DNV supports Grenergy in securing financing for world's largest battery storage project in Chile

Grenergy Renovables (Grenergy), supported by DNV, secured financial close for the first phase of the world's largest battery storage project. Located in northern Chile, Oasis de Atacama is projected to power over 145,000 homes annually and reduce CO2 emissions by more than 146,000 tons.

The project, which should be fully operational in 2026, is divided into five phases. When completed, its storage capacity will be around 4.1 gigawatt hours (GWh). The first two phases, for which financing has just been closed, totaling 1.24 GWh of batteries dedicated to storing surpluses from Grenergy’s photovoltaic plants. 

David Ruiz de Andrés, Executive Chairman of Grenergy, said that, "this operation demonstrates the banks’ confidence in the hybridisation of solar plants with storage, and in Grenergy's business model, which continues to make progress in becoming a world leader in storage." 

As market consutant, DNV provided due diligence services to Grenergy, aiding in securing $345 million from international banks, including BNP Paribas, Natixis, Société Générale, The Bank of Nova Scotia, and SMBC. DNV's analysis and expertise were crucial in meeting funding requirements and ensuring regulatory compliance, as they supported Grenergy throughout the financing process with market analysis, due diligence, PPA risk assessment, BESS optimisation, and dispatch strategies. DNV's battery modeling tools demonstrated the feasibility and attractiveness of large-scale BESS projects in Chile.  

Santiago Blanco, Executive Vice President & Regional Director for Latin America, Energy Systems at DNV, commented, "Chile is renowned for its solar potential and dedication to decarbonisation and represents a promising market for solar and storage power. This project is a significant step towards enhancing energy storage capabilities in the region and aligns with our commitment to supporting sustainable energy initiatives. Successful financing underscores the importance of comprehensive due diligence and expert analysis in renewable energy projects." 

The project aligns with Chile's goals to achieve carbon neutrality by 2050 and become a regional leader in solar technology. By 2035, the country plans to export solar solutions, including storage systems, and develop a resilient energy sector to integrate renewable sources and reduce emissions. To manage the variability of solar and wind energy production and reach these ambitious goals, Chile needs additional energy storage solutions.  

DNV's 2023 Energy Transition Outlook projects renewables will grow more than one percentage point annually from 2024, reaching a 52% non-fossil share by 2050, up from 20% today. Solar alone is expected to comprise 17% of the global energy mix by 2050. As renewables dominate, power system efficiency is predicted to increase from 44% in 2022 to 70% by 2050. This highlights the significance of projects like Oasis de Atacama in contributing not only to the energy transition at the local and regional levels, but to the global shift towards renewable energy. 

Santiago Blanco, Executive Vice President & Regional Director for Latin America, Energy Systems at DNV, commented, "Chile is renowned for its solar potential and dedication to decarbonisation and represents a promising market for solar and storage power. This project is a significant step towards enhancing energy storage capabilities in the region and aligns with our commitment to supporting sustainable energy initiatives. Successful financing underscores the importance of comprehensive due diligence and expert analysis in renewable energy projects."