What's happening in Chile's Bess market?

The current wave of excitement around Chile’s BESS market started in October 2022, when the Chilean government passed legislation that incentivised the deployment of energy storage. The bill allows standalone energy storage systems to receive income from dispatching their energy and power in the country’s National Electric System market.

Is Chile ready for a standalone energy storage project?

This project alone nears the capacity (13GWh) the Chilean Ministry of Energy sought in a public land bidding auction for standalone energy storage projects in May of 2024. Chile has been one of the countries at the forefront of the renewable energy transition in Latin America, first with solar PV and now with BESS.

What is the Bess project?

The BESS project will not only offer energy shifting and capacity contribution but also advanced grid services such as grid forming, black start and inertia support, which are vital for incorporating more renewable energy sources into Chile’s national grid.

Why do we need a Bess system?

BESS can store surplus energy produced by renewable sources during periods of high generation and release it at peak demand, during low production, or whenever there is available grid capacity. Thus, BESS ensures reliable power supply and eases the integration of renewable generation facilities into the market.

Does Chile have a Bess auction procedure?

Chile has also put in place an auction procedure to award public land for the development of BESS projects. Moreover, the country’s Congress has launched discussions on amending Chile’s energy transition bill to include large-scale BESS auctions.

How can Chile keep up with the changing energy demand landscape?

Chile is exploring a variety of solutions to keep abreast of the changing energy demand landscape ranging from BESS to innovative projects using CO2. In March 2024, BESS Coya, the largest battery-based energy storage system in Latin America, started operations.