Chile’s rapid buildout of solar and wind has exposed a structural constraint that capacity additions alone cannot solve: curtailment and volatility in a grid dominated by intermittent generation.
Against that backdrop, Grupo Ibereólica Renovables’ decision to advance 1,330 MW of battery energy storage systems across its Chilean portfolio signals how developers are recalibrating project economics toward firmed renewable output rather than headline megawatts.
The centerpiece is the Antofagasta ERNC hybrid project, a 1,203 MW combination of wind and photovoltaic generation paired with a 990 MW battery system offering 4,950 MWh of storage. At five hours of discharge at full power, the storage component approaches the scale required to materially reshape dispatch patterns in northern Chile, where solar overgeneration during daylight hours routinely depresses prices and forces curtailment. Environmental approval was granted in September 2023, with operations targeted for March 2027, placing the project on a timeline aligned with Chile’s expected transmission reinforcements but not fully dependent on them.
The size of the Antofagasta battery stands out in a national context where many operating systems remain below the 200 MW threshold. More importantly, the five hour duration reflects a shift away from short term arbitrage toward system balancing and evening peak support. As Chile continues to retire coal and rely more heavily on variable renewables, duration is becoming as critical as power rating, particularly in regions distant from demand centers.
Ibereólica’s strategy extends beyond a single flagship project. In the Atacama Region, the company is hybridizing the Cabo Leones III wind farm, which currently operates at 192.5 MW across two phases. The addition of a 170 MW battery with 680 MWh of storage provides four hours of discharge capability, enabling the asset to smooth output and capture higher value during peak demand windows. Similar logic underpins the planned battery integration at the Atacama wind farm in Freirina, where a 170 MW BESS with identical 680 MWh capacity will complement the existing 165.3 MW of wind generation.
Wholesale market data over the past two years have shown widening spreads between midday solar driven lows and evening peaks, particularly in the north. Batteries of four to five hour duration are positioned to arbitrage those spreads while providing ancillary services that the system operator increasingly relies on as thermal capacity exits.
Permitting remains a critical variable. While all 1,330 MW of storage is currently in the permitting pipeline, Chile’s environmental review processes have lengthened as projects grow in scale and complexity. The Antofagasta ERNC approval suggests regulators are becoming more comfortable with large hybrid systems, yet construction timelines will still depend on supply chain conditions for batteries and inverters, as well as clarity on long term market remuneration for storage services.
