Copenhagen Infrastructure Partners (CIP) has reached final investment decision on a 220MW/1,100MWh battery energy storage system (BESS) project in Antofagasta, Chile.
Construction of the standalone project is expected to start in the first quarter of 2025 and powered as soon as Q1 2026, and will be one of the first projects of its kind to reach commercial operations in Chile, according to CIP.
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As frequent readers of Energy-storage.news might know, the majority of BESS projects built and in construction in Chile are paired with a solar PV project. Although a standalone project, the Arena BESS facility is still located in the northern region of Chile, where most of the solar PV capacity is located, due to its high irradiation levels.
Its proximity to solar resources and being adjacent to existing transmission infrastructure, will allow the project to provide balancing services and shift excess solar power generation during the day to supply renewable energy power during the night hours.
“We are excited to take this important step in deploying CIP’s first energy storage project in Chile, which will be one of the largest in the region. Through our Growth Markets Fund II, this cornerstone investment supports our long-term investment strategy in Latin America,” said Ole Kjems Sørensen, partner at CIP.
“It demonstrates CIP’s industrial approach in identifying a market need and delivering a large-scale project with a robust contractual framework, while also securing attractive risk-adjusted returns to our investors.”
DNV provides support to Atlas Renewable Energy standalone 800MWh BESS project in Chile
In related standalone BESS news, assurance provider and energy expert company DNV has supported renewables developer Atlas Renewable Energy to secure US$289 million in financing for a standalone 800MWh BESS project in Chile.
The development of the ‘BESS del Desierto’ project will be funded through senior loans and credit lines provided by financial institutions BNP Paribas and Crédit Agricole CIB. Similar to the CIP project, the BESS del Desierto will be located in Antofagasta, north of Chile. It will be located nearby Atlas’ 230MW solar PV project, although the projects will not be connected to each other, with the 4-hour duration BESS project working as an “independent and autonomous solution” designed to distribute power to the Chilean grid.
DNV provided support in the financing process by conducting due diligence on market conditions and assessing the risks of a long-term energy purchase agreement, which Atlas secured earlier this year with Chilean forestry and energy company COPEC.
Marian van den Berg, Senior Project Consultant, Energy Systems at DNV, said: “This project highlights our expertise in market due diligence for energy storage and marks a key development for Chile’s energy market. Our rigorous market analysis and risk assessment were pivotal in securing investor confidence, demonstrating that standalone battery storage is a sound investment proposition in Latin America.”
Energy storage markets in Latin America and the Caribbean will be the focus of a free Energy-Storage.news webinar today. Sponsored by Trina Storage and with the participation of special guest DNV, Unlocking the Power of BESS in Latin America and the Caribbean: The Critical Role of Local Partnerships, will take place at 11am Chile Summer Time this morning. Registration is free and the session will be available to view from our On-Demand Webinars section a few days after broadcast.
