CHILE Law and Practice Contributed by: Ignacio Errazquin, Adolfo Romero and Florencia Anguita, CMS Carey & Allende
together with the forthcoming Sectoral Permits Law implementation, mark a decisive shift towards a more predictable and co-ordinated framework for complex energy infrastructure transactions in Chile. 6.2 Key Developments in Renewable Energy and Cutting Emissions The standout legal development is the formal inte- gration of energy storage solutions into Chile’s power sector planning and operation by means of the issu- ance of dedicated regulations that address the techni- cal conditions for the energy storage solutions’ opera- tion and enable the connection of these systems to the national grid. Together, these measures recognise standalone and hybrid BESS as system resources, enabling multi-revenue stacks (adequacy/capacity, ancillary services, congestion relief) and improving bankability for solar-plus-storage platforms. The Chilean government’s plan is to reach net-zero status by 2050 by fostering policies that enhance the use of non-renewables and by moving forwards with an ongoing phased decarbonisation plan. This year the government announced a new bill offering tax incentives aimed at supporting green hydrogen devel- opment, as well as a bill to facilitate investments in decarbonisation. Also, the Chilean government plans to unblock a pipeline of approximately 100 green hydrogen projects awaiting regulatory approval. 7. Due Diligence/Data Privacy 7.1 Energy and Infrastructure Company Due Diligence The board of directors may authorise the delivery of non-public information to a potential acquirer if it serves the company’s corporate interest and appro- priate confidentiality measures are in place. In practice, Chilean boards often require the counter- party to sign a non-disclosure agreement (NDA) that expressly covers non-public information, thereby pro- hibiting insider trading and misuse of material non- public information. If multiple bidders are involved, the board must ensure equal access to information, so as to avoid breaching the principle of market transpar- ency.
The scope of due diligence for energy and infrastruc- ture companies typically covers: • concession titles and operational permits (CNE, CEN, SEC, MOP, SEA); • power purchase agreements and interconnection agreements; • environmental compliance and enforcement his- tory; • land rights; and • tax and financing structures. Sensitive grid, security or pricing data subject to sectoral secrecy obligations must be redacted or anonymised. 7.2 Restrictions Legal restrictions derive mainly from securities’ laws, which bar the disclosure or use of material non-public information except where necessary to advance the transaction and under strict confidentiality. Sector- specific statutes further restrict disclosure of system operation data or environmental impact information until formally approved by the competent authority. Where the target operates critical infrastructure, the Ministry of Energy, the CEN, or the SEC may impose data security safeguards limiting the transfer of real- time dispatch or control-room data. Legal restrictions also arise under Decree-Law No 211, which limits the exchange of commercially sen- sitive information during due diligence, particularly where the parties are actual or potential competitors. In those cases, the Fiscalía Nacional Económica typi- cally suggests clean team protocols or data redaction to prevent co-ordination risks. If the due diligence involves personal data (eg, employ- ee records, landowner/community agreements, stake- holder mapping), processing must comply with Law No 19,628 (currently in force) and the forthcoming Law No 21,648 (the “new Personal Data Protection Law”), which will introduce stricter consent, purpose limita- tion and security requirements, enhanced data subject rights, and significantly higher sanctions once it enters into force following the creation and operationalisa- tion of the Personal Data Protection Agency ( Agencia
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