The first two phases of Oasis de Atacama, the largest solar power and energy storage project in Latin America, have come on stream in Chile’s Antofagasta Region. As part of these phases, 221 megawatts of solar panels have been installed along with a 1.2 gigawatt-hour battery storage system that can provide 6.2 hours of power. The project is being implemented by ContourGlobal, a subsidiary of the investment fund KKR, which acquired the first three phases from the Spain-based independent energy producer Grenergy.
The third phase, which will provide an additional 231 megawatts of solar power and 1.3 gigawatt-hours of storage capacity, is expected to become fully operational in the second half of this year. Once all seven phases are completed, Oasis de Atacama will reach the installed solar power capacity of 2 gigawatts and the battery storage capacity of 11 gigawatt-hours.
The proactive development of solar projects can be explained by increasing difficulties in the operation of Chile’s energy system, including grid overloads and forced restrictions on power generation. In 2024, the country’s solar and wind generation went down by 6 terawatt-hours, twice as much as in the previous year. At this juncture, the expansion of energy storage systems is becoming a key solution to the energy supply problem.
Other market players are joining alternative energy projects as well. Atlas Renewable Energy has signed a long-term agreement with the Chilean energy company Colbun to implement an off-grid battery storage system project in the Antofagasta Region. The 230-megawatt project, with a storage volume of 920 megawatt-hours, is designed for 4-hour operation and slated to be launched in 2027.
Experts point out that the joint development of solar generation and energy storage is becoming vital to Chile, especially given the growing production volumes and limited grid capacity. Still, despite high technological readiness, further development of the country’s energy system is constrained by the lack of an adequate regulatory framework and efficient financial mechanisms.
Solar and storage projects are implemented primarily in the Antofagasta Region, which is located in the Atacama Desert, one of the driest and sunniest places on the planet. It has some of the highest levels of solar radiation in the world, making the region exceptionally well-suited to solar generation. Antofagasta is also home to much of Chile’s mining industry.
