Zelestra Secures Significant Solar-Plus-Storage Agreement in Chile

Zelestra has signed a power purchase agreement with Abastible for a solar-plus-storage facility in Chile, which includes 220MW solar capacity and 1GWh BESS. This marks Abastible’s second recent PPA, reinforcing the trend of integrating energy storage with solar projects due to curtailment issues. Chile is on track to lead solar PV expansion in South America, although regulatory challenges for battery storage persist.

Zelestra, a Spanish renewables developer, has secured a long-term power purchase agreement (PPA) for a solar-plus-storage facility in the Tarapacá region of Chile, in collaboration with gas provider Abastible. The hybrid plant will feature 220 megawatts of solar capacity and a 1 gigawatt-hour battery energy storage system, with construction already underway.

This agreement marks Abastible’s second venture into solar-plus-storage agreements within a month. In February, they entered a 15-year PPA with Verano Energy for a project producing 83 megawatts of solar power and incorporating a 660 megawatt-hour BESS, anticipated to commence operations by the end of 2026.

Zelestra has an extensive presence throughout Latin America, including Colombia, Peru, and Ecuador, boasting a development pipeline of 7,000 megawatts across 56 projects. The company’s initiatives align with the rising trend of integrating battery energy storage systems alongside solar photovoltaic installations in Chile.

Chile is experiencing a significant rise in co-located BESS and solar PV projects, addressing increasing curtailment and transmission challenges. In 2024, nearly 6 terawatt-hours of capacity were curtailed due to these issues, as reported by ACERA. Experts have labeled the integration of BESS with solar assets as crucial for revenue stability in the region.

According to a report by Wood Mackenzie, Chile and Brazil are projected to lead solar PV deployments in South America, with an estimated 160 gigawatts of new solar capacity by 2034, primarily stemming from these two countries. Despite this potential, financial uncertainties and regulatory hurdles continue to hinder the expansion of BESS in Latin America and the Caribbean, as discussed by the publication Energy-Storage.News.

Zelestra’s PPA with Abastible signals a progressive step towards enhancing renewable energy infrastructure in Chile by integrating solar and battery storage solutions. The project contributes to Abastible’s commitment to carbon-free energy, reflecting a broader trend in the region. As Chile and Brazil lead solar PV growth in South America, overcoming financial and regulatory barriers for energy storage remains essential for future developments.

Original Source: www.pv-tech.org