Chile's Energy Grid Sees Major Investment in Storage
Chile has rapidly shifted its power generation from over 60% fossil fuels in 2013 to about 70% from renewable and low-carbon sources today, with solar and
Chile now generates as much as 70% of its electricity from renewable and low-carbon sources, according to government officials. This marks a dramatic shift from 2013, when fossil fuels accounted for more than 60% of the country's power generation, with solar and wind alone now providing about 40% of total output.
InvestChile, a government agency, reports that the country's 2025 portfolio of energy projects has attracted $38.2 billion in foreign direct investment. The top foreign investors by total stock include Canada, with over $40 billion mostly in mining and energy, the United States at just over $25 billion, the Netherlands with more than $21 billion, the United Kingdom at about $20 billion, and Spain with roughly $18.3 billion.
Major Hybrid Projects Underway
ContourGlobal has begun construction on the Los Maitenes hybrid project in the O'Higgins region. The facility combines 131 MWp of solar photovoltaic capacity with 90 MW/360 MWh of battery storage. The company has signed a deal with CATL to supply 3 GWh of storage systems for this and other international projects, using containerized liquid-cooling battery energy storage systems built around lithium-iron phosphate cells.
Scheduled for commercial operation by the end of 2027, Los Maitenes will help ContourGlobal surpass 1 GW of hybrid generation capacity in Chile. It will expand the company's local portfolio to over 580 MW of solar power and 490 MW/2.9 GWh of battery storage. The project is located near the heart of Chile's electricity consumption in the Central Interconnected System.
"Our growth in Chile goes hand in hand with the transformation of the country’s power system," said ContourGlobal CEO Antonio Cammisecra. He stated the project builds on a 'Sun at Night' business model, enabling solar energy generated during the day to be delivered during peak evening demand hours.
AES Andes Expands Solar Hub
AES Andes, a subsidiary of U.S.-based AES Corp., is building two major renewable projects with a combined 1.3 GW of capacity, representing an investment of more than $1.1 billion. The Pampas and Cristales projects in the Antofagasta region combine solar, wind, and storage.
| Project | Solar PV Capacity | Wind Capacity | BESS Capacity & Duration |
|---|---|---|---|
| Pampas | 229 MW | 128 MW | 171 MW / 5-hour |
| Cristales | 288 MW | - | 340 MW / 4-hour |
Both projects are expected to enter commercial operation next year. They join the recently completed Andes Solar Hub, which AES Andes calls the largest installation of its kind in Latin America, representing over $1.3 billion in investment to date.
Green Hydrogen and Storage Innovations
Other large-scale developments are progressing. Consorcio Austral has applied for environmental approval for its $4.7 billion Acuario green ammonia project in the Magallanes region. The facility would produce about 4,100 tons of green ammonia daily, powered by a massive 1.73 GW wind farm, with construction slated to begin in late 2029.
Meanwhile, Colbun S.A. Is building the 228-MW Diego de Almagro Sur battery storage project in the Atacama region. The company says it is the first energy storage initiative in the world authorized to sell carbon credits under Article 6.2 of the Paris Agreement for use in national climate commitments.
I am convinced that projects like BESS DAS will help address challenges in the Chilean power system, such as reducing the curtailment of renewable energy and displacing power generation from fossil fuels, said Joachim Sell, carbon procurement director of the collaborating KliK Foundation.
ENGIE Energia Chile is closing its last four coal-fired power plants while expanding its own battery storage projects, including the 116-MW/660-MWh Tocopilla facility.
