Copenhagen Infrastructure Partners (CIP) has reached the final investment decision (FID) for a 220MW battery energy storage system (BESS) project in Chile.
Located in the Antofagasta region in northern Chile, this project has issued a final notice to proceed and is expected to be one of the first of its kind to achieve commercial operations in the country.
The Arena BESS facility is positioned in an area known for its “world-class solar resource” and benefits from its proximity to existing transmission infrastructure and industrial clusters with high energy demands.
The 220MW/1000MWh BESS will be financed through CIP’s Growth Markets Fund 2 (CI GMF 2).
The facility will help store excess solar power produced during the day and release renewable energy during night hours, reducing the reliance on fossil fuel power generation during peak demand times.
The balancing services provided by the Arena BESS project will also support the integration of large-scale solar energy projects into Chile’s power grid.
Deployment
“We are excited to take this important step in deploying CIP’s first energy storage project in Chile, which will be one of the largest in the region,” said Ole Kjems Sorensen, partner at CIP.
“Through our Growth Markets Fund II, this cornerstone investment supports our long-term investment strategy in Latin America,” Sorensen added.
“It demonstrates CIP’s industrial approach in identifying a market need and delivering a large-scale project with a robust contractual framework, while also securing attractive risk-adjusted returns to our investors.”
Peter Halmo, associate partner at CIP, also emphasized the importance of the project, saying, “Arena BESS marks a significant milestone for the team and the first step in executing CIP’s significant pipeline of renewable projects in Chile.
The integration of solar projects into the energy system requires BESS projects to shift excess generation from day to night, making the technology essential for Chile to meet its ambitious renewable targets.”
