Chile analyzing 30GW energy storage grid connection requests

A multi-gigawatt pipeline of energy storage projects is building up in Chile, data indicates. 

Like in other countries decarbonizing their generation parks, the technology can help ease curtailment and support continued penetration of non-conventional renewables.

Projects involving more than 9.0GW/32,000MWh of capacity have secured grid connection approval, according to data presented by grid coordinator CEN chairman Juan Carlos Olmedo during energy storage and green hydrogen conference Renmad Chile, held this week in capital Santiago.

The biggest chunk, of around 2.7GW, of open access requests approved corresponds to sundrenched Antofagasta region, also home to the lion’s share of storage projects operating or under construction. In terms of approved requests, Atacama and Tarapacá follow. However, there is interest in installing systems along almost the whole length of the country. 

In terms of connection requests under review, there is a portfolio exceeding 30.0GW/114,000MWh, according to the presentation. These requests constitute an early-stage technical step, basically to determine whether there is space on the grid. Not all requests will eventually advance or result in a project getting built.

Chile’s fleet of built storage systems is steadily growing. Capacity of 850MW is operating or in the testing phase.

In addition, 17 projects – 14 linked to renewables plants and three standalone – are in the construction phase, for a total of 1.09GW/4,241MWh, according to the CEN presentation.

Research published by CEN indicates that 2GW of batteries installed by the end of 2026 would provide optimal economic benefits – of US$513mn – and help fine-tune requirements through 2032. CEN has estimated that up to 4GW more, with injection duration of 6-8 hours, is the optimum level for 2026-30.

In parallel, six standalone energy storage projects involving combined capacity of 11.6GWh are advancing in a government land assignation process. Authorities are offering the private sector concessions to use acreage in six geographic areas, known as macrozones, for the installation of plants.

According to data from local storage and renewables chamber Acera, 7.63GW of storage capacity, the bulk linked to planned solar PV parks, was under environmental review in June. On top of this, 3.52GW has been given the environmental green light.

In Chile today, lithium-ion battery technology dominates and, particularly given falling prices, should continue to do so, but against a backdrop of growing demand for bankable systems with longer discharge durations, there is interest in alternatives such as molten salt technology – including a sodium-sulfur unit proposed by Germany’s BASF – and pumped storage and flow batteries. 

Chile already leverages other forms of energy storage: hydropower and concentrated solar. Diversification of the storage park is advisable, the event was told. 

Echoing comments made by other panelists, Cristián Sepúlveda, manager of Chile’s concentrated solar power association ACSP, warned about the risk of the market being flooded with storage capacity and the associated market distortions this could potentially create.

On the sidelines, Sepúlveda told BNamericas that the price of concentrated solar technology had fallen by over 50% since 2010 and that it was well-positioned to continue supporting grid decarbonization. India, for example, is betting heavily on the technology.

“We are one of the technologies that could substitute coal capacity, especially at night, with over six hours of storage,” he said.

The average injection duration for concentrated solar power globally is 10 hours. Chile’s only concentrated solar power plant, Cerro Dominador, has injection capacity of 17.5 hours. 

Chile is in the process of retiring or reconverting around 5.5GW of coal-fired generation capacity. Concentrated solar units provide the same benefits to the electrical grid, such as stability and 24/7 output, in addition to being more flexible since they allow production on demand.

Meanwhile, standalone storage projects, even without an associated power purchase agreement, could be bankable, based on capacity payment flows that they can secure, the event heard. Associated transfer regulations were approved in H1.  

A typical standalone project is expected to take around three years to reach the ready-to-build stage, delegates were told.

Developers seeking permission to add a battery storage system to an existing renewables plant do not necessarily need a separate environmental license if no associated grid connection infrastructure is required. Chile's biggest generator, Enel, is betting on this hybridization strategy.

One challenge facing battery storage projects planned for near urban areas is cooling system noise, which can be addressed via the likes of acoustic barriers, delegates were told.