France-based global utility Engie recently announced an investment of about $180 million to convert its decommissioned Tocopilla coal plant located in Antofagasta region of Chile into a 116 MW standalone battery energy storage system (BESS) facility.
The proposed BESS will be able to store 660 MWh of energy tapped from solar and wind energy generation in the country's northern region. With a discharge duration of 5.7 hours, the system comprising of 240 lithium-ion battery containers can improve the grid reliability of the region, according to the company.
The Tocopilla BESS will have an average annual generation capacity of 211 GWh, the equivalent of supplying almost 90,000 Chilean homes with power, avoiding the emission of 51,231 t/yr of carbon dioxide equivalent, added Engie.
The facility will go into construction phase in June this year. This is perhaps the first standalone BESS project for Engie in Chile, and fifth battery storage project including co-located facilities. Engie is currently the fourth-largest energy generator in the South American country, with an installed capacity of about 2.5 GW.
Back in 2022, Chile passed a significant legislation to promote energy storage including standalone projects with regulatory support and incentives. The country is one of the leading markets in South America for renewable energy and battery storage projects at present.
It is reported that battery storage systems are largely added to solar and wind energy projects in Chile to prevent curtailment out of over-production.
Grenergy reveals 'world's largest' 4.1 GWh BESS project in Chile -