Innergex Renewable Energy has commissioned its 50MW/250MWh Salvador battery facility located on the site of its existing Salvador solar facility in northern Chile.
It is the Canadian developer’s first utility-scale battery storage site and among the first installed in Chile.
“The commissioning of our largest storage facility to date is a significant addition to our portfolio that showcases our commitment to sustained growth and long-term value creation,” said Innergex president and chief executive Michel Letellier.
“The facility will enable Innergex to leverage surplus solar production and enhance revenue optimization by aligning with market trends and demand in Chile, while capacity payments will bring important additional revenues to the facility’s revenue streams.
“We regard battery storage as a very attractive technology for Innergex’s growth and we look forward to developing additional renewable energy and complementary battery storage initiatives to seize the abundant opportunities before us.”
The Salvador battery facility is located on the site of the 68MW Salvador solar array in the Atacama Desert.
The renewable energy produced by the site is stored during the day to be dispatched to evening hours to benefit from peak prices on the merchant market at times of greater demand. This enables the storage facility to avoid daytime congestion and support the grid upon peak energy demand and optimize the project’s returns.
The facility will start benefiting from capacity payments by the end of 2023. Combined with capacity payments, the Salvador battery facility is expected to generate annual revenues of approximately US$8.2m (CAN$11.4m) in its first full year of operation, while operating, general and administrative expenses are expected to reach US$0.9m (CAN$1.2m) during the same period.
The facility is already fully financed through Innergex’s green bonds issuance completed on August 5, 2022.