The phased approach reflects Innergex’s strategy to optimize returns in Chile’s merchant market, where daytime solar curtailment contrasts sharply with evening demand peaks. Both San Andrés batteries store excess midday solar generation and discharge during high-price evening hours, allowing the company to avoid grid congestion and capture capacity payments alongside energy arbitrage revenues. The original San Andrés I facility generates annual revenues between $6 million and $8 million with operating expenses of $400,000.
Innergex secured $50 million in project financing in April 2023 to develop 85 MW/425 MWh of battery storage at San Andrés, slightly below the 77 MW/385 MWh now operational. The discrepancy suggests the company completed construction under budget, consistent with statements that San Andrés I came in below projected costs.
At the Salvador site in Diego de Almagro, Atacama, the 20 MW/100 MWh Salvador II system is advancing toward commissioning. That project will complement Salvador I, a 50 MW/250 MWh facility inaugurated in October 2023 that was constructed for $72 million. Combined, the Salvador complex will reach 70 MW/350 MWh when Salvador II enters operation.
System integrator Prevalon Energy, a Mitsubishi Power Americas spinoff, supplied the technology for both San Andrés II and Salvador II. The company provided liquid-cooled lithium iron phosphate battery containers, power conversion systems, and energy management platforms certified to IEC cybersecurity and UL safety standards. Prevalon’s involvement represents continuity from the earlier Salvador I and San Andrés I deployments.
Innergex CEO Michel Letellier emphasized that battery storage enables the company to deliver 24/7 renewable energy while managing risk through portfolio diversification. Chile’s storage market is expanding rapidly as the country addresses massive solar curtailment in the north while phasing out fossil generation. The Atacama region’s exceptional solar irradiation creates ideal conditions for pairing generation with storage to shift output from low-value daytime hours to premium evening and early morning periods.
This article was curated and published as part of our South American energy market coverage.
