Attention international renewable energy investors: Chile is on the brink of becoming an energy storage powerhouse.
Chile is about to emerge as a dominant force in energy storage. The nation's unwavering dedication to renewable energy is exemplary. With nearly 5 gigawatts (GW) of storage capacity in the pipeline and ambitious plans to eradicate coal usage by 2025, coupled with aspirations for carbon neutrality by 2050.
Chile's reliance on renewable sources such as solar photovoltaic (PV) and wind energy must come hand in hand with an energy storage strategy that is ensuring a consistent, uninterrupted electricity supply. Moreover, Chile's unique status as an almost isolated energy island, with limited connections to neighboring countries, accentuates the urgent need for resilient energy storage solutions.
On this way Chile faces some challenges:
Transmission line saturation and the overproduction of solar energy in Northern Chile, making battery energy storage systems (BESS) not just an option, but a necessity for many renewable energy operators.
The energy sector is currently navigating a complex landscape of unpaid debts dating back to 2019, a result of government interventions to protect consumers from inflation and the pandemic’s financial impacts.
Additionally, the profitability energy price arbitrage through storage is now in question, as the market evolves and the differential between peak and off-peak prices narrows.
Despite these challenges, the future of energy storage in Chile holds promising opportunities for innovation and profitability through a blend of
arbitrage,
capacity payments,
and ancillary services. "
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Join the RENMAD webinar to learn more about Chile’s evolving energy storage market.
Understand the changing regulatory landscape that underpins the profitability of energy storage projects in Chile
Find out how leading energy storage companies are planning to optimize long term revenues by combining arbitrage, capacity payments and ancillary services
Identify opportunities to bid in upcoming auctions under the Energy Transition Law, which will see up to 2 GW of energy storage put up for auction
Learn how energy storage can solve Chile’s solar curtailment challenges, and what that means for storage companies’ the bottom lines .
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