Innergex Renewable Energy has commenced operations at its 35MW five-hour San Andres battery energy storage system (BESS) in Chile.
Located on the site of Innergex’s existing San Andres solar plant in northern Chile it is Innergex’s second largest energy storage facility in operation, following the commissioning of the 50MW/five-hour Salvador battery facility on 30 October 2023.
Located in the Atacama Desert, the San Andres battery energy storage facility capitalises on the region’s exceptional solar irradiance potential.
During the day, surplus solar energy is stored and then dispatched during the evening and early mornings to capture peak market prices, allowing the facility to avoid daytime congestion, support the grid during peak demand, and optimise project returns.
The San Andres battery facility is expected to generate annual revenues in a range of $6m to $8m on a run-rate basis, while operating, general and administrative expenses are expected to reach $400,000, in the first full year of operation.
“We are very proud of our growing energy storage portfolio in Chile because it will contribute significantly to meeting the growing demand for 24/7 renewable energy production,” said Michel Letellier, President and Chief Executive Officer of Innergex.
“These projects allow Innergex to optimise its portfolio generation and revenues based on market dynamics and demand in Chile.
“Overall, our ability to capitalize on variable energy prices and receive capacity payments allow us to deliver a clean energy solution with both a favourable risk profile and strong financial returns.”