Is Chile ready for a battery storage project?

Battery storage projects cannot come soon enough for Chile. While Chile has been at the forefront of renewable energy generation growth in Latin America for close to a decade, that growth has most recently undergone serious growing pains.

Is lithium ion battery storage available in Chile?

While many projects are under development, lithium - ion battery storage is still limited. According to data from Acera, the Chilean Renewable Energy Association, there are only 64MW of battery storage capacity currently active, representing 0.2% of national capacity.

How much battery storage capacity does Chile have?

According to data from Acera, the Chilean Renewable Energy Association, there are only 64MW of battery storage capacity currently active, representing 0.2% of national capacity. AES Andes, a subsidiary of U.S. company AES Corp. operates all 64MW at their Angamos and Los Andes substations.

How much does a battery cost in Chile?

In fact, batteries charged at nearly $0/MWh during the day in the sunny, northern desert regions of Chile, sell energy at night for over $100/MWh. Although projects such as Engie’s BESS Coya are already enjoying these large spreads, this capacity payment will partially de-risk Chile’s dependence on volatile, but still profitable, merchant revenues.

Are battery energy storage systems a viable alternative for Chilean power producers?

With transmission lines at overcapacity and permitting delays slowing the development of new grid infrastructure, battery energy storage systems (BESS) have surged as a profitable alternative for Chilean power producers.

Will capacity payments be applicable to energy storage systems in Chile?

Pursuant to Law 21,505, the Chilean Ministry of Energy has proposed to amend the regulations on capacity payments to allow for those payments to be applicable to energy storage systems.