EDP ​​inaugurates its first battery complex in South America in Chile.

EDP ​​has officially started operations at Punta de Talca BESS in Chile, its first battery storage complex in South America.

Integrated into the Punta de Talca Wind Farm, in the municipality of Ovalle, the project received investments of US$ 44 million and has an installed capacity of 240 MWh, enough to store an average of 60 GWh per year and supply more than 30 homes in the region.

The system was designed to capture surplus renewable energy generation during periods of lower demand and return it to the grid during peak supply times. In practice, the project transforms into useful energy part of the production that was previously wasted due to operational limitations of the system.

Batteries to combat curtailment

The main objective of the project is to reduce the effects of curtailment, a mechanism that forces generators to temporarily interrupt their production due to restrictions in the electrical system.

According to EDP, the expectation is to practically eliminate the physical power cuts recorded by the Chilean wind farm, which currently amount to about 11% of annual generation.

Furthermore, storage will prevent energy produced during periods of oversupply from being sold at near-zero prices, a recurring situation in the Chilean market.

The strategy consists of charging the batteries precisely when prices are depressed and discharging them during the night, when demand increases and prices tend to be higher.

In addition to optimizing asset profitability, the solution increases the flexibility of the electrical system, provides firm power, and reduces dependence on fossil fuels.

Opportunities in Brazil

During a conversation with journalists present at the system's inauguration, the president of EDP for South America, João Brito Martins, indicated that the experience gained in Chile could serve as a platform for future initiatives in the Brazilian market.

The executive emphasized that the company is closely monitoring the first Brazilian battery auction, scheduled for December, and understands that the combination of renewable generation and storage is likely to gain traction in the region given the increasing complexity of electrical systems.

According to the president of EDP South America, although there are points in the recently approved regulation by ANEEL (National Electric Energy Agency) with which the company does not fully agree, the rules already defined allow agents to adjust their strategies to compete in the market under the established conditions. According to him, the company will seek to position itself as competitively as possible within this new regulatory environment.

Auction charge

Among the aspects observed by the company in the design of the Brazilian auction is the definition of the charge that will be paid by the generators to cover the cost of contracting the storage systems.

According to João Brito Martins, this is one of the most sensitive variables for the economic viability of projects, since the way this cost is distributed will have a direct impact on the attractiveness of investments.

Nevertheless, the executive expressed expectation that the remaining uncertainties will be clarified in the coming months, before the auction takes place.

Another point mentioned by the president concerns the tariff treatment of storage systems. Although he acknowledged the progress made by ANEEL In ruling out double billing for projects dispatched by the ONS (National System Operator), he noted that the effect of network usage tariffs will continue to be an important component in project feasibility analyses.

Regional learning

The Chilean complex represents EDP's debut in energy storage projects in Latin America, but not globally. The group already has approximately 550 MW of batteries in operation.

Last week, the group announced the completion of Flatland Energy Storage, currently its largest operational battery project.

Developed in the state of Arizona, in the United States, in partnership with SRP (Salt River Project), the project includes a 200 MW and 800 MWh storage system, with the capacity to supply the equivalent of approximately 44,5 homes.

According to the company, the project was designed to reinforce the reliability of supply during peak demand periods and highlights the growing importance of large-scale storage systems to increase the flexibility and resilience of electrical systems.

Curtailment in Brazil

In Brazil, the company also faces challenges that drive the advancement of energy storage. According to EDP executives present at the inauguration, approximately 13% of the company's renewable generation in the country will be cut in 2025, with an estimated financial impact of US$40 million.

For EDP, the Punta Talca project serves as an operational laboratory and a concrete benchmark for a technology that is poised to gain prominence in Latin American markets, especially as the growth of renewable energy sources increases the need for flexibility, reliability, and better utilization of the energy produced.

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