Chile has exceptional conditions for clean energy production. How can this potential be harnessed for a more efficient and sustainable agribusiness sector? In this expert blog, we explore three specific opportunities.
Chile has consolidated its position as a leader in renewable energy in Latin America, with strong growth in solar and wind power and, more recently, major investment announcements in green hydrogen, positioning the country as one of the main future producers in this emerging industry.
This progress has been driven by world-class natural resources—such as the sunlight of the Atacama Desert and the winds of Patagonia—along with consistent public policies and a stable investment climate that continues to attract foreign capital.
At the same time, Chile’s agribusiness sector—internationally recognized for its export quality, with shipments exceeding US$23 billion in 2024—is addressing the challenge of ensuring more efficient and sustainable production in the face of water scarcity and climate change.
In that regard, the Greenhouse Gas Mitigation and Reduction Plan for Agriculture (2023) prepared by the Office of Agricultural Studies and Policies (ODEPA) highlights the importance of replacing fossil fuels with renewable energy, and optimizing energy efficiency to reduce emissions in the agriculture sector.
The energy transition presents both challenges and opportunities that impact producers of all sizes, promoting flexible solutions tailored to a variety of production models.
Energy and agribusiness: The key to sustainable production systems
Electricity plays a crucial role in processes such as irrigation, water pumping, refrigeration, and greenhouse ventilation, among others. Currently, much of the energy used in the sector comes from the electricity grid, which directly affects the carbon footprint of agricultural production.
Chile now generates more than 60% of its electricity from renewable sources (National Electricity Coordinator, 2024), and that figure is expected to reach 80% by 2030. This progress ensures the competitiveness of agricultural exports in markets that increasingly demand a lower environmental footprint in production processes.
Additionally, energy price volatility (MundoAgro, 2023) has accelerated the need for direct adoption of non-conventional renewable energy (NCRE) in the agriculture sector.
In fact, lower technology costs and growing environmental requirements from international markets have driven the adoption of clean technologies, most notably solar power systems for self-consumption on agricultural properties.
For example, through programs implemented by Chilean Economic Development Agency CORFO, many fruit and wine producers have adopted local generation systems for self-consumption, covering a significant portion of their energy needs.
While electrification of irrigation, pumping, and cooling systems is a key step, there is still room for action in complementary stages of the value chain, which may not necessarily be decarbonized through electrification.
These areas can also reduce emissions of other greenhouse gases, such as methane, which is directly associated with agricultural processes, especially livestock.
Foreign investment opportunities for a sustainable agribusiness industry in Chile
Chile offers a favorable environment for foreign investment in clean technologies applicable to the agribusiness sector. Below are three clear areas of opportunity for new or expanded investment.
1. Biodigesters and biogas
International experience has shown that biodigesters in agribusiness are an effective solution for generating renewable energy and reducing the sector’s environmental impact.
Countries such as Germany, Sweden, the Netherlands, and the United States have led the implementation and expansion of this technology in agricultural production, reducing reliance on fossil fuels and promoting the circular economy.
Sectors such as dairy, fruit, and wine production have obtained significant benefits by incorporating biodigesters into their processes, optimizing waste management and reducing emissions.
In particular, biogas and biomass are sustainable alternatives for food processing and storage, which have historically relied on fossil fuels.
Studies such as Benavides et al. (2013) have shown that biodigesters convert slurry and agribusiness waste into renewable energy, while also contributing to methane emission reductions.
Similarly, emissions from transportation and logistics, which are significant in the agribusiness sector, can be mitigated through the use of biogas and other biofuels as clean energy sources.
2. Agrivoltaics
Agrivoltaics offer an innovative solution that enables the coexistence of two strategic sectors in Chile: renewable energy generation and agribusiness.
This technology integrates agricultural crops with solar power plants on the same land, optimizing land use and increasing climate resilience. Implementation of agrivoltaics goes beyond self-consumption on a single site, and also contributes to large-scale energy generation.
In addition to the impact on energy generation, installing solar panels above fruit crops offers additional benefits, especially for crops like cherries.
Globally, countries such as France, Germany, Japan, and the United States have led the adoption of agrivoltaics, developing large-scale projects that have demonstrated improvements in water and production efficiency. In Chile, various pilot projects have shown promise, with benefits including:
- 29% more soil moisture beneath the solar panels, which reduces evaporation and improves water use efficiency.
- Local energy generation: in blueberry orchards alone, the theoretical potential of agrivoltaics is estimated at 13.4 GWp, equivalent to 22% of Chile’s national electricity generation in 2023.
3. Floating solar panels
Floating solar panels combine renewable energy generation with water-use efficiency by being installed on irrigation ponds and reservoirs. This technology enables clean electricity generation without occupying agricultural land and reduces water evaporation, optimizing water use in agriculture.
One key initiative in Chile, implemented by the National Irrigation Commission (CNR) and the Ministry of Energy, promotes the implementation of these systems in irritation infrastructure with public funding provided through the Irrigation Law.
Globally, countries such as Japan, the Netherlands, and Spain have led the way in adopting this technology with excellent results. In Chile, several projects have already had a tangible impact.
One example is the Verfruit project in the O’Higgins Region, where a floating solar panel system supplies around 40% of the site’s energy demand.
A strategic destination for investment in sustainable technologies for the agribusiness sector
The transformation of Chile’s agribusiness sector toward sustainable production models not only addresses global demand for food with a lower carbon footprint, but also strengthens the sector’s competitiveness and reduces operating costs.
Chile offers a highly attractive investment environment for foreign companies looking to engage in the agribusiness sector’s energy transition.
At InvestChile, we facilitate access to business opportunities in renewable energy for agriculture and provide support to investors at every stage of project development.
With a growing market, government incentives, and regulatory stability, Chile is positioning itself as a strategic destination for energy solutions in agribusiness, laying the foundations for a more resilient and sustainable future.
To find out more about investment opportunities in Chile, visit our website or contact us.
