Copenhagen Infrastructure Partners (CIP) has taken the final investment decision (FID) on a 220MW battery energy storage system in Chile.
The project, located in the Antofagasta region of northern Chile, has issued final notice to proceed and will be one of the first projects of its kind to reach commercial operations in Chile.
The Arena BESS facility is strategically located in a region with “world-class solar resource” and adjacent to existing transmission infrastructure and energy-intensive industrial clusters.
CIP is funding the 220MW/1000MWh BESS through its Growth Markets Fund 2 (CI GMF 2).
The asset will shift excess solar power generated during the day to supply renewable power during the night hours, thereby reducing the need for fossil fuel power generation during periods of peak demand.
The balancing services provided by the Arena BESS project will enable further integration of large-scale solar energy projects into the Chilean grid system.
“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.
“Through our Growth Markets Fund II, this cornerstone investment supports our long-term investment strategy in Latin America,” said Ole Kjems Sorensen, partner at CIP.
“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, said: “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.”