Law No. 20.257 on Non-Conventional Renewable Energies Chile 2008

Name of policy Law No. 20.257 on Non-Conventional Renewable Energies
Jurisdiction Country
Supranational region
Country Chile
Region South America


Subnational region or state
City or local
Policy objective
  • Mitigation
  • Energy security
Type of policy instrument
  • Regulatory Instruments
    • Obligation schemes
      • Other mandatory requirements
      Sector name
      • Electricity and heat
        • Renewables
      Policy description Legislative

      This quota came into force at the start of 2010, and until 2014 will require 5% of electricity to come from non-conventional renewable energy sources. Starting from 2015, the obligation will be increased by 0.5% annually, reaching 10% in 2024.

      The law will apply to all agreements executed as of 31 May 2007 (new agreements, renewals, extensions, or similar arrangements). Non-compliance with the law will result in fines of 0.4 UTM (Monthly Tax Unit), equivalent to approximately CLP 16,179 per MW not obtained from NCRE sources per year. The obligation will last for 25 years (2010-2034). Hydro is considered as a non-conventional source if the capacity is below 20 MW. However, for a plant producing between 20 and 40 MW, a portion of the energy can be considered non-conventional based on a decreasing function, with the non-conventional energy content of a 40 MW plant equal to zero. On 14 October 2013, the law was reformed and mandates that electric utilities with more than 200MW operational capacity should generate 20% of electricity from renewable sources by 2025.

      Policy type
      • Renewables1
      Policy stringency
      Implementation state Implemented
      Date of decision 2008
      Start date of implementation
      End date of implementation
      High impact No
      Impact indicator


      Source or references http://www.iea.org/policiesandmeasures/pams/chile

      http://antiguo.minenergia.cl/minwww/opencms/08_Normativas/02_energias/renovables.html

      Supports policies
      Is supported by policies
      Comments (background and assessment)
      Status Final

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