Chile is ramping up grid stabilization and energy transition efforts through large-scale Battery Energy Storage System (BESS) projects. Engie Chile, a subsidiary of the French energy company Engie, and Chilean energy company Colbún have announced plans for the additional construction of BESS totaling 1.7 GWh in the Atacama and Antofagasta regions.
Engie to Construct 802 MWh BESS at Coal Power Plant Site
Engie is set to install the 'BESS Lile' system, with a capacity of 140 MW/802 MWh, at the Mejillones thermal power complex in the Antofagasta region. This project utilizes the site of a power plant currently transitioning from coal to natural gas.
Engie anticipates that BESS Lile will achieve resource optimization, cost reduction, and a shorter construction period by leveraging existing power complex infrastructure, including transmission lines, associated substations, internal facilities, and roads. Comprising 160 battery containers and 40 electrical support equipment units, the system will be large enough to supply power to over 80,000 homes for five hours. Commercial operation is targeted before 2027.
Engie is accelerating its exit from coal power, with Mejillones coal-fired units 1 and 2 scheduled for closure by the end of the year, and the Andina and Hornitos thermal power plants ceasing operations by 2026. Furthermore, the Mejillones Energía Infraestructura (IEM) plant within the complex is set to be converted to natural gas generation. (The conversion to natural gas is expected by July 2026, a project for which Doosan Enerbility was awarded the fuel conversion contract.)
Colbún Adds 912 MWh BESS to Solar Power Plant
Prior to Engie's announcement, Chilean energy company Colbún stated that it had begun the construction of an additional 228 MW/912 MWh BESS at the Diego de Almagro Sur solar power plant in the Atacama region.
This BESS, which is being added to a 230 MW solar plant, will provide backup, frequency regulation, and energy transfer services to Chile's National Electric System (SEN), capable of supplying power to approximately 55,480 homes under optimal conditions. The project utilizes lithium iron phosphate (LFP)-based SolBank 3.0 batteries supplied by e-Storage/Canadian Solar, with commercial operation targeted for December 2026. It will consist of 201 battery containers of 1.2 MW/4.8 MWh each and 67 inverters, connecting to the Inca de Oro substation. Colbún already has experience with BESS, having installed an 8 MW/32 MWh system alongside the power plant in 2022.
Current Status and Outlook of the Chilean BESS Market
These two large-scale projects, securing a combined storage capacity of 1.7 GWh, mark a significant milestone in the development of Chile's energy storage industry. Currently, Chile has seven BESS facilities in pilot operation with a total installed capacity of 342 MW and a storage capacity of 1,328 MWh, with nine new facilities under construction. With major projects like Atlas Renewable Energy's 800 MWh BESS also being introduced, Chile is aggressively expanding BESS investment to support the integration of volatile renewable energy sources like solar and wind and enhance grid stability. The Chilean government considers energy storage systems a core infrastructure for achieving its 2050 carbon neutrality goal.
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