Chile energy storage power supply rental

Are battery energy storage systems a viable alternative for Chilean power producers?

With transmission lines at overcapacity and permitting delays slowing the development of new grid infrastructure, battery energy storage systems (BESS) have surged as a profitable alternative for Chilean power producers.

How much does a battery cost in Chile?

In fact, batteries charged at nearly $0/MWh during the day in the sunny, northern desert regions of Chile, sell energy at night for over $100/MWh. Although projects such as Engie’s BESS Coya are already enjoying these large spreads, this capacity payment will partially de-risk Chile’s dependence on volatile, but still profitable, merchant revenues.

How much electricity does Chile produce a year?

According to a study conducted by Chile’s Ministry of Energy in cooperation with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Chile is capable of producing more than 5,000 terawatt-hours of electricity from renewable sources each year.

How long does a battery last in Chile?

Moreover, the lack of an ancillary services market in Chile discourages shorter duration batteries (1-2 hours) as seen in the US and Europe. The general industry consensus is to maximize the availability of the battery and focus on 2-3 revenue streams instead of 4 to 5 (e.g., energy arbitrage, capacity payment, and frequency reserve).

How much energy does Chile get from coal-fired power plants?

At the moment, the country still obtains around 40 per cent of its energy from coal-fired power plants, a figure similar to Germany’s. On behalf of BMU, GIZ is providing advice to the Chilean Government on finding alternative uses for decommissioned power plants and retaining the associated jobs.

Why is a fundamental energy transition necessary in Chile?

A fundamental energy transition will be necessary in order to transform Chile’s power generation system, as the energy sector currently accounts for around 75 per cent of the country’s greenhouse gas emissions. Chile is emerging as South America’s pioneer in the fields of renewable energy and climate protection.