1. Engie’s Tocopilla project in Chile is its largest and first standalone BESS project, with previous projects co-located with solar PV.
2. Standalone BESS projects are now possible in Chile after a 2022 law was passed, offering opportunities in wholesale energy trading.
3. The Chilean government plans to run a tender for opex and capex support for energy storage projects for delivery in 2026-2028, with the Energy Storage Summit Latin America taking place in Santiago in October 2023.
Engie has announced the establishment of its fifth battery energy storage system (BESS) project in Chile, which is its largest to date and the first standalone project for the company. The previous four projects, located in Coya, Arica, Tamaya, and Capricornio, are co-located with solar PV systems. In contrast, the Tocopilla project will operate independently with its own grid connection to the National Electric System (NES).
The standalone BESS projects are now possible in Chile following the passage of a law in late 2022. This opens up opportunities for wholesale energy trading, with Chile having significant price spreads in the electricity market. BESS systems are being integrated into solar PV projects to address issues of over-production and reduce curtailment, with the majority of large-scale projects in Chile adopting this approach.
The government is planning to launch a tender for operational and capital expenditure support for energy storage projects targeting delivery in 2026-2028. While the Tocopilla project is standalone, it is situated alongside a substantial solar PV array and an ammonia plant. The Solar Media will host the 3rd annual Energy Storage Summit Latin America in Santiago in October 2023, bringing together key stakeholders in the energy storage sector from across Latin America to discuss the region’s energy storage landscape.