Chile is rapidly moving to build more power generation capacity, with much of that effort focused on renewable energy resources and battery energy storage systems (BESS). The country as part of that ambition has a goal of producing at least 70% of its electricity from renewable energy by the end of the decade, a level it already reached in the past year. Chile’s current energy mix includes solar power, wind power, and hydropower, which all have more than a 20% share of annual generation. Ember, an energy think-tank, said renewables provided 70% of Chile’s electricity in 2024, with fossil fuel-based generation accounting for 30%. That compares to a 53% share for fossil fuels in 2020, when renewables accounted for about 47% of Chile’s power. Government officials have said they expect solar power will account for 46% of the country’s total installed generation capacity by 2060, with most of that solar located in the north of Chile, particularly in the Antofagasta region. That area is known for high irradiance and a more-favorable cost structure for renewable energy development, with the mining industry in particular dependent on solar power for much of its operations.
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1. The Quillagua solar-plus-storage installation, located in Chile’s Antofagasta region, is a 221-MW solar photovoltaic plant with 1.2 GWh of battery energy storage. Courtesy: ContourGlobal |
Solar power combined with battery energy storage is at the forefront of Chile’s recent generation growth. UK-headquartered ContourGlobal, a power generation group that develops and manages projects, and specializes in long-term power generation contracts and advanced power purchase agreements (PPAs), recently announced commissioning of the Quillagua plant (Figure 1) in Chile, a 221-MWp solar PV plant with a 1.2-GWh BESS. The project is located in Maria Elena municipality, in the Antofagasta region in Chile. It is expected to be one of the country’s largest solar and storage projects once fully operational. ContourGlobal said the Quillagua installation has 452,000 solar panels, 5,000 solar trackers, 267 battery storage modules, 44 transformation centers, and 90 inverters. The company said it will operate with a PPA and also send surplus power to the commercial market.
Antonio Cammisecra, Global CEO of ContourGlobal, said, “We are proud to begin operations at Quillagua months ahead of schedule, bringing the sun’s energy at night, and to share this moment with our partners, the community, and local institutions and authorities. This is key to stabilizing the grid, addressing excess daytime supply, and peak demand challenges. We are deeply committed to this country, and, beyond storage, we are also exploring opportunities in wind power, diversifying our technological approach to meet the dynamic energy needs of Chile.” ContourGlobal said the Quillagua project forms part of a larger development that also includes the Victor Jara solar plant in the Tarapacá region, which like Antofagasta is a desert and mining area. The 231-MWp Victor Jara project is coupled with 1.3 GWh of battery storage, and is expected online by year-end. Both projects were acquired by ContourGlobal from Grenergy at the end of last year in a transaction valued at more than $900 million.
David Ruiz de Andrés, CEO of Grenergy, said, “We have generated great value with this transaction, which represents just 23% of Oasis de Atacama in Chile. We continue to develop many other projects in the country with a storage-focused model that we want to replicate in other markets where we are present, such as the United States and Europe. We are determined to be a world reference in storage in the coming years. It has been a pleasure to close this agreement with ContourGlobal (KKR) and we hope it will be the first of many.”
California-based Nextracker, along with ENGIE Chile, in May announced an energy initiative called PV and BESS Libélula, which consists of a hybrid park of photovoltaic panels and energy storage batteries in Chile. The companies said the project will add 350 MW to the National Electric System in an area with some of the highest demand for power in the country. Nextracker said the park, located in the municipalities of Colina and Tiltil, north of Santiago, will have 245,560 solar panels capable of generating 151 MWp, and 208 lithium-ion battery containers with a five-hour discharge capacity, resulting in 199 MW. “The Libélula PV + BESS project represents a major milestone in our transformation plan and in our strategy to diversify and strengthen renewable generation. The integration of battery-based storage will allow us to more efficiently manage the energy produced, ensuring a more stable and resilient supply for the country,” said Rosaline Corinthien, CEO of ENGIE Chile. The new park represents an investment of more than $310 million. It is currently in its initial construction phase and is expected to enter commercial operation in the second half of next year.
“This project will optimize the use of locally generated renewable energy, strategically releasing it during peak demand times,” said Juan Villavicencio, managing director of Renewables and Batteries at ENGIE Chile. “Furthermore, our efficient and flexible energy management will help stabilize the electricity grid and reduce CO2 emissions, supporting Chile’s decarbonization goal.”
The project also includes construction of a substation and a high-voltage transmission line that would cover about 10 miles. The Libélula project will be ENGIE’s first hybrid PV + BESS facility to integrate decarbonized steel, as part of the company’s commitment to sustainable innovation. The installation includes 2,311 low-carbon NX Horizon solar trackers, reducing tracker-related carbon emissions by about 30% compared to conventional manufacturing methods. “Removing carbon from the solar supply chain requires innovation, transparency, and trusted partnerships,” said Yves Figuerola, senior vice president of Supply Chain at Nextracker. “This project is a testament to our supply chain execution and our commitment to delivering the highest-quality materials and products in the industry to our customers around the world. ENGIE’s leadership at Libélula sets a new standard for climate-conscious infrastructure in Latin America and beyond.”
Atlas Renewable Energy, a Miami, Florida–headquartered global renewable energy group, in April said it had inaugurated the BESS del Desierto Project in Chile, in partnership with Chilean energy giant COPEC-EMOAC. The project, located in the Antofagasta region, has installed capacity of 200 MW of solar power and 800 MWh of battery energy storage. “Looking ahead, you do not have to choose between sustainability and reliability,” said Carlos Barrera, co-founder and CEO of Atlas Renewable Energy. “As BESS del Desierto proves, we can have both. And Latin America, with its abundance of resources, with its ingenuity, is in a position to be a leader in this transformation globally.”
“BESS del Desierto is undoubtedly a milestone for Atlas, Chile, and for all of Latin America, but it is not unique in Atlas’ portfolio,” said Alfredo Solar, regional manager of Chile and the Southern Cone for Atlas Renewable Energy. “We have multiple megaprojects in various stages of development, all of them using energy storage systems. This demonstrates the leadership Atlas has cultivated in this space, and we are very proud to see the fruits of our efforts with BESS del Desierto.”
Atlas officials said they also are looking to install BESS projects in Brazil, Colombia, and Mexico. Atlas recently closed $510 million in financing for its Estepa project in Chile, a hybrid system with an installed solar capacity of 215 MW and two battery energy storage systems. The company said the Estepa installation is supported by two long-term PPAs signed with Codelco and Colbun, both major players in Chile’s mining and energy sector.
—Darrell Proctor is a senior editor for POWER.
