Grenergy Renovables is set to expand its Oasis de Atacama battery project in Chile through the acquisition of a 1GW solar portfolio from Repsol and Ibereólica.
The Spanish independent power producer (IPP) will invest $128m as part of the deal.
The portfolio includes a 77MW solar project, along with 923MW of photovoltaic (PV) projects. These projects are currently in various stages of development.
Besides, it has an already built and energised 1GW interconnection line. This will enable the connection of the upcoming projects.
Grenergy’s investment will help increase the Oasis de Atacama project’s battery storage capacity from 4.1GWh to 11GWh. In addition, the battery project’s solar PV generation capacity will double from 1GW to 2GW.
The renewable energy company’s acquisition is expected to facilitate the expansion of the battery project with two new phases.
Grenergy executive chairman David Ruiz de Andrés said: “This is just the first step of what is to come. Battery investments are going to multiply globally, and this project will allow us to be a benchmark in the sector.”
The Oasis de Atacama project, which is currently under construction, is divided into five phases. The first phase of the battery project is scheduled to be connected by the end of this year, with the remaining phases expected to be commissioned between 2025 and 2026.
The Oasis de Atacama battery facility is anticipated to generate approximately 5.5TWh of energy annually. This output is equivalent to the annual consumption of a city the size of Madrid.
Besides, Oasis de Atacama will help in the reduction of 1.4 million tonnes of carbon dioxide emissions.
Despite the expansion, Grenergy confirmed that no additional financial resources will be required to carry out the investment, as it aligns with the company’s financial plan outlined during its Capital Markets Day. The plan calls for an investment of €2.6bn between 2023 and 2026.
Grenergy has secured energy sale agreements for the first four phases of the Oasis de Atacama battery project and is in advanced negotiations for the remaining phases.
Recently, the company achieved financial closing for the first two phases of the project, securing $345m from BNP Paribas, Société Générale, Natixis, Bank of Nova Scotia, and SMBC.
Additionally, Grenergy has signed an agreement with BYD for the supply of 3GWh in large-scale storage systems.
