According to a report by Mining.com citing Bloomberg, Chile’s Atacama Desert region is rapidly emerging as one of the most important energy storage hubs in Latin America.
The region’s exceptional solar resources are attracting major investments in battery energy storage systems (BESS), allowing solar power generated during the day to be stored and supplied to the grid during nighttime hours.
ContourGlobal Launches Major Solar-Storage Project
The latest investment comes from ContourGlobal, an independent power producer backed by KKR.
On June 25, the company officially launched a solar generation and energy storage facility with an investment of nearly US$500 million.
The project is designed to store surplus daytime solar electricity and deliver power after sunset, helping improve grid reliability and maximize renewable energy utilization.
According to the company, the new battery storage system can provide a continuous 200 megawatts of electricity for approximately 6.5 hours, making it one of the longest-duration utility-scale battery storage projects in Latin America.
Storage Unlocks the Full Potential of Renewable Energy
Battery energy storage plays a critical role in addressing the intermittent nature of solar and wind generation.
Stored electricity can be dispatched when sunlight is unavailable or wind generation declines. Energy storage systems also help balance electricity supply and demand, reducing curtailment and improving grid efficiency.
James Lee Stancampiano, South America General Manager of ContourGlobal, stated that Chile offers particularly favorable conditions for renewable energy and storage investment due to:
Attractive regulatory frameworks
Growing electricity demand
Strong renewable resource potential
Expanding project pipeline
Increasing demand for clean energy
Long-Term Power Purchase Agreement Supports Investment
The project is backed by a 15-year nighttime electricity purchase agreement signed with Copec EMOAC, an energy marketing and renewable energy subsidiary of one of Chile’s largest industrial groups, Empresas Copec.
Long-term power purchase agreements provide stable revenue streams and improve the bankability of large-scale renewable energy projects.
Chile’s Storage Market Continues to Expand
According to Chile’s national grid operator, Coordinador Eléctrico Nacional (CEN), several major companies are actively developing battery storage projects throughout the country, including:
AES Andes
Engie Energía Chile
Enel Green Power Chile
In addition, Atlas Renewable Energy, supported by BlackRock’s Global Infrastructure Partners, secured approximately US$510 million last year for the Estepa hybrid solar and storage project, one of Chile’s largest renewable energy developments.
Atacama Desert Drives Storage Demand
Northern Chile possesses some of the highest solar irradiation levels in the world.
As solar generation capacity continues to grow, daytime electricity production frequently exceeds local demand, leading to significant renewable energy curtailment.
Transmission constraints further amplify this challenge.
To address these issues, Chile has accelerated deployment of utility-scale battery storage systems capable of shifting excess daytime generation into evening peak-demand periods.
The newly commissioned Victor Jara hybrid power facility in the Tarapacá region represents ContourGlobal’s second solar-storage investment in Chile, following the launch of its Quillagua project in neighboring Antofagasta Region last year.
One of the Fastest-Growing Storage Markets in the World
CEN reports that Chile currently has approximately 3,072 megawatts of battery storage capacity either operating or undergoing testing, with most projects located in northern desert regions.
The grid operator expects an additional 5,400 megawatts of storage capacity to enter operation by December, further strengthening Chile’s position as one of the fastest-growing energy storage markets globally.
Mining Industry Supports Long-Term Demand
ContourGlobal CEO Antonio Cammisecra emphasized that Chile’s large mining sector is a major driver behind demand for reliable renewable energy.
Mining operations require stable, predictable, and continuous electricity supplies, creating strong demand for solar-plus-storage solutions.
He noted that energy storage transforms renewable energy from an intermittent resource into a dispatchable energy solution, which is essential for reducing system costs, accelerating decarbonization, and replacing conventional power generation on a large scale.
Looking ahead, ContourGlobal is evaluating additional renewable energy and storage investments across South America, including projects near Santiago and wind energy developments in central and southern Chile.
The company also expects rapid growth in data center electricity consumption, further increasing demand for reliable 24-hour renewable power solutions.
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