CEN Warns of 566 GWh Deficit for August as Chile Weighs Rationing Decree

Chile's National Electric Coordinator (CEN) projected a supply deficit of 566 gigawatt-hours (GWh) for August 2026, according to its supplementary report published on July 7. The Ministry of Energy is weighing the issuance of a preventive electricity rationing decree, a measure that has not been activated since the megadrought of 2021-2023.

The alert stems from the convergence of a drought that made June 2026 the third driest month in Santiago in 57 years, the shutdown of thermal plants including Campiche, and restrictions on reservoirs at Lago Laja and Laguna del Maule. Daily diesel consumption for electricity generation surged from one thousand to six thousand cubic meters, straining supply logistics, according to BioBioChile. The situation has reignited debate over regional electricity integration: Chile, Peru, Argentina, and Bolivia have explored interconnection frameworks aimed at offsetting hydro deficits with neighboring countries' capacity. The last preventive rationing decree was in force from August 2021 to September 2023.

The decree does not trigger automatic power cuts. It grants the Ministry of Energy and CEN authority to alter the dispatch order, prioritize fuels such as natural gas and diesel, and hold reservoir water in reserve as a last resort, former minister Marcelo Tokman explained to The Clinic. Generators grouped under Generadoras de Chile formally requested that Minister Ximena Rincón issue the decree, while Acciona Energía proposed seven urgent measures to the National Energy Commission (CNE), including securing diesel reserves and accelerating the connection of new projects, according to Diario Financiero. Rincón confirmed meetings with generating companies beginning July 2 and is coordinating with the Ministry of Public Works on water reserve management.

CEN is monitoring a frontal weather system forecast between July 15 and 19, whose precipitation could ease pressure on the grid. If the decree is not activated in the coming days, attention will focus on hydro reservoir levels and natural gas supply through the second half of the year.

This article was drafted with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.