Canadian Solar to deliver 912 MWh battery energy storage
Canadian Solar signed a contract with Colbún, one of Chile''s leading power generation companies, to supply a 228 MW/912 MWh battery energy storage system for the
With transmission lines at overcapacity and permitting delays slowing the development of new grid infrastructure, battery energy storage systems (BESS) have surged as a profitable alternative for Chilean power producers.
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.
In 2022, Chile passed an energy storage and electromobility bill, which made stand-alone storage projects profitable, but the market is still expecting new rules on capacity payment for storage projects, which are to be approved in 2024. Chile has also put in place an auction procedure to award public land for the development of BESS projects.
Chile's capacity remuneration scheme, which aims to incentivize investment in energy storage and ensure system reliability by recognizing capacity payments, is robust, with payment risk considered systemic by Fitch.
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