Chile’s Atacama Desert: The Global Battery Hub
Chile’s Atacama desert is becoming the world’s biggest battery farm.
A KKR-backed power producer has just opened a $500 million solar-and-storage plant in Chile’s Atacama desert, delivering electricity at night. Chile is poised to welcome 5,400 megawatts more storage capacity by December.
A New Plant in the Desert
ContourGlobal, the independent power producer backed by KKR, has inaugurated a nearly $500 million solar-and-storage facility in Chile’s Atacama desert. This plant combines 231 megawatt-peak of photovoltaic capacity with 1.3 gigawatt-hours of battery storage, capable of delivering 200 megawatts for up to 6.5 hours at night—the longest duration in Latin America.
The Advantages of the Atacama Desert
The project, located in the Tarapacá region, is secured by a 15-year power purchase agreement with Empresas Copec. It’s ContourGlobal’s second solar-and-storage investment in Chile, following Quillagua in the Antofagasta region. Together, these projects deliver 452 megawatt-peak of solar and 2.5 gigawatt-hours of battery storage.
The Atacama desert is a prime location for renewable energy due to its intense sunlight. However, excess solar generation during the day often goes unused because Chile’s grid cannot accommodate it, leading to transmission bottlenecks. Battery storage solves this by absorbing excess power during the day and discharging it at night, providing a constant and reliable electricity supply.
The Future of Storage in Chile
Chile currently has 3,072 megawatts of battery energy storage operating or under testing, with most projects located in the Atacama desert. The country’s robust regulatory framework, growing electricity demand, and pipeline of renewable energy investments make it an attractive location for further development. ContourGlobal is exploring additional projects, including those closer to Santiago and wind projects throughout Chile.