Chile is taking a decisive step in the energy transition with the launch of its first district energy tender, in an emerging market full of opportunities for foreign companies providing technology, infrastructure, and specialized services.
Chile is moving toward a more sustainable and efficient energy model, opening a unique space for foreign companies to invest in district heating and cooling systems.
The first public tender in this area marks a turning point in the country’s energy transition, with pilot projects in the municipalities of Independencia and Recoleta, in the Santiago Metropolitan Region.
Chile is at the center of the regional energy transition
The International District Energy Conference for Latin America and the Caribbean—organized by the Ministry of Energy and the Energy Sustainability Agency, with financing from the Global Environment Facility (GEF) and the support of organizations such as the UN Environment Programme, UN Industrial Development Organization, the Swiss State Secretariat for Economic Affairs (SECO), and the International District Energy Association (IDEA)—was recently held in Santiago.
The event brought together around 200 representatives from more than 10 countries, including developers, industry associations, development banks, academia, public institutions, and international authorities.
More than 25 international experts from North America, Europe, Asia, and the Middle East shared experiences on district heating and cooling, highlighting cases from the United States, Denmark, Colombia, Brazil, and Ecuador.
District energy: An emerging market in Chile
District energy is based on centralized sources to provide heating, cooling, and hot water to several buildings through underground networks.
By harnessing renewable energy sources such as biomass or geothermal, it significantly reduces dependence on fossil fuels and decreases urban pollution.
In Chile, where air pollution is one of the main environmental challenges, this technology opens up a new market for international providers of design, construction, operation, and financing solutions for district energy systems.
During the event, Environment Minister, Maisa Rojas, emphasized that «today, district energy is a real lever for healthier, safer and more climate-responsible cities.»
The first tender: A gateway for investors
One of the most important milestones of the conference was the announcement of the upcoming launch of the first public tender for district heating and cooling systems in Chile, with pilot projects in the municipalities of Independencia and Recoleta.
«Today we can announce the launch of the first tender to open the market with projects in Independencia and Recoleta. This marks a turning point, generating concrete solutions to make our cities more sustainable,» said Undersecretary of Energy, Luis Felipe Ramos.
This step makes Chile a pioneer in the region and opens the door for foreign companies specializing in technology, infrastructure, operations services, financing, and consultancy in district energy.
An attractive investment ecosystem
«We have worked on all fronts that this requires, including technical, economic, financial, administrative, and regulatory aspects,» said Rosa Riquelme, Executive Director of the Energy Sustainability Agency.
InvestChile’s Energy Sector Leader, Mauricio Riveros, who participated in the event as a speaker, noted that attracting foreign investment will be key to consolidating this emerging market with high growth potential in the country.
In addition, the Energy Policy 2050 sets the goal of connecting at least 500,000 users to district energy networks by 2050, with projects identified in cities such as Santiago, Talca, Temuco, Coyhaique, and Puerto Williams.
Chile offers a robust institutional framework, support from multilateral organizations, and a long-term political commitment to promote district energy.
This represents a concrete opportunity for foreign companies providing technologies, financing, and know-how to participate in a fast-developing market, with the potential to be replicated in other cities and countries in the region.
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