CHILE Law and Practice Contributed by: Ignacio Errazquin, Adolfo Romero and Florencia Anguita, CMS Carey & Allende
CMS Carey & Allende Avenida Costanera Sur 2730 9th Floor Parque Titanium Las Condes 7550000 Santiago Chile Tel: +56 2 2485 2000 Email: contacto@cms-ca.com Web: www.cms.law/es/chl/
1. Market Trends 1.1 Energy and Infrastructure M&A Market Chile’s energy and infrastructure M&A market has experienced a slowdown in transaction volume com- pared to 12 months ago − although there is a backlog of projects waiting for their environmental approvals that still reflect relevant investment commitments. While the number of transactions has decreased com- pared to the previous year, deal sizes have increased, which is consistent with an ongoing consolidation trend. Global geopolitical tensions such as the wars in Ukraine and Gaza, as well as trade turmoil, have in fact impacted logistics and material costs − weighing on early-stage valuations and greenfield investment appetite. This is joined by tighter financial conditions, with high interest rates and more selective lending standards affecting leveraged transactions. Moreo- ver, the upcoming presidential and congressional elections (November 2025) are also accountable for adding a degree of cautiousness to investors, who are assessing how the policy and regulatory landscape might change owing to the election’s outcome. Despite this, interest in operational and brownfield renewable assets remains robust, especially among international investors seeking established platforms with proven asset management capabilities. Although generally aligned with global trends, Chile’s deal activity is slightly weaker than global activity.
1.2 Energy and Infrastructure Trends The past year was defined by the consolidation of hybrid (photovoltaic (PV) system integrated with a bat- tery energy storage system (BESS) (“PV + BESS”)) projects and the restructuring of solar and wind port- folios impacted by curtailment and negative spot prices. At the same time, the small and medium-scale dis- tributed generation ( pequeños medios de generación distribuida , or PMGD) market (ie, small-scale gen- eration projects with generation capacity lower than 9MW) has been significantly affected by regulatory discussions around the stabilised price regime that was originally conceived to provide revenue certainty to these kinds of projects, but which eventually cre- ated considerable uncertainty regarding the long- term viability of new projects under this framework. This uncertainty has dampened investor confidence and prompted a reassessment of financial models dependent on PMGD pricing. Across the sector, companies have adopted a more conservative approach, emphasising enhanced ESG due diligence, particularly regarding social and com- munity matters, and shifting toward co-development or joint-investment models rather than full acqui- sitions. Meanwhile, energy storage, transmission capacity, and system flexibility have emerged as top strategic priorities for both public and private players.
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