Chile Advances Renewable Energy with Focus on Solar and Energy Storage Expansion

Chile is making significant strides in expanding its power generation capacity, with a strong emphasis on renewable energy resources and battery energy storage systems (BESS). The country aims to produce at least 70% of its electricity from renewables by the end of the decade, a target it achieved in the previous year. Currently, Chile’s energy mix consists of solar power, wind power, and hydropower, each contributing over 20% to the annual generation. According to Ember, an energy think tank, renewables supplied 70% of Chile’s electricity in 2024, while fossil fuel-based generation accounted for the remaining 30%. This marks a significant shift from 2020, when fossil fuels represented 53% of the energy mix, with renewables providing about 47%.

Government officials predict that solar power will constitute 46% of the country’s total installed generation capacity by 2060, predominantly in the northern region, especially in Antofagasta. This area is renowned for its high solar irradiance and favorable conditions for renewable energy development, particularly benefiting the mining industry, which relies heavily on solar power for its operations.

One notable project is the Quillagua solar-plus-storage installation in Antofagasta, which features a 221-MW solar photovoltaic plant combined with 1.2 GWh of battery energy storage. Developed by UK-based ContourGlobal, the Quillagua plant is expected to become one of Chile’s largest solar and storage projects once fully operational. The installation comprises 452,000 solar panels, 5,000 solar trackers, 267 battery storage modules, 44 transformation centers, and 90 inverters. ContourGlobal plans to operate the facility under a power purchase agreement (PPA) while selling surplus power to the commercial market. Antonio Cammisecra, Global CEO of ContourGlobal, expressed pride in launching operations ahead of schedule, emphasizing the project’s importance for grid stability and addressing supply and demand challenges.

Additionally, ContourGlobal is developing the Victor Jara solar plant in Tarapacá, which will feature a 231-MW capacity and 1.3 GWh of battery storage, expected to come online by the end of the year. Both projects were acquired from Grenergy for over $900 million.

In a separate initiative, California-based Nextracker and ENGIE Chile announced the PV and BESS Libélula project in May. This hybrid facility will contribute 350 MW to the National Electric System, located in municipalities north of Santiago, an area with high power demand. The project will consist of 245,560 solar panels capable of generating 151 MWp and 208 lithium-ion battery containers with a five-hour discharge capacity, totaling 199 MW. ENGIE Chile’s CEO, Rosaline Corinthien, highlighted the project’s significance in diversifying renewable generation and ensuring a stable energy supply.

The Libélula project represents an investment exceeding $310 million and includes the construction of a substation and a high-voltage transmission line covering approximately 10 miles. It will also be ENGIE’s first hybrid facility to integrate decarbonized steel, showcasing the company’s commitment to sustainable innovation.

Atlas Renewable Energy, based in Miami, recently inaugurated the BESS del Desierto Project in partnership with Chilean energy giant COPEC-EMOAC. Located in Antofagasta, the project boasts a capacity of 200 MW of solar power and 800 MWh of battery storage. Carlos Barrera, co-founder and CEO of Atlas Renewable Energy, emphasized the project’s dual focus on sustainability and reliability, asserting that Latin America has the potential to lead in this global transformation.

Atlas also announced plans to develop additional BESS projects in Brazil, Colombia, and Mexico, further solidifying its leadership in energy storage solutions. The company recently secured $510 million in financing for its Estepa project in Chile, which will have a solar capacity of 215 MW and two battery energy storage systems, supported by long-term PPAs with major players in the mining and energy sectors.

As Chile continues to prioritize renewable energy and advanced storage solutions, these initiatives reflect the country’s commitment to a sustainable energy future.