China Eyes Chile’s Grid in High-Voltage Deal

China Southern Power Grid in talks for Transelec stake, a deal that could help modernize Chile’s grid and boost renewables

22 Sep 2025

China Southern Power Grid is in advanced talks with Patria Investments to acquire control of Transelec, Chile’s largest electricity transmission company, in what could become one of Latin America’s most significant utility transactions this year.

Transelec operates more than 10,000km of high-voltage lines and provides transmission services to a large share of Chile’s population. The grid has struggled with congestion and inefficiencies as the country pursues ambitious renewable energy targets. A change of control could open the way for network upgrades and expansion, improving the ability of renewable projects to supply cities and industries.

For the Chinese utility, the deal would expand its Latin American presence and offer stable returns from regulated assets. Patria, a Brazil-based infrastructure investor, has highlighted its interest in projects considered critical for national economies. Together, the partners could channel capital into new transmission lines and digital systems designed to raise efficiency and strengthen resilience.

Industry analysts said the transaction would carry wider implications. “Whoever controls Transelec will help set the pace of Chile’s energy transition,” one observer noted. Competitors including Colombia’s ISA and France’s Engie may face pressure to increase investment in response.

Any acquisition would be subject to regulatory review. Chile’s competition authority, the Fiscalía Nacional Económica, is expected to examine potential effects on employment, cybersecurity and consumer protection. Oversight has grown in recent years following disputes over tariffs and concessions.

Proponents argue that international capital, paired with domestic regulatory controls, could help unlock the long-term investment needed to modernize Chile’s grid. Success in negotiations would also signal growing global involvement in Latin American infrastructure, pointing to a more reliable power system better equipped to support renewable expansion.