Photo: Chinese President Xi Jinping met with Chilean President Gabriel Boric during the 2022 APEC meeting in Bangkok.
Chile’s ambitious carbon neutrality goals, supported by its National Green Hydrogen Strategy and advances in renewable energy, have presented significant opportunities for cooperation with China, with investments in hydrogen energy, wind and solar power, and sustainable mining operations.
Chile was the first South American country to establish diplomatic relations with China, under the socialist government of Salvador Allende in December 1970.
Chile signed a memorandum of understanding on the Belt and Road Initiative (BRI) on November 6, 2018. Since then Chinese investments in Chile have surged, focusing on large-scale, diversified projects in electricity, telecommunications, and infrastructure. These investments have played a key role in supporting Chile’s post-pandemic economic recovery and job creation.
Green and renewable energy
Chile has made significant strides in developing its green and renewable energy sectors, driven by its commitment to achieving carbon neutrality by 2050. Under its Nationally Determined Contribution (NDC), Chile has set ambitious goals, including peaking carbon emissions by 2025, reducing annual CO₂ emissions to 95 million tons by 2030, and achieving net-zero carbon emissions by 2050 through carbon capture and reduction technologies. Achieving these goals will require investments of US$27.3 billion to US$48.6 billion by 2050, demonstrating Chile’s dedication to a sustainable future. A cornerstone of this transition is the National Green Hydrogen Strategy, unveiled in 2020, which positions Chile as a global leader in green hydrogen production. By 2025, the country aims to install 5 GW of electrolysis capacity, with a vision to produce the world’s lowest-cost green hydrogen by 2030 and rank among the top three global exporters by 2040. This strategy anticipates US$200 billion in investments over 20 years and the creation of 100,000 jobs.
Chile’s abundant wind and solar resources, robust infrastructure, and progressive policies make it an attractive destination for Chinese companies seeking opportunities in green and renewable energy. Key collaboration areas include investments in hydrogen energy projects, and leveraging Chile’s advancements to develop scalable green hydrogen solutions. Chinese firms can also explore partnerships in wind and solar power generation and contribute to decarbonizing mining operations through advanced energy technologies. Moreover, the shared goal of sustainable development offers opportunities to establish green supply chains for critical minerals like copper and lithium, catering to the rising demand for low-carbon products globally while aligning with both nations’ sustainability objectives.
In recent years, bilateral economic and trade relations have maintained rapid growth. Currently, China is Chile’s largest global trading partner, the largest export destination, and the largest source of imports. Chile is China’s third-largest trading partner in Latin America and the largest source of copper imports.
According to the 2023 Energy Statistical Yearbook from the National Energy Commission, Chile has an installed electricity generation capacity of 33.2 GW. PV Magazine reports that Chile installed 2.14 GW of new PV capacity in 2024, according to the latest data, up from 1.65 GW of solar in 2023. The country’s total installed solar capacity rose to 10.5 GW by December 2024, accounting for 30.1% of its total power generation capacity.
Renewable energy plants (excluding hydro power) in the National Electric System (SEN) generated 3,451 GWh in December 2024, accounting for 47.0% of Chile’s total power generation.
Hydroelectric energy (77 plants) accounted for a further 22% of installed capacity in 2023, contributing approximately 7.4 GW to the national electricity system.
Sources:
- Statista, ‘Installed electricity generation capacity in Chile in 2023’. https://www.statista.com/statistics/762291/installed-power-capacity-technology-chile/
- Extracts from China Briefing, January 13, 2025. https://www.china-briefing.com/news/china-chile-economic-ties-trade-investment-and-future-prospects/
China Environment News 