Project Overview
Acciona Energía recently announced plans to construct a 200MW/1GWh battery energy storage system (BESS) at its Malgarida photovoltaic complex (238MWp) in Chile’s Atacama Desert. The project is expected to commence operations in early 2027 and will become one of the largest battery storage installations in Latin America upon completion.
The storage system will deliver 200MW of power for up to five hours, storing solar energy generated during the day and dispatching it at night, enabling cleaner and more flexible grid operation while reducing reliance on fossil fuels and lowering carbon emissions.
Technical Specifications and Functions
According to Acciona Energía’s announcement, the core technical parameters of the Malgarida storage project include:
- Power Capacity: 200MW
- Energy Storage Capacity: 1GWh (1,000MWh)
- Continuous Discharge Duration: 5 hours
- Associated PV Installation: 238MWp Malgarida photovoltaic complex
- Expected Commissioning: Early 2027
The system will enable energy time-shifting, storing electricity during peak solar generation periods and releasing it during nighttime or peak demand hours, optimizing renewable energy management in Chile’s grid.
Battery Supplier Technology Approach
While Acciona Energía has not yet disclosed the specific battery supplier for the Malgarida project, the company’s technology preferences can be inferred from previous projects.
At the Cunningham energy storage plant project in Texas, USA, Acciona employed 159 2.4MWh battery cabinets manufactured by Sungrow, paired with liquid-cooled cells manufactured by CATL. This project has a capacity of 190MW/380MWh and has been one of Texas’s largest battery storage projects since 2023.
This technology combination demonstrates that Acciona tends to select globally leading energy storage system integrators and cell manufacturers to ensure project reliability and economic efficiency.
Acciona’s Renewable Energy Portfolio in Chile
The construction of the Malgarida storage project further consolidates Acciona Energía’s leading position in Chile’s renewable energy market. Currently, the company’s total installed capacity in Chile has reached 922MW, including:
Wind Power Projects:
- Punta Palmeras wind farm (45MW)
- San Gabriel wind farm (183MW)
- Tolpán Sur wind farm (84MW)
Photovoltaic Projects:
- El Romero solar plant (246MWp)
- Usya solar plant (64MWp)
- Almeyda solar plant (62MWp)
- Malgarida photovoltaic complex (238MWp)
In addition to the Malgarida storage project, Acciona Energía is developing three other energy storage projects linked to its Chilean solar assets, totaling 1.5GWh in capacity, demonstrating the company’s long-term strategic positioning in Chile’s energy storage market.
Current State of Chile’s Energy Storage Market
Chile has emerged as Latin America’s leader in battery energy storage system deployment. The Atacama Desert region in northern Chile has the world’s highest solar radiation levels, providing exceptional conditions for large-scale photovoltaic generation, but also faces serious solar curtailment issues.
According to data from Chile’s renewable energy and energy storage association (ACERA), Chile’s solar curtailment in 2024 could reach approximately 5TWh, sufficient to power approximately 3.4GW of 4-hour duration energy storage systems.
As of June 2024, Chile had 1,005MW of installed energy storage capacity. Multiple large-scale storage projects are under construction or in operation:
Major Energy Storage Projects and Suppliers in Chile
Quillagua Project (ContourGlobal): 221MWp solar + 1.2GWh storage, capable of delivering 200MW of power for over 6 hours after sunset, commissioned in April 2025, Latin America’s largest solar-plus-storage plant.
Oasis de Atacama Project (Grenergy): The world’s largest hybrid solar and energy storage project, which will ultimately feature 2GW of solar capacity and 11GWh of energy storage. The project employs battery products from multiple suppliers, with BYD providing battery systems, expanding total storage capacity from the initially planned 1.1GWh to 3GWh in 2024. Additionally, CATL is supplying 1.25GWh of battery capacity for the project’s fourth phase. In early 2025, the first batch of 600MWh BYD batteries arrived at the port of Iquique, marking an important step toward commissioning.
BESS del Desierto Project (Atlas Renewable Energy): A standalone 200MW/800MWh energy storage plant commissioned in April 2025. The project employs Sungrow’s PowerTitan liquid cooling and control systems. Atlas Renewable Energy states that the project’s 320 battery units can provide approximately 2,500 electric buses with 500,000 km of range and can deliver over 280GWh of clean power to the grid annually, reducing renewable energy curtailment in northern Chile due to insufficient grid capacity.
Coya BESS Project (Engie): 638MWh storage capacity, also supplied by Sungrow, commissioned in the first half of 2024, becoming the region’s largest battery energy storage system at that time.
Capricornio BESS Photovoltaic Hybrid Project (Engie): 48MW/264MWh capacity, began operations in May 2024.
These projects fully demonstrate the vitality of Chile’s energy storage market and the deep participation of international mainstream energy storage equipment suppliers. From the supplier landscape perspective, Chinese companies such as Sungrow, BYD, and CATL occupy important positions in Chile’s energy storage market, consistent with global energy storage industry development trends.
Significance of Energy Storage Systems for Chile’s Energy Transition
Chilean Energy Minister Diego Pardow Lorenzo stated at the 2025 Energy Storage Summit Latin America that Chile is likely to exceed its 2050 renewable energy targets by 2027. Energy storage systems play a crucial role in this energy transition.
Chile’s electricity consumption shows minimal day-night fluctuation, maintaining around 11-13GW, primarily due to the 24/7 operation of the mining industry. Energy storage systems can shift excess daytime solar generation to nighttime use, not only addressing curtailment issues but also providing stable clean energy supply for industries such as mining that operate around the clock.
It is estimated that Chile needs approximately 8GW of battery storage to provide system stability and increase revenue for asset owners. With declining technology costs and strengthening policy support, Chile’s energy storage market is rapidly expanding.
In the first quarter of 2024, over 40% of Chile’s electricity consumption came from renewable energy systems. The solar-plus-storage combination is surpassing other forms of generation in competitiveness, becoming a key technology for more flexible and lower-cost energy supply in the future.
Chile’s mining industry has particularly urgent demand for energy storage technology. As one of the world’s largest copper producers, Chile’s mining enterprises require stable 24/7 power supply. Energy storage systems can more easily shift excess daytime solar generation to nighttime, providing clean and stable energy security for the mining industry.
Global Energy Storage Industry Trends
The global energy storage market is experiencing rapid growth. According to data from the International Energy Agency (IEA), global battery energy storage capacity reached 70GW in 2024. Chinese energy storage battery companies have performed particularly prominently, with CATL, BYD, EVE Energy, and HiTHIUM occupying top positions in global shipment rankings.
In terms of energy storage system integrators, the top five global companies in 2024 were Tesla, Sungrow, CRRC Zhuzhou Institute, Fluence, and HyperStrong. Tesla and Sungrow engaged in fierce competition in 2024, with Sungrow surpassing Tesla’s quarterly shipments in the third and fourth quarters.
According to the Q1 2025 bankability ratings report, CATL and Sungrow have joined the AAA rating tier alongside Tesla, becoming the most financially attractive suppliers in the energy storage industry. This rating reflects these companies’ leading positions in technical capabilities, financial soundness, and project delivery capacity.
Latin America and the Caribbean region generated approximately 64% of their electricity from clean energy in 2024, above the global average of 39%. The region has announced, pre-construction, or under-construction utility-scale solar and wind capacity reaching a record 319GW, and by 2030, the region’s large-scale solar and wind power capacity is expected to grow by over 460%.
Challenges and Opportunities in Chile’s Energy Storage Market
Despite rapid development, Chile’s energy storage market still faces challenges. At the October 2024 Energy Storage Summit Latin America, María Florencia Attademo-Hirt, Chile Country Manager at the Inter-American Development Bank Group, pointed out that the lack of clear regulatory frameworks and legal systems is a significant current issue, directly related to the business models for energy storage assets and project financing capabilities.
Henrik Tuveson, Senior Market Development Manager at Wärtsilä Energy Storage & Optimization, stated that batteries are the best solution for shifting daytime generation to nighttime dispatch in the short term. While increasing transmission line capacity is also an option, it would take years to implement. In contrast, large-scale storage projects can be deployed more quickly and have immediate impact.
As the Chilean government continues to improve energy storage-related policies, including introducing new energy storage incentives and standalone energy storage project tenders, the market environment is continually improving. In May 2024, Chile’s Ministry of Energy sought 13GWh of standalone energy storage project capacity in a public land tender auction, demonstrating strong government support for energy storage industry development.
Project Outlook and Prospects
Acciona Energía’s Malgarida storage project is not only an important step in the company’s renewable energy strategy in Chile but also a significant milestone in Latin America’s energy storage industry development. The successful implementation of this project will provide greater flexibility to Chile’s grid, help match the country’s abundant daytime solar output with energy demand, and strengthen grid stability through large-scale energy storage technology applications.
With the continued growth in clean energy demand across Chile and the entire Latin American region, coupled with declining energy storage technology costs, the region is expected to see more similar large-scale energy storage projects in the coming years. With its rich experience and technical strength in renewable energy, as well as its experience successfully operating large energy storage projects in Texas, USA, Acciona Energía is well-positioned to continue expanding its leading advantage in this rapidly growing market.
From a global perspective, Chile’s energy storage market development experience holds significant demonstration value for other Latin American countries. Brazil, Argentina, Colombia, Peru, and other nations are also actively promoting energy storage industry development, with the entire Latin American region becoming one of the world’s fastest-growing energy storage markets.
About the Malgarida Photovoltaic Complex
The Malgarida photovoltaic complex consists of the Malgarida I and Malgarida II plants, with a total installed capacity of 238MWp, commissioned in 2021. The complex comprises 580,000 photovoltaic modules installed on horizontal tracking structures, covering 535 hectares in the Atacama Desert region, which has the world’s highest solar radiation levels. The complex generates 654GWh of clean electricity annually, equivalent to the energy demand of 280,000 Chilean households, avoiding 512,000 tons of CO₂ emissions per year. The total project investment was US$170 million. During construction, Acciona Energía collaborated with local authorities, academic institutions, and social representatives to implement an innovative circular economy project that recycled 25,000 wooden pallets used to transport the 580,000 photovoltaic modules.
