Successful bid price of commercial energy storage project in Chile 2025

Why are project finance transactions increasing in Chile?

Fitch Ratings-Sao Paulo/New York-01 April 2025: Project finance transactions in Chile are expected to increase due to the recent commissioning of large battery energy storage systems (BESS), Fitch Ratings says. This should balance electricity supply and demand while reducing price volatility for renewable energy generators.

Are battery energy storage systems a viable alternative for Chilean power producers?

With transmission lines at overcapacity and permitting delays slowing the development of new grid infrastructure, battery energy storage systems (BESS) have surged as a profitable alternative for Chilean power producers.

How many Bess projects are there in Chile?

This momentum is reflected in the data: AMI estimates that there is a 7.7 GW pipeline of BESS projects in Chile, far and away the most advanced front of the meter (FTM) storage market in Latin America. 1 Only 505 MW of BESS projects are currently operational in the entire region.

How much battery storage does Chile have?

Chile has an operational installed capacity of approximately 1GW in batteries, and another 3GW is under construction. Battery storage has been largely financed by bank lending in recent years, but we believe larger projects could increase the scope for bond financing.

How many EPC agreements has Metlen signed in 2025?

Specifically, METLEN has signed and executed in the beginning of 2025 3 individual EPC agreements that encompass the implementation of a total 190,5MWp of Solar energy capacity and more than 2,500MWh of Battery Energy Storage System (BESS) capacity. All projects are set to be delivered no later than Q1 2026.

How do energy storage projects make money?

We expect energy storage projects to benefit from stacking, or diversifying, their sources of revenue. Many projects will derive 40%-50% of their revenue from relatively stable capacity payments. The remaining revenues will likely come from contracted power purchase agreements or arbitrage.