On June 10, 2026, the Office of the Comptroller General of the Republic completed its toma de razón (mandatory legality review), subject to comments, of Supreme Decree No. 1 issued by the Ministry of Energy. The decree introduces significant amendments to Supreme Decree No. 88 of 2019, primarily aimed at incorporating energy storage systems into the regulatory framework governing Small-Scale Generation and/or Storage Facilities. (MGPE), in accordance with Law No. 21,505.
The reform not only broadens the scope of the regulation but also redesigns the stabilized pricing mechanism, introducing the concept of the "MEP Balance" (Saldo MEP) and a system for settling price differences valued at the Basic Energy Price. These amendments are intended to provide more efficient investment signals, ensure neutrality in balancing compensation mechanisms, and strengthen the monitoring and operational control powers of both the National Electric Coordinator and distribution companies in situations involving network congestion.
Key Amendments
- Integration of Energy Storage (MGPE) The former terminology has been replaced with "Small-Scale Generation and/or Energy Storage Facilities" (MGPE). Energy storage systems are now entitled either to sell electricity at the marginal cost or to participate in the stabilized price regime.
- New Stabilized Pricing Mechanism (MEP Balance) The stabilization mechanism will consist of valuing energy injections at the Basic Energy Price for each settlement period. On a monthly basis, the National Electric Coordinator will calculate the MEP Balance, representing the difference between the value of injections at the Basic Energy Price and the actual marginal cost.
- Settlement of Balances and Financial Guarantees Differences arising from the stabilization mechanism must be settled over 12 monthly installments during the following calendar year, adjusted for inflation based on the Consumer Price Index (CPI). To secure these payments, the National Electric Coordinator will require market participants to provide financial guarantees, taking into account the periods in which the largest deficits are expected.
- Treatment of Energy Withdrawals for Storage Energy withdrawals used to charge storage systems will be valued according to the pricing regime applicable to the relevant MGPE. Importantly, such withdrawals will not be subject to charges applicable to end-use customers.
- Amendments to Grid Connection Procedures The deadline for determining the admissibility of a Grid Connection Application has been extended from 10 to 15 days. Additional technical requirements have also been introduced for projects incorporating energy storage, including the specification of: • scheduled injection time blocks; and • withdrawal capacity.
Additional Changes with Significant Implications for the PMGD Industry
- Energy Storage The amended regulations establish a simplified procedure allowing existing projects to incorporate energy storage systems. This creates an opportunity to optimize energy injections during higher-value time blocks while avoiding transmission charges associated with end-use customers.
- Congestion Management The National Electric Coordinator is expressly empowered to limit energy injections or storage charging withdrawals in the event of actual or anticipated network congestion, applying economic efficiency criteria.
- Greater Legal Certainty for Self-Producers The amendments clarify that withdrawals by MGPE facilities operating as self-producers will be valued under the same pricing regime applicable to customers connected at the relevant connection point. This arrangement must be expressly provided for in the applicable grid connection agreement.
- Next Steps and Key Dates
- Entry into Force The amendments to Title II of the regulations (Grid Connection Procedures) will enter into force 30 calendar days after publication of the decree in the Official Gazette.
- Transitional Pricing Regime Projects that elected to participate in the previous stabilized pricing regime before the entry into force of this decree will continue to be governed by those rules until July 2034, unless they modify their connection or operating conditions. For further information regarding these developments, please contact Francisco López (flopez@jdf.cl) or Eduardo Silva (esilva@jdf.cl).
