Smart-grid development in Chile: Technological conditions, limitations, and policy pathways

The transition toward smart grids represents a fundamental transformation of electric power systems, integrating digital technologies, decentralized resources, and low-carbon energy sources. This study evaluates the development of smart grids in Chile’s National Electric System (SEN) through a conceptual framework based on three core dimensions: digitalization, decarbonization, and decentralization. Within this framework, the Chilean case is assessed in terms of the deployment of key enabling technologies associated with smart grids, allowing for a structured evaluation of their degree of penetration. The results indicate that Chile has achieved significant progress in digitalization and decarbonization, supported by its strong renewable energy potential and institutional framework; however, decentralization remains comparatively limited due to regulatory and market constraints that restrict distributed generation and active end-user participation. To capture this imbalance, the concept of a macro-intelligent grid is introduced, describing systems in which technological advancement does not fully translate into distributed capabilities. The findings highlight the need to complement large-scale infrastructure development with policies that promote distributed resources, energy storage, and retail market modernization. The proposed approach provides a structured framework for evaluating smart grid deployment and offers relevant insights for designing more balanced and effective energy policies.