Chile to Launch $2 Billion Bill for Large-Scale Energy Storage Systems for 2026-2028

The government of Chile has announced plans to introduce a bill this year aimed at procuring large-scale energy storage systems. With an investment of $2 billion, the initiative is set to commence operations in 2026 and will be the largest project of its kind in Latin America. President Gabriel Boric highlighted the necessity of integrating the country’s expanding renewable energy pipeline and emphasized the importance of storing solar and wind energy. The bill aims to address this challenge and establish the required transmission lines. The planned project will be situated in the Atacama desert, renowned for its abundant solar resources.

President Gabriel Boric earlier said the new bill would lead to the deployment of the energy storage resources needed to integrate the country’s growing renewable energy pipeline.

“Chile is one of the main producers of renewable energy in the world and today the challenge we have is to be able to store all that solar and wind energy and also to establish the corresponding transmission lines which is a fundamental step to achieve carbon neutrality before 2050,” he said.

“To achieve this, this year we will launch a bill that requires energy storage systems at large scale which will start operations in 2026. It will be the largest such project in Latin America, with an investment of US$2 billion and it will be in the Atacama desert.”

The announcement follows the recent release of preliminary bidding information by the Comisión Nacional de Energia (CNE) for energy storage and non-variable renewable energies procurement. The tender, divided into two blocks, seeks to secure a total of 5,400 MWh of capacity, with 1,800 MWh allocated for delivery in 2027 and another 3,600 MWh for delivery in 2028. The selected projects will provide energy to the National Electricity System through 20-year agreements.

Chile has been making significant strides in energy storage development, including the passage of a bill last year aimed at facilitating the participation of large-scale energy storage in the country’s electricity market. Several projects, totalling over 4 GWh, have made progress in recent months, involving AES Chile, oEnergy, Fotowatio Renewable Ventures, and Engie Chile. Additionally, local utility Colbun has inaugurated the first installation of its 800 MW storage pipeline. The majority of these projects are planned for the northern Atacama Desert region, renowned as one of the sunniest places in the world, where they will be co-located with Chile’s growing solar PV resources.