Copenhagen Infrastructure Partners has started construction of the 300MW Patache battery energy storage project in Chile. It has a capacity of 1.5GWh.
The company issued final notice to proceed through its Growth Markets Fund II, authorising construction under main supply and construction contracts, CIP said.
The milestone marks a key step in project execution and reflects confidence in Chile as a market for energy storage and grid infrastructure, the company added.
Patache is located near existing transmission infrastructure and industrial clusters in an area with strong solar resource.
The project will store excess solar power generated during the day and supply electricity during periods of higher demand.
Its balancing services are expected to reduce reliance on thermal generation, lower CO2 emissions and support further integration of large-scale solar energy into the Chilean power system.
The project has also qualified for an internationally recognised carbon offset programme.
The investment includes a group of co-investors holding a minority stake in the project.
Patache builds on the Arena BESS project, a 220MW/1.1GWh installation in the Antofagasta region that has completed construction and is delivering electricity to the grid.
“Reaching Final Notice to Proceed for Patache is an important step for the project and for GMF II. It reflects the strength of the underlying fundamentals, the close collaboration with our contractors and partners and our continued confidence in Chile as a key market for energy storage and grid infrastructure”, said Peter Halmø, head of Latin America and managing director at Copenhagen Infrastructure Partners.
“We are proud to move into the construction phase and to contribute to the delivery of a more resilient and efficient power system.”
“Projects like Patache and Arena BESS are great examples of the Growth Markets funds’ commitment and long-term strategy to invest in high-growth, middle-income markets such as Chile”, said Ole Kjems Sørensen, partner at Copenhagen Infrastructure Partners.
“By developing robust energy infrastructure, we aim to create value for our investors while supporting a cost-effective transition to more sustainable energy systems.”