Chile’s Nuclear Edge: Powering a Resilient, Zero-Carbon Future with SMRs and Renewables
Chile stands at the forefront of Latin America’s clean energy transition, celebrated for its remarkable strides in solar, wind, and ambitious climate commitments. Yet even with these successes, a crucial question remains: how can Chile ensure round-the-clock, reliable, zero-carbon electricity as coal plants retire and new industrial demands grow? Below we examine why nuclear power represents the essential missing link in Chile’s energy strategy—offering the dispatchable, low-carbon backbone needed to secure a fully sustainable and resilient future.
Chile’s Rapid Energy Transformation
Over the past decade, Chile has rapidly scaled up its renewable energy capacity, positioning itself as a regional leader in clean electricity. By 2024 roughly 70% of Chile’s electricity came from low-carbon sources – a dramatic rise from under 50% just five years earlier. Remarkably, solar and wind alone delivered about 33% of generation last year. This leap reflects stable, long-term policies (for example the “20/25” renewable mandate) and Chile’s exceptional solar and wind resources. In fact, Chile aims to secure at least 70% renewables by 2030 – a target it effectively met ahead of schedule. In practice, the country has connected record amounts of photovoltaic and wind capacity and is investing in new battery storage and transmission lines to handle the build-out.
Challenges of an Intermittent Renewable Grid
This renewable boom, however, brings new challenges. The very intermittency of wind and solar now strains system reliability. In 2023 Chile experienced 2.4 TWh of wind/solar curtailment (energy wasted) due to surplus generation and congestion. Authorities are deploying energy storage – about 390 MW installed and 500 MW under construction as of 2024 - but much more will be needed. At the same time, Chile is retiring its coal plants on a fast track: since 2019 over 1.2 GW of coal capacity (from 11 plants) has already been shuttered, and policy calls for the rest to exit by 2040. This removes the conventional baseload that historically kept the lights on. Compounding the puzzle, Chile is also betting on a green hydrogen revolution. Its strategy to become a top three hydrogen exporter by 2040 will require on the order of 25 GW of electrolyzers – essentially inflexible, 24/7 demand for zero-carbon power. In sum, three powerful trends converge: soaring variable renewables, disappearing coal baseload, and massive new hydrogen load. The result is a structural capacity gap in Chile’s energy matrix – one that the current mix (wind/solar, drought‑vulnerable hydro, and batteries) cannot easily close on its own.
The Role of Nuclear Power in Closing the Capacity Gap
In this context, nuclear power emerges as the only mature technology capable of filling the gap. Nuclear plants uniquely provide large-scale, continuous, zero-carbon electricity. Today roughly 440 nuclear reactors operate worldwide (≈400 GW total capacity), supplying about 9–10% of global electricity. Together with hydropower, they still form the backbone of low-carbon generation (about 75% of the world’s clean power). Over the past 50 years nuclear energy has avoided on the order of 60 gigatonnes of CO₂ – nearly two years of global emissions. In advanced economies, nuclear is often the single largest source of zero-carbon power (about 18% of generation in OECD countries). Crucially, nuclear plants run with capacity factors above 90%, operating day and night regardless of weather. This contrasts sharply with solar and wind (often 20–40%), and means nuclear can reliably firm up an all-renewables system. Indeed, the International Energy Agency has highlighted that phasing out nuclear fleets would force far more spending on backup and transmission; one analysis estimated $1.6 trillion of extra investment in advanced economies through 2040 would be needed if nuclear were lost. In short, nuclear power offers firm, affordable clean energy that complements wind and solar. It avoids the need for giant overbuilds of renewables or fossil backups and helps stabilize electricity prices. For Chile’s ambitious grid – and its climate goals – nuclear provides precisely the missing, dispatchable piece.
Chile’s Existing Nuclear Capacity and Expertise
Importantly, Chile is not a blank slate when it comes to nuclear. The state-owned Chilean Nuclear Energy Commission (CCHEN) has been active since 1965, giving Chile decades of nuclear technical expertise. CCHEN operates two research reactors: RECH-1 (a 5 MWt pool reactor at La Reina in Santiago) and RECH-2 (2 MWt at Lo Aguirre, currently in shutdown). It also runs a fuel-element fabrication plant and a uranium conversion laboratory. These facilities primarily produce medical and industrial radioisotopes – for example, RECH-1 annually generates dozens of isotopes used for diagnostics and treatment. The work at CCHEN means Chile already has trained nuclear scientists, engineers, and safety professionals, as well as practical experience in reactor physics and radioactive materials. In effect, a pool of local human capital and know-how is ready to be leveraged.
Legal and Regulatory Framework for Nuclear Energy
Chile’s legal and regulatory framework for nuclear activities is likewise well established. The 1984 Nuclear Safety Law (No. 18,302) lays out the licensing requirements for any nuclear facility – covering siting, construction, commissioning and decommissioning – and defines the roles of regulatory authorities. A series of decrees further specify radiation protection, material transport, and security standards. To date, this framework has governed research reactors and radioactive sources effectively. Chile’s most recent national reports to the IAEA note that these regulations will need updates to meet modern reactor standards, and the country has even begun reforms. For example, an IAEA peer review in 2019 recommended that CCHEN’s promotional and regulatory functions be clearly separated to avoid conflicts of interest. Chile has already drafted legislation to create an independent nuclear regulator. These proactive steps indicate Chile’s commitment to meeting international best practices if it chooses to pursue nuclear power.
Industrial and Mining Opportunities for Nuclear Deployment
The commercial entry path for nuclear in Chile is likely through targeted industrial and mining projects, not an immediate push for 10s of gigawatts to the national grid. Mining is Chile’s economic cornerstone (accounting for ~13.6% of GDP and 58% of exports). The country is the world’s #1 copper producer (~24% of global output) and a leading lithium exporter (~30% of global lithium). Mining operations (mostly in the north) consume vast amounts of power and must run constantly, often off-grid. Critically, the mining sector has committed to carbon neutrality by 2040 – a decade ahead of Chile’s national target – and is already integrating renewables and desalination. One industry study projects that by 2023 about 63% of mining electricity will be from clean sources. These facts set the stage: mines need reliable 24/7 power and water, and they are willing to pay for decarbonized energy. Small modular reactors (SMRs) are especially well-suited here. An SMR can be co-located at a mine site, providing steady electricity plus high-temperature heat for seawater desalination. Such an on-site plant would slash the mine’s dependence on diesel and gas generators, cut long transmission lines, and secure water – all while cutting carbon emissions. Because mining clients typically sign long-term power purchase agreements, a mining-tied nuclear project would have an anchor customer and bankable revenue, smoothing financing. In this way, Chile’s export industries could be decarbonized sustainably, creating local jobs and innovation hubs, and demonstrating nuclear’s value in concrete terms.
Nuclear as a Strategic Enabler for Chile’s Energy Goals
Nuclear power is not a competitor to Chile’s renewable energy vision but a critical partner in achieving it. Its role can be considered in three essential areas:
Nuclear as Guarantor of Renewable Success: Emphasize that firm nuclear power is needed to stabilize the grid and fully harness Chile’s solar and wind resources. Dispatchable nuclear capacity prevents curtailment and blackout risk, ensuring that every megawatt of clean energy can be utilized.
Nuclear as Hydrogen Enabler: Stress that Chile’s green hydrogen ambitions (top 3 exporter by 2040) require abundant, 24/7 low-carbon electricity. Only nuclear can supply that at scale without resorting to fossil fallback. A continuous nuclear baseload would allow electrolyzers to run at high capacity, keeping hydrogen costs competitive.
Nuclear for Industry: Highlight that SMRs powering remote mines and industrial zones offer immediate economic benefits. A localized nuclear plant decarbonizes production, provides desalinated water, and spurs regional development – all while reducing transmission losses and grid congestion.
By framing nuclear power in these terms – not as a threat to renewables but as the enabler of Chile’s energy future – public and political acceptance can grow. In the end, Chile’s choices will determine its ability to maintain a reliable 100% clean grid. The evidence shows that pairing Chile’s world‑class solar and wind with firm nuclear power would create a resilient, low-cost, low-emission system. Nuclear energy is the proven technology that fills the firm-capacity gap left by retiring coal, complements variable renewables, and underpins Chile’s hydrogen and industrial transition. In this sense, nuclear is not a divergence from the national path but its most strategic convergence point. Harnessing every viable solution – including nuclear – will allow Chile to meet its national goals and stand as a model for sustainable leadership worldwide.
