On July 2, 2026, the Ministry of Energy published Resolution N° 45/2026, approving the 2026–2030 Energy Roadmap (the “Roadmap”), a set of commitments and priorities designed to position energy as a driver of investment, enable infrastructure and modernize institutions. Among its measures, the Roadmap marks a milestone for a sector that has so far remained marginal in Chile: district energy, a system that supplies heating, cooling and domestic hot water to multiple buildings at once, through a network of insulated underground pipes running from a central generation plant to end users.
Chile has no regulatory framework for district energy. The Roadmap commits to closing that gap: the Government will submit a district heating bill to Congress aimed at regulating the industry, establishing its institutional framework and the incentives for its development.
The Roadmap also sets a target of connecting at least 500,000 users to district energy networks by 2050, with projects already identified in cities such as Santiago, Talca, Temuco, Coyhaique and Puerto Williams. As institutional support for this process, Chile has already established a District Energy Office tasked with providing technical support for the sector's development.
Until that law is enacted, key questions remain open: there is no dedicated regulatory or supervisory body; tariff-setting methodologies are undefined; municipal permitting for works on public roadways is untested; and exposure to unforeseen underground conditions in dense urban areas is high.
For foreign providers of technology, financing and know-how, Chile's district energy sector represents an emerging and replicable opportunity across the region, with business models ranging from wholly public or private operation to hybrid schemes such as joint ventures or concessions. A concrete milestone in this process was the announcement of Chile's first public tender for district heating and cooling systems, with pilot projects in the Santiago Metropolitan Area. The pilot shows what the model looks like in practice: a 1.74 km network powered by electric heat pumps serving 13 public and private buildings, including hospitals and university facilities, structured as a 30-year concession, with an estimated tariff of USD 0.1/kWh and a projected IRR of 12% without public subsidies.[1]
Chile's district energy sector is one to watch. As the regulatory framework matures and pilot projects move to implementation, the sector should open a concrete entry point for international providers of design, construction, operation and financing solutions, especially in a country where air quality remains one of the most pressing environmental challenges, and where this technology could open an entirely new market.
Nicolás Yuraszeck, Partner, Projects and Infrastructure, Prieto Abogados, nyuraszeck@prieto.cl
[1] Agencia de Sostenibilidad Energética & Ministerio de Energía de Chile. Recoleta and Independencia Project: District heating and cooling [Infographic]. National Office of District Energy (ONED). https://www.energiadistrital.cl/proyectos-piloto/