Innergex Renewable Energy has inaugurated its latest venture, the 35MW San Andres battery energy storage system (BESS), marking a significant stride in Chile's renewable energy landscape.
Situated within the precincts of Innergex's existing San Andres solar plant in northern Chile, the BESS stands as the company's second-largest energy storage facility in operation. This development follows the successful commissioning of the 50MW/five-hour Salvador battery facility in October 2023.
Nestled in the Atacama Desert, the San Andres BESS capitalizes on the region's abundant solar irradiance potential. By harnessing surplus solar energy during daylight hours, the facility strategically dispatches stored energy during evenings and early mornings, thereby optimizing market prices and alleviating daytime congestion while bolstering grid support during peak demand.
Michel Letellier, President and Chief Executive Officer of Innergex, expressed pride in the company's expanding energy storage portfolio in Chile, remarking, “We are very proud of our growing energy storage portfolio in Chile because it will contribute significantly to meeting the growing demand for 24/7 renewable energy production.”
The San Andres battery facility is projected to generate annual revenues ranging from $6 million to $8 million on a run-rate basis, while operational and administrative expenses are anticipated to reach $400,000 in the inaugural year of operation.
Letellier emphasized Innergex's strategic approach to portfolio optimization, leveraging market dynamics and demand in Chile to enhance generation and revenues. He added, “Overall, our ability to capitalize on variable energy prices and receive capacity payments allow us to deliver a clean energy solution with both a favorable risk profile and strong financial returns.”
