Peru Proposes Electricity Grid Link With Chile
The proposed 1,000 MW transmission project aims to share energy resources and curb power curtailment between the two nations.
Updated on Oct. 21, 2026 in Utilities
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Peru has proposed resuming talks for a massive 1,000 MW electricity interconnection with Chile. The $550 million project aims to facilitate bidirectional energy exchanges to balance surplus renewables in Chile with energy production in Peru.
Why it matters
The interconnection would provide a critical outlet for Chile's excess solar and wind power while utilizing Peru's natural gas and hydropower. By integrating these distinct energy profiles, the project could generate average annual economic benefits of $170 million.
The proposed 500 kV transmission line connecting Montalvo, Peru, to Kimal, Chile, requires an estimated investment of $550 million. A 2025 study projects annual bidirectional energy flows could reach between 3,600 GWh and 5,700 GWh.
The players
EnorChile Transmission
This company is a key private sector participant in the development of electrical transmission infrastructure across the region.
The details
The project intends to link Peru's generation infrastructure with Chile's grid, allowing for more efficient management of regional renewable energy surpluses. Separately, EnorChile Transmission has moved forward with a $30 million, 22 km transmission project called Los Héroes-Parinacota, which includes a specialized converter substation to manage different grid frequencies.
Timeline
January to July 2026: Chile faced 2,680 GWh of solar and wind power curtailment.
First half of 2026: Peru solar generation reached 1,442 GWh, an 87% year-on-year increase.
Oct. 13, 2026: EnorChile submitted the environmental impact statement for its project.
Nov. 29, 2026: Peru and Chile are scheduled to discuss the interconnection at a binational meeting.
Market Landscape
The interconnection effort represents a strategic move toward regional energy integration that could consolidate market share for renewable energy developers. This development aligns with broader trends in cross-border infrastructure as nations seek to mitigate transmission constraints through collective grid management.
This project could stabilize energy costs by allowing for more efficient usage of existing power generation assets across national borders. Residents may eventually see improvements in grid reliability as excess renewable capacity is integrated more effectively rather than being curtailed.
The takeaway
The proposed link illustrates the increasing importance of cross-border grid cooperation to maximize the output of renewable energy sources. Such projects are essential for markets looking to reduce wasted energy and improve the stability of their national power systems.
What happens next
Government representatives from Peru and Chile are slated to hold a discussion regarding the proposed grid interconnection at the upcoming binational meeting on Nov. 29, 2026.
Further reading
For additional context on infrastructure development, visit the Utilities section.
Source note: This article includes information reported by pv magazine International.
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