Neoliberal energy transitions: The renewable energy boom in the Chilean mining economy

Political-economic approaches are increasingly used in the study of low-carbon energy transitions. This article brings attention to two dimensions that have been less explored by this scholarship. First, research on the political economy of energy transitions, which has centered on the fossil fuel industry and to a lesser degree on the residential sector, has not sufficiently considered the role that industrial energy users play in resisting and in shaping energy transitions. Second, empirical analyses have focused on the limitations to a transition toward low-carbon energy systems that neoliberal forms of energy governance generate, thereby leaving unexplored cases in which neoliberal restructurings enacted by the state accelerate energy transitions. By analyzing the relationship between the recent boom in renewables energy investments in Chile and the energy consumption practices of the copper mining industry, I show the importance that changes in energy systems can have in the reproduction of specific regimes of accumulation. Drawing on insights from the political economy of energy and the scholarship on the role of socio-natural reconfigurations in addressing capitalist crisis tendencies, I argue that the recent changes in the energy sector in Chile can be understood as a socioecological fix to alleviate the threatened accumulation process of its mining economy. I describe the new energy policy implemented in Chile to show how the neoliberal model for promoting renewable energies and the increased financialization of the renewable energy sector, while successful in quickly stimulating a utility-scale renewable energy sector, has also created socioecological impacts and uncertainties in energy forecasts.