Key figures of the climate change mitigation activitiy
Colbún S.A.
Atacama Region, Chile
Electricity consumers in Chile, through improved grid stability and reduced emissions; Renewable energy generators, by reducing curtailment and increasing utilization of solar power; The national electricity system, through enhanced flexibility and reliability
Authorised, in implementation
In Chile, the electricity sector has reduced its greenhouse gas emissions by 40 % during the last ten years thanks to a rapid growth of variable renewable energy (solar and wind).This has also led to significant renewable energy curtailment during daytime – i.e. large amount could not be fed into the grid – and continued reliance on fossil-fuel generation at night. DAS BESS addresses this challenge by enabling the temporal shifting of solar electricity to nighttime hours.
The project installs a 228 MW / 912 MWh lithium-ion Battery Energy Storage System adjacent to Colbún´s Diego de Almagro Sur solar power plant. The BESS charges primarily during periods of excess solar generation and discharges electricity during the evening and nighttime peak demand, when the system would otherwise rely on gas, diesel or coal-fired units. In doing so, the project directly displaces fossil-fuel-based electricity generation reducing CO₂ emissions.
The project is owned and operated by Colbún S.A. and employs grid-forming technology, providing additional services to the electricity system such as frequency regulation and reserve capacity, thereby strengthening the systems reliability.
DAS BESS is additional to Chile’s NDC as energy storage is not mandated by law and contributes to voluntarily accelerate the mitigation goals via Article 6 of the Paris Agreement. Moreover, the Ministries of the Environment and Energy in Chile have defined grid forming BESS as a prioritized mitigation typology for Article 6 mechanism in support of the NDC.
The support from the KliK Foundation and the resulting carbon revenues have made it possible to bring forward the required investment to deliver this project.
"Carbon credits represent a clear opportunity to channel private capital toward climate action, helping to close the financing gap that projects are unable to cover for the decarbonization of the sector. For Colbún, participating in this new strategic instrument allows us to bring investment forward in order to deliver the project."
DAS BESS delivers environmental, social and economic co-benefits beyond greenhouse gas mitigation, contributing to several Sustainable Development Goals, including SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation and Infrastructure), and SDG 13 (Climate Action):
Environmentally, it reduces renewable energy curtailment, contributing to a cleaner and more resilient electricity system. By decreasing the use of fossil-fuel generation during peak hours, it also lowers local air pollution.
Socially, the project strengthens energy security for consumers improving the stability of the electricity system, benefiting households and industries through reduced outage risks.
Technologically, the project introduces advanced grid-forming battery storage solutions, supporting innovation and knowledge transfer within Chile’s energy sector.
Finally, the project supports Chile’s long-term decarbonization strategy by demonstrating the role of large-scale storage in a highly renewable electricity system.