DNV Supports Atlas Renewable Energy in Securing $289M for 800 MWh BESS Project in Chile

Oct 17, 2024

DNV, the independent energy expert and assurance provider, has supported Atlas Renewable Energy in securing $289 million in financing for its first standalone Battery Energy Storage System (BESS) project in Chile. The financing package, backed by senior loans and credit lines from BNP Paribas and Crédit Agricole CIB, will fund the development of Battery Energy Storage System del Desierto, one of the largest energy storage projects in Latin America, with a storage capacity of 800 MWh.

The project, designed to stabilize Chile’s energy grid and reduce renewable energy curtailment, is expected to inject 280 GWh of electricity into the grid annually. Its completion will not only bolster grid reliability but also help cut carbon emissions in a region grappling with intermittent renewable energy supplies.

DNV played a central role in the financing process by conducting due diligence on market conditions and assessing the risks of a long-term energy purchase agreement. The consultancy also performed an optimization of the battery system and dispatch analysis, helping to secure investment from global financial institutions. DNV’s expertise enabled Atlas to accelerate the development of their battery storage project and strengthen their market position as a pioneer in standalone energy storage, helping the company advance their position in Latin America as a major provider of clean energy solutions for large energy consumers in the region.

Marian van den Berg, Senior Project Consultant, Energy Systems at DNV, said: “This project highlights our expertise in market due diligence for energy storage and marks a key development for Chile’s energy market. Our rigorous market analysis and risk assessment were pivotal in securing investor confidence, demonstrating that standalone battery storage is a sound investment proposition in Latin America.”

Santiago Blanco, Executive Vice-president and Regional Director for Latin America, Energy Systems at DNV, added: “The battery storage system del Desierto will set a new benchmark for energy storage projects in the region. This development will help address some of Chile’s most pressing energy challenges while paving the way for future investments in sustainable energy. DNV’s contribution was invaluable in securing the financing necessary to bring this project to life.”

Chile is at the forefront of Latin America’s green energy transition, leveraging the potential the Atacama Desert’s solar intensity (the highest in the world). Currently, wind and solar energy account for about 33% of Chile’s electricity demand, overpassing thermal generation. This is driven by a robust clean energy agenda that supports projects aimed at achieving carbon neutrality by 2050. The country ranks among the top 20 performers in energy transition globally, according to the World Economic Forum’s 2024 report, and aims to achieve carbon neutrality by 2050.

By 2035, the country plans to export solar solutions, including storage systems, while developing a resilient energy sector to integrate renewables and reduce emissions. To address the variability of solar and wind energy, Chile requires additional safe and reliable energy storage solutions.

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Certification, Chile, Energy, Equipment, Financial, Grid, Renewables, South America, Storage battery, Suppliers

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