterogeneities and between and within gender disparities," Resource and Energy Economics, Elsevier, vol. 70(C).
    11. Gupta, Ridhima & Pelli, Martino, 2021. "Electrification and cooking fuel choice in rural India," World Development, Elsevier, vol. 146(C).
    12. Masselus, Lise & Ankel-Peters, Jörg & Gonzalez Sutil, Gabriel & Modi, Vijay & Mugyenyi, Joel & Munyehirwe, Anicet & Williams, Nathan & Sievert, Maximiliane, 2024. "10 years after: Long-term adoption of electricity in rural Rwanda," Ruhr Economic Papers 1086, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    13. Bharadwaj, Bishal & Subedi, Mukti Nath & Malakar, Yuwan & Ashworth, Peta, 2023. "Low-capacity decentralized electricity systems limit the adoption of electronic appliances in rural Nepal," Energy Policy, Elsevier, vol. 177(C).
    14. Meeks, Robyn C. & Thompson, Hope & Wang, Zhenxuan, 2025. "Decentralized renewable energy to grow manufacturing? Evidence from microhydro mini-grids in Nepal," Journal of Environmental Economics and Management, Elsevier, vol. 130(C).
    15. Poignant, Adrian, 2025. "Electricity and female employment: Evidence from Tajikistan’s winter energy crisis," Journal of Development Economics, Elsevier, vol. 172(C).
    16. d'Adda, Giovanna & Mahmud, Mahreen & Said, Farah & Bonan, Jacopo, 2020. "The Role of Flexibility and Planning in Repayment Discipline: Evidence from a Field Experiment on Pay-as-You-Go Off-Grid Electricity," RFF Working Paper Series 20-14, Resources for the Future.
    17. Saha, Sanjoy Kumar, 2025. "Empowering rural South Asia: Off-grid solar PV, electricity accessibility, and sustainable agriculture," Applied Energy, Elsevier, vol. 377(PC).
    18. Lai, Wangyang & Lin, Liguo & Shen, Xiaochi & Zhou, Maigeng, 2025. "Investing in a transition fuel: The remarkable decline in mortality from China's rollout of natural gas infrastructure," Journal of Environmental Economics and Management, Elsevier, vol. 130(C).
    19. Fetter, T. Robert & Usmani, Faraz, 2024. "Fracking, farmers, and rural electrification in India," Journal of Development Economics, Elsevier, vol. 170(C).
    20. repec:osf:osfxxx:sw6kd_v1 is not listed on IDEAS
    21. Igawa, Moegi & Managi, Shunsuke, 2022. "Energy poverty and income inequality: An economic analysis of 37 countries," Applied Energy, Elsevier, vol. 306(PB).
    22. Blimpo, Moussa P. & Postepska, Agnieszka & Xu, Yanbin, 2020. "Why is household electricity uptake low in Sub-Saharan Africa?," World Development, Elsevier, vol. 133(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:198:y:2025:i:c:s0301421524004701. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.