Long-duration energy storage is a “viable and strategic” asset for Chile’s power grid, but deployment requires concrete action, such as modernizing planning and operational mechanisms, according to new research.
The study was conducted by generator EDF power solutions and Centra, the energy transition unit of the faculty of engineering and science at Universidad Adolfo Ibáñez. It was launched last year and findings were discussed on Friday during a Centra-hosted event attended by representatives from industry, academia and the public sector.
The research focused on three key areas: quantifying the economic value that long-duration storage can deliver to Chile’s power system; determining whether investment can be recovered via current market mechanisms; and developing regulatory and policy recommendations.
The study concluded that internal rates of return of around 16% are achievable.
Most storage systems currently operating or under development in Chile are lithium-ion battery installations designed to inject power for about five hours. Capacity is expanding rapidly and is expected to reach 2GW in 2026 and potentially 10GW by 2030.
However, these systems are not suited to covering extended periods of low wind or solar output or meeting the 24/7 zero-emissions energy demands of certain industries.
“Energy storage is not just a technological tool; it is the condition that will enable Chile’s energy transition to be safe and sustainable,” EDF power solutions Chile CEO Joan Leal told BNamericas. “At EDF power solutions Chile, we are convinced that advancing storage capacity — and a modern regulatory framework to support it — is key to reducing curtailment, improving system resilience, and ensuring clean energy is available when it’s needed most. The transition is not just about accelerating change, but about doing it right: with stability, efficiency and forward-looking vision.”
Bernardo Severino, head of research at Centra, described long-duration storage as the “next technological frontier for achieving a 100% renewable energy mix.”
“Our study shows that these projects not only provide flexibility and security to the power system, but they can also be profitable if planning and operational mechanisms are modernized,” Severino said. “Chile is at a pivotal moment to plan the development of storage with a long-term perspective that complements the solutions already underway. Moving in that direction will strengthen system resilience while also leveraging potential synergies with sectors such as water, agriculture and tourism.”
Currently, lithium-ion technology dominates the market, geared primarily toward reducing curtailment and taking advantage of price arbitrage. While lithium systems can be configured for longer discharge durations, doing so reduces their competitiveness.
Long-duration technologies include pumped hydro, thermal storage – which could tap Chile’s world-class solar resources – sodium-sulfur batteries, CO₂-based systems such as that proposed by Italy’s Energy Dome, and green hydrogen and its derivatives. These systems are capable of injecting electricity for several hours, days or even weeks.
A notable initiative is AES Andes’ Alba project, a 560MW molten salt storage facility designed to convert a coal-fired plant into a clean energy unit. The project has an environmental license but faces opposition and remains in pre-construction.
Another proposal, Colbún’s 800MW pumped storage project Paposo, was suspended after encountering permitting challenges.
Chile’s leading presidential candidates have pledged to ease the flow of investment into strategic sectors like energy.
Energy Dome told BNamericas its technology could address renewable intermittency, enable 24/7 clean energy supply for mining, and help meet demand from future data centers. The company has signed a global agreement with Google and operates a 20MW/10-hour plant in Italy.
BNamericas will publish the full interview with Energy Dome in the coming days.
