DNV and Atlas Renewable Energy Secure Funding for Major Battery Storage Project to Enhance Chile’s Green Energy Transition

DNV and Atlas Renewable Energy Secure Funding for Major Battery Storage Project to Enhance Chile’s Green Energy Transition

(IN BRIEF) DNV has collaborated with Atlas Renewable Energy to secure $289 million in financing for its first standalone Battery Energy Storage System (BESS) project in Chile. The funding, obtained through senior loans and credit lines from BNP Paribas and Crédit Agricole CIB, will support the Battery Energy Storage System del Desierto, which has a storage capacity of 800 MWh and aims to stabilize the energy grid while reducing renewable energy curtailment. DNV conducted comprehensive due diligence, market analysis, and risk assessments, which were crucial in gaining investor confidence. The project is part of Chile’s broader green energy transition, which leverages the solar potential of the Atacama Desert and aims for carbon neutrality by 2050. Currently, wind and solar energy account for about 33% of Chile’s electricity demand, and the country plans to enhance its energy storage solutions to support further renewable integration.

(PRESS RELEASE) BÆRUM, 8-Oct-2024 — /EuropaWire/ — DNV has successfully assisted Atlas Renewable Energy in obtaining $289 million in financing for its inaugural standalone Battery Energy Storage System (BESS) project in Chile. This financing, facilitated through senior loans and credit lines from BNP Paribas and Crédit Agricole CIB, will support the development of the Battery Energy Storage System del Desierto, poised to be one of Latin America’s largest energy storage projects, featuring an impressive storage capacity of 800 MWh.

The initiative is designed to enhance the stability of Chile’s energy grid and mitigate renewable energy curtailment, with expectations to contribute 280 GWh of electricity to the grid annually. This project not only aims to improve grid reliability but also seeks to reduce carbon emissions in a region facing challenges due to intermittent renewable energy sources.

DNV played a vital role throughout the financing process, conducting thorough due diligence on market conditions and evaluating risks associated with a long-term energy purchase agreement. Additionally, the consultancy performed battery system optimization and dispatch analysis, which were crucial in securing investments from global financial institutions. DNV’s expertise has enabled Atlas to expedite the development of their battery storage project and solidify its status as a leader in standalone energy storage, positioning the company as a significant provider of clean energy solutions for large-scale energy consumers in Latin America.

Marian van den Berg, Senior Project Consultant for Energy Systems at DNV, remarked, “This project underscores our proficiency in market due diligence for energy storage and represents a significant milestone for Chile’s energy landscape. Our comprehensive market analysis and risk assessments were key in instilling investor confidence, proving that standalone battery storage is a viable investment opportunity in Latin America.”

Santiago Blanco, Executive Vice President and Regional Director for Latin America, Energy Systems at DNV, further stated, “The Battery Storage System del Desierto will establish a new standard for energy storage projects in the region. This development addresses critical energy challenges in Chile while laying the groundwork for future sustainable energy investments. DNV’s contribution was instrumental in securing the necessary financing to realize this project.”

Chile is leading Latin America’s green energy transition, capitalizing on the exceptional solar intensity of the Atacama Desert, the highest in the world. Currently, wind and solar energy contribute approximately 33% of Chile’s electricity demand, surpassing thermal generation, bolstered by a strong clean energy agenda aimed at achieving carbon neutrality by 2050. According to the World Economic Forum’s 2024 report, Chile ranks among the top 20 global performers in energy transition. The country is also looking to export solar solutions, including storage systems, by 2035 while developing a resilient energy sector that integrates renewables and curbs emissions. To manage the variability of solar and wind energy, Chile requires additional reliable energy storage solutions.

About DNV
DNV is an independent assurance and risk management provider, operating in more than 100 countries. Through its broad experience and deep expertise DNV advances safety and sustainable performance, sets industry standards, and inspires and invents solutions.

Whether assessing a new ship design, qualifying technology for a floating wind farm, analyzing sensor data from a gas pipeline or certifying a food company’s supply chain, DNV enables its customers and their stakeholders to manage technological and regulatory complexity with confidence.

Driven by its purpose, to safeguard life, property, and the environment, DNV helps its customers seize opportunities and tackle the risks arising from global transformations. DNV is a trusted voice for many of the world’s most successful and forward-thinking companies.

In the energy industry
DNV provides assurance to the entire energy value chain through its advisory, monitoring, verification, and certification services.  As the world’s leading resource of independent energy experts and technical advisors, the assurance provider helps industries and governments to navigate the many complex, interrelated transitions taking place globally and regionally, in the energy industry. DNV is committed to realizing the goals of the Paris Agreement, and supports customers to transition faster to a deeply decarbonized energy system.

Media Contacts:

Neil James Slater
Head of Media Relations, Energy Systems
Phone: +44 2038165702

Penda Sall
Media Relations, Energy Systems
Phone: +33 651 69 88 64

SOURCE: DNV