Chile Greenlights 280 MW Solar Project With Battery Storage

Chile's energy future just got brighter with approval of a new substation that will connect a groundbreaking solar and battery project to the national grid.

The National Energy Commission has greenlit the Terrazas sectioning substation in the Coquimbo Region, about 370 kilometers north of Santiago. This critical piece of infrastructure will enable a hybrid renewable energy project combining 280 megawatts of solar panels with a massive 1,240 megawatt-hour battery storage system.

The project, developed by renewable energy company Korkia, represents a new generation of clean energy infrastructure. Unlike traditional solar farms that only generate power when the sun shines, this hybrid approach stores excess energy in batteries for use during evenings and cloudy days.

"This authorization is a significant milestone because it enables critical grid infrastructure to move forward when timing is essential," said Rodrigo Ackermann, Vice President for Latin America at Korkia. The new 220-kilovolt substation has been designed with extra capacity to accommodate future renewable energy projects in the region.

Location matters tremendously for this project. The Ovalle area boasts some of the highest solar radiation levels in Chile and ranks among the best solar conditions globally. The site also sits close to northern Chile's mining operations and major energy demand centers, making it ideal for both generation and distribution.

The Ripple Effect

This project signals how renewable energy is maturing beyond simple solar and wind farms. Battery storage addresses one of the biggest challenges facing clean energy: reliability. By storing power for use when the sun isn't shining, hybrid projects like Terrazas help renewable energy compete with traditional fossil fuel plants that can generate power on demand.

The impact extends well beyond environmental benefits. When operations begin in late 2027, the project will supply clean electricity to approximately 150,000 Chilean households annually. That's an entire city's worth of families powered by the sun and supported by cutting-edge battery technology.

Chile's renewable energy sector continues accelerating, with Korkia alone managing a 15-gigawatt pipeline of mature development projects globally. The company has achieved multiple milestones in 2026, including environmental approval for another 150-megawatt battery project in Chile and successful project exits in Italy and permits secured in Romania and Canada.

The authorization comes at a crucial time as Chile pursues an ambitious energy transition away from fossil fuels while meeting growing electricity demand from homes, businesses, and the country's vital mining sector.