Innergex Renewable Energy, a Canadian developer, has successfully commissioned its inaugural utility-scale battery storage facility in northern Chile. The 50-megawatt (MW)/250-megawatt-hour (MWh) Salvador battery facility is situated on the site of the existing Salvador solar facility and ranks among the first of its kind in Chile.
Michel Letellier, President and Chief Executive of Innergex, expressed the significance of this milestone, marking the company's commitment to sustained growth and long-term value creation. The Salvador battery facility presents an opportunity for Innergex to harness surplus solar production, align with market trends and demand in Chile, and tap into additional revenue streams through capacity payments.
The facility is strategically located within the Atacama Desert, co-located with the 68MW Salvador solar array. It serves the essential function of storing renewable energy generated during the day for dispatch during evening hours, capitalizing on peak prices in the merchant market when demand is higher. This approach mitigates daytime congestion, bolsters grid support during periods of peak energy demand, and optimizes the project's returns.
The Salvador battery facility is expected to commence receiving capacity payments by the end of 2023. In combination with these payments, it is projected to generate approximately US$8.2 million (CAN$11.4 million) in annual revenues during its first full year of operation. Operating, general, and administrative expenses for the same period are estimated to reach US$0.9 million (CAN$1.2 million).
Notably, the facility's financing has already been secured through Innergex's green bonds issuance, which was successfully completed on August 5, 2022. The Salvador battery facility represents a strategic addition to Innergex's growing renewable energy portfolio and is poised to contribute to the company's revenue optimization efforts.
Innergex remains committed to exploring additional renewable energy initiatives and complementary battery storage projects to capitalize on the abundant opportunities within the industry.
