Metlen and Glenfarne have agreed on a landmark 588 MW solar and 1610 MWh battery energy storage system (BESS) projects portfolio acquisition in Chile. Metlen’s 588 MW solar projects are up and running, while the 1610 MWh BESS are still under construction. According to Metlen, the BESS projects in Chile will be commissioned by 2026. Closure of USD 815 million transaction will also take place once the BESS are operational.
Metlen solar and BESS project portfolio in Chile
Greece-based energy and metals company, Metlen, has key solar and BESS projects in Chile. These are strategically situated in Chile’s Sistema Electrico Nacional (SEN), and benefit from geographical diversification and multiple interconnection nodes. This, according to the assets manager, allow for “portfolio optimization”.
The portfolio includes several solar projects spread across three regions in Chile. These include the 227 MW Tocopilla solar project in Antofagasta region that was completed early this year. The 167 MW solar project in Tamarico that started commercial operations early this year, and the 109 MW Willka solar project in Coquimbo that was launched in December 2023. Also situated in the region is the 86 MW Dona Antonia solar project that has been operational since August 2024.
According to Metlen, each of these solar projects in Chile will have BESS by next year. To add sustainability values to the renewable energy projects, they will serve more than 800,000 homes, and cut down CO2 emissions by over 240,000 tons annually.
A look at the strategic SEN and Portfolio Optimization
The solar and BESS projects are located in the Sistema Electrico Nacional (SEN) belt. SEN is Chile’s main national electricity grid and covers the energy needs of up to 97% of the country’s population. Handling over 34 GW of installed energy capacity, the SEN stretches for around 3,100 kilometers and is also one of the largest interconnected systems in the world.
To put Metlen’s “portfolio optimization”description of its its solar and BESS projects portfolio into context, we will have to look at their geographical locations and operational value.
Geographical diversification
Metlen’s solar and BESS projects are located in diversified locations across Chile’s SEN. This includes locations like Antofagasta, Atacama, and Coquimbo. This is strategic to reduce the risks of effects from localized weather patterns and events. This is will allow for more consistent solar energy production in the long run.
Multiple interconnection nodes
Grid congestion reduction can also be reduced by what Metlen calls “multiple interconnection nodes” for the solar and BESS projects in Chile that New York-based energy and infrastructure assets manager Glenfarne is to acquire.
The multiple nodes connecting to substations and transmission nodes reduce overload at any one point along the grid. They also put the transmission system in balance, when, in principle, they dynamically respond to the grid’s demands.
Additionally, while responding to grid demands, they also bring in the financial aspect that warrants their acquisition. Their dynamic response allows for the arbitrage of the energy demand opportunities and as a consequence, allows for the maximization of sales and profits.
The 1610 MWh Bess projects
Glenfarne is also acquiring Metlen’s 1610 MWh BESS projects in Chile. Firstly, their massive capacity allow for optimization. Like all battery storage systems, this one will store excess solar energy especially during low-demand periods. The BESS also discharge during periods of increased energy demand e.g., evenings. Alongside this will be the less spoken of functions like, energy frequency regulation and voltage support.
As part of fulfilling its global Asset Rotation Program for renewable energy projects, Metlen continues to help push for sustainability efforts that are already geared up across the globe. Commenting on the acquisition, founder and CEO of Glenfarne, Brendan Duval, also said the transaction aligns with their mission of supporting Chile’s energy transition.
