Zelestra Secures Solar-Plus-Storage PPA with Abastible in Chile

Zelestra has signed a long-term PPA with Abastible for a solar-plus-storage plant in Northern Chile, featuring 220MW of solar capacity and 1GWh of BESS. This is Abastible’s second solar-plus-storage PPA in over a month. Chile’s growth in co-located solar and BESS projects responds to curtailment and transmission issues, while projections show significant solar PV expansion in South America.

Zelestra, a Spanish renewable energy developer, has entered into a long-term power purchase agreement (PPA) with Abastible, a gas provider in Chile, for a solar-plus-storage facility. This hybrid plant, located in the Tarapacá region, boasts 220MW of solar capacity coupled with a 1GWh battery energy storage system (BESS), with construction already underway.

The collaboration aims to supply Abastible with night-time power while enhancing its carbon-free energy portfolio. This agreement marks Abastible’s second PPA for solar-plus-storage within a month, following a 15-year PPA with Verano Energy for an 83MW solar PV and 660MWh BESS project scheduled for completion by the end of 2026.

Zelestra operates in multiple Latin American countries, including Colombia, Peru, and Ecuador, and holds a development pipeline of 7GW, consisting of 56 projects. Chile has experienced a significant upturn in co-located BESS and solar PV projects due to persistent curtailment and transmission difficulties, with almost 6TWh of capacity curtailed in 2024.

Given these challenges, co-locating BESS with solar is increasingly viewed as essential. As highlighted by Alejandro McDonough, managing director at Wärtsilä Chile, these solutions are critical for mitigating financial losses experienced by solar assets. Reports from Wood Mackenzie suggest that Chile and Brazil will lead South America in solar PV growth, projecting an additional 160GW of capacity by 2034.

Despite the positive outlook, financial uncertainties must be addressed before BESS can maximize its potential in Chile and other Latin American countries, where regulatory frameworks remain inadequate for fostering growth.

In summary, Zelestra’s recent PPA with Abastible underscores the growing trend of integrating solar and energy storage in Chile. This partnership indicates a shift towards sustainable energy sources and reflects the increasing necessity of BESS amid operational challenges in the region. Additionally, while challenges remain on the regulatory front, forecasts exhibit a promising future for solar PV investments in South America, particularly in Chile and Brazil.

Original Source: www.pv-tech.org