How much energy storage capacity Chile may have in 2026

Energy storage is gaining traction in Chile, a country where increased penetration of variable output renewables and a coal-retirement push is spurring demand for the systems.

The private sector, in just a few years, has built a 2GW pipeline of battery projects that have entered service, are in the testing phase or are declared under construction. 

By the end of 2026, Chile could have at least 1.74GW of energy storage capacity with average injection duration of four hours.

But, given 829MW more is under review by national energy commission CNE, the figure could reach 2.57GW, the regulator’s executive secretary, Marco Mancilla, told an energy storage event hosted by Chile’s Universidad Técnica Federico Santa María. 

In 2022, around 70MW of storage capacity was available.  

Chile’s private sector is pumping wheelbarrows of cash into battery storage systems, generating opportunities for component suppliers and system integrators. Given the pace of investment, lawmakers recently removed from an energy transition bill a measure that establishes a government tender for up to 500MW of energy storage capacity.

This follows achievement of the goal of building, by the end of the year, a 2GW pipeline of operating or confirmed energy storage projects. In a recent presentation, energy minister Diego Pardow said 400MW was in operation, 240MW was in the testing phase and 1.36GW was declared under construction. 

Bidding rules for Chile’s last regulated market supply auction had been tweaked to spur energy storage systems but did not whet appetites. 

Mancilla, citing the flow of storage projects observed, said promoting storage via the regulated supply auction avenue may not be necessary, delegates heard at the event, held in capital Santiago and sponsored by grid coordinator CEN, CNE and solar energy research center SERC.  

In April, storage capacity of 2.78GW had the environmental green light and 6.06GW was in the environmental review phase, according to data from local renewables and storage association Acera. 

The bulk of planned battery capacity is linked to solar PV projects (2.77GW), while standalone storage accounts for 1.60GW, solar PV-wind-storage hybrid installations 1.42GW and wind-storage 272MW.

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. 

The document, first published in 2022, is designed to support preparations for a 100% renewable power grid from 2030.

From 2026, Chile could see a sharper focus on longer-duration storage systems, potentially incorporating other types of technology. 

CEN, meanwhile, has said it was updating its roadmap for an accelerated energy transition against a backdrop of a coal-fired generation retirement process that has occurred faster than originally expected.

Storage systems, along with other flexibility solutions, are deemed necessary to support the exit of coal and permit higher penetration of variable output renewables. A key goal today is mitigating the impact of soaring energy curtailment, linked to solar oversupply, system flexibility limitations and some transmission congestion.