Consumer (Co-)Ownership in Renewables in Chile

Against the background of supply deficiency and citizen opposition to the construction of large-scale hydro power plants, numerous movements against energy projects emerged during the last decade and ultimately paved the way for a participatory energy policy design process in Chile. The “Energy 2050” strategy was developed through a participative process that lasted over 18 months aiming at technical, political, and social legitimacy through the involvement of energy experts, civil society, bureaucrats, and government officials. “Energy 2050” set a shared vision of a long-term sustainable energy future which translated into a series of policy goals, of which the most relevant are a 70 per cent RE share in the electricity system by 2050 and the creation of partnership and shared value mechanisms between energy companies and communities. Although the renewable energy (RE) market is skewed towards international utility-scale projects, RE consumer (co-)ownership schemes have been able to evolve both on-grid and off-grid. Though legally allowed, partnership participation in RE projects has not been reported for energy generation projects. Limited Liability companies are common. Furthermore, electricity distribution cooperatives are active, for whom per DFL-1 law it is mandatory to provide electricity to interested parties in a geographical area for which they own the concession even if a loss is expected. Net Billing can be used by individuals or by organized groups of people sharing an electric connection to the grid. In the off-grid sector, electrification projects for poor and isolated communities may take different organizational structures, including private, municipal, or community-managed models depending on the local conditions, the commitment of local government, and the engagement of the community.