At the Future Energy Summit (FES) Chile on November 27, 2025, a candid conversation unfolded among the principal investors and executives shaping the Southern Cone’s renewable-energy future. The message was clear and urgent: the region’s ability to attract and retain capital for clean energy projects now hinges on reliable regulation, streamlined permitting, and economic pragmatism—far more than on environmental ambition alone.
Juan Villavicencio, CEO of ENGIE Chile, set the tone early by warning that global financial resources are no longer a given for any single market. "Investments are global. If Chile does not provide the necessary conditions, that capital will move to countries such as Brazil or the United States," he cautioned, as reported by FES Chile. This sentiment was echoed by Gianluca Palumbo, CEO of Enel Chile, who noted that the Southern Cone is entering a critical phase: "Some countries are more attractive simply because they provide consistent and foreseeable rules, enabling long-term investment planning."
Indeed, the stakes are high and the window for action is narrowing. While the Southern Cone boasts impressive natural resources—sun, wind, and, in some places, abundant hydropower—these advantages alone can’t guarantee continued investment. The summit’s more than 400 attendees, representing renewable-energy and energy-storage sectors, heard a chorus of concerns about regulatory lag and institutional competitiveness.
One pressing issue raised was the delayed development of battery energy storage systems (BESS). Despite their pivotal role in integrating intermittent sources like solar PV and wind, these technologies still lack the regulatory incentives needed for large-scale deployment. Joan Leal, CEO of EDF Power Solutions Chile, didn’t mince words: "If a regulatory framework for storage is not defined soon, projects will not progress because the value they provide to the grid is not recognised." This fundamental disconnect between technological progress and regulatory readiness threatens to stall the energy transition just as momentum is building.
Jaime Toledo, CEO for South America at Acciona Energía, highlighted another stumbling block: the outdated tariff model. "We need new rules for how energy is priced; otherwise, the energy transition will begin to slow," he warned, underscoring how legacy pricing structures fail to reflect the rapidly evolving mix of generation and storage technologies now underpinning the grid. Without a modernized approach, future renewable deployment could be left in the lurch.
But the challenges aren’t only technical or regulatory. The summit’s panelists all pointed out that global financial conditions have become notably tougher. Higher interest rates and tighter banking requirements have raised the bar for project financing, making institutional trust and regulatory clarity more important than ever. As José Ignacio Escobar, CEO of Colbún, put it, "We must align as an industry, speak with the authorities and Parliament, and define the urgent pathway we require." He called for stronger institutional coordination and a unified industry position to advance urgently needed structural reforms.
These concerns aren’t theoretical. They’re already playing out in the region, as capital seeks the safest and most predictable returns. According to FES Chile, natural resource potential alone is now insufficient; countries must offer regulatory coherence and long-term clarity to stay competitive. The panelists agreed that cooperation between public and private sectors is crucial. Villavicencio advocated for formal spaces for strategic dialogue, while Palumbo emphasized the need for consistent policy instruments to support long-term goals. "Investment decisions are taken years in advance. We cannot operate with uncertainty about how the system will function by 2030," Palumbo stressed.
Against this backdrop, Uruguay’s remarkable success story offers both inspiration and a cautionary tale. As reported by Forbes and the Good News Network, Uruguay has managed to virtually eliminate fossil fuel use and transition almost entirely to renewables—without making environmental goals the central driver. Instead, the country prioritized economics, focusing on saving money, reducing costs, and creating jobs. Ramon Méndez Galain, Uruguay’s former energy minister, who oversaw the transition, explained, "Climate policies fail when they are disconnected from economics. The transition works when it saves money and creates jobs."
Uruguay, a nation of 3.5 million with a GDP of $80 billion, had long relied on imported coal, oil, and natural gas to supplement its strained hydropower capacity. By the 2010s, blackouts were becoming worryingly common, and it was clear that dependence on fossil fuel imports was unsustainable. Méndez Galain, a particle physicist by training, took charge of the energy ministry and implemented a plan that would survive through five administrations—a rare feat in global energy politics.
The strategy was simple but radical: remove subsidies and biases favoring fossil fuels, then open utility contracts to greater competition and longer-term periods. Contracts were awarded not based on emissions reductions, but on how low the installation and provision costs could go. This approach attracted around $6 billion in renewable investments, as companies vied for long-term contracts that promised predictable returns. The influx of capital created about 50,000 jobs in engineering and energy sectors, representing 3% of the national workforce, and cut power costs by 20%.
Uruguay’s energy mix is a masterclass in pragmatism. Almost half of its electricity comes from hydropower, 15% from biomass, with solar acting as a gap filler. During periods when hydropower is strained, 1-3% of the supply comes from natural gas. The environmental benefits—99% clean energy year-round—were a happy byproduct of policies rooted in economic reality. "No nation can ignore economic forces and laws when planning its energy mix, and if any administrations were looking to copy the 'Uruguay model,' the first step is get the economics right. The environmental benefits will come as an afterthought," Méndez Galain told Forbes.
For the Southern Cone, Uruguay’s experience is a compelling case study. It demonstrates that regulatory certainty, competitive pricing, and a focus on economic incentives can unlock the vast potential of renewables—even in countries without world-beating wind or solar resources. The lesson is clear: natural advantages are important, but they must be matched by institutional trust and a regulatory environment that welcomes innovation and long-term investment.
As the FES Chile summit wrapped up, the consensus was that the region’s clean-energy future depends as much on policy and planning as on technology or resources. The CEOs called for a shared vision, greater public-private collaboration, and regulatory frameworks that keep pace with a rapidly changing industry. In this new era of global competition for clean energy capital, those who adapt fastest and most effectively will set the pace for the rest—turning ambition into reality and, perhaps, lighting the way for others to follow.
