Chile Sineng Electric solar container energy storage system

Why is Chile pursuing energy storage in Antofagasta?

Chilean president Gabriel Boric (centre) at the inauguration of an energy storage plant in the northern region of Antofagasta in April 2024. Chile has strong conditions for wind and solar energy, and is pursuing storage to help overcome intermittent supply (Image: Ximena Navarro / Dirección de Prensa, Presidencia de la República de Chile)

Where are Chile's battery energy storage facilities located?

Chile’s first battery energy storage projects were commissioned in 2009, and all but two of its 16 administrative regions have facilities in operation, under construction or in the planning stage. The greatest installed capacity is found in the northern regions of Antofagasta and Tarapacá, the country’s solar powerhouses.

Will Chile be able to develop energy storage projects in 2024?

In 2022, Chile passed an energy storage and electromobility bill, which made stand-alone storage projects profitable, but the market is still expecting new rules on capacity payment for storage projects, which are to be approved in 2024. Chile has also put in place an auction procedure to award public land for the development of BESS projects.

What kind of energy does Chile use?

Chile has the potential to run exclusively on renewable generation, with an estimated energy mix of 46% solar, 31% wind, 12% hydroelectric, and 8% flexible natural gas power plants, as well as 23% of battery storage capacity. The remaining 2% is split between biomass, geothermal, and other less common energy sources.