Grenergy Secures $268 Million Investment For Hybrid Solar + Storage Plant in Chile

The Spanish renewable energy giant advances its Latin American strategy with a 342 MW solar farm paired with 1,034 MWh of battery storage in the Atacama region.

SANTIAGO, Chile – Spanish renewable energy developer Grenergy Renovables has closed a $268 million financing package to build a large-scale hybrid power plant in northern Chile, marking one of the most significant hybrid renewable projects to date in Latin America. The facility will combine 342 megawatts (MW) of solar photovoltaic generation with a 1,034 megawatt-hour (MWh) battery energy storage system (BESS), enabling round-the-clock clean electricity supply.

Grenergy's project – called "Oasis de Atacama", located in the Antofagasta region of Chile, has the highest level of solar irradiance anywhere on earth. To help overcome the barrier of intermittency that has limited renewable development historically, Grenergy has incorporated lithium-ion battery storage along with solar photovoltaic panels, allowing them to supply energy for up to 4 hours after the sun has set. This effectively allows solar energy to function as a "reliable baseload" power source.

A syndicate of international banks, including BNP Paribas, Natixis and Scotiabank, led the greens project financed facility for the funding. The project also has financing terms based on ESG (environment, social, governance) performance. Interest rates will be reduced based on how much the company meets defined milestones for community engagement and biodiversity protection.

As of May 2026, approximately 60% of the civil works needed for the first phase of the hybrid generation plant have been completed, with commercial operations expected to start in Q1 2027 and all commercial operations anticipated to be completed by late 2027. Once operational, this facility is expected to generate approximately 800 GWh of electricity per year, providing electricity to more than 200,000 households in Chile and reducing approximately 250,000 metric tons of CO₂ emissions on an annual basis.

"This is not just another solar farm. It's a blueprint for the future of renewable energy in regions with high solar potential," said David Ruiz de Andrés, executive chairman of Grenergy. "By pairing massive battery storage with solar, we are delivering firm, dispatchable clean energy that can compete with fossil fuel plants on reliability – and beat them on price and emissions."

Chile is aiming high with its decarbonisation goals. The Government anticipates to have 80% of its electricity generated via renewable sources by the end of 2030 and become entirely carbon neutral by 2050. At the same time, the national power transmission network (primarily SING, or Sistema Interconectado del Norte Grande) has been faced with a number of challenges, including congestion and curtailment of solar energy operations in instances where there was insufficient capacity along the network during periods of peak solar production.

The Oasis de Atacama battery system solves this problem by storing extra solar power produced during the middle of the day and discharging it in the evening when there is a spike in demand for electricity, but a drop in output from the solar facilities. This will help reduce the amount of congestion on the existing transmission lines while also improving overall efficiency within the grid itself.
"As a hybrid project, this one is critical in order to solve the 'duck curve' problems that have been associated with solar-heavy markets like California and Australia," remarked María Fernanda Valdés, an energy analyst at the Chilean Renewable Energy Association (ACERA). "This provides Chile with the opportunity to 'leapfrog' these regions by developing storage and generation together from the very beginning."

An investment of $268 million is expected to yield approximately 500 construction jobs at peak in construction activity, with the focus being on providing those jobs to Aboriginal communities in the Atacama Desert. Grenergy has agreed to enter into a community benefits agreement that includes funding for a pilot water desalinisation project (a necessity in one of the driest locations on the planet) and vocational training programs for personnel wishing to become renewable energy technicians.

Furthermore, Grenergy signed a 15-year power purchase agreement(s)(PPA) with two major mining companies operating in Chile, both of which will consume roughly 10% of the output of the plant in total, while also providing them the ability to reduce their overall carbon footprint as they complete some of their respective mining operations in Northern Chile using 24/7 renewable electricity to mine for copper and lithium.

The Oasis de Atacama is part of Grenergy's broader $1.6 billion investment pipeline in Chile, which includes four other hybrid projects currently in permitting or early development. The company already operates over 500 MW of solar capacity in Spain, but Latin America – particularly Chile and Colombia – has become its primary growth frontier due to favorable solar resources and supportive regulatory frameworks.

Chile's government recently streamlined permitting for storage-integrated renewables through its "Ley de Almacenamiento" (Storage Law), passed in late 2025, which allows BESS assets to be recognized as independent transmission assets eligible for regulated revenue streams. This policy certainty helped unlock the financing for Oasis de Atacama, according to Grenergy's CFO, Beatriz López, who noted that "off-takers and lenders needed to see a clear path to monetizing stored energy – now they have it."

Industry observers point to the project as a test case for large-scale hybrid solar-storage in emerging markets. If successful, it could accelerate similar developments across the Sun Belt – from northern Mexico to southern Peru and Brazil's northeast region.

"This is not just a Chilean story," said Ruiz de Andrés. "The world is watching how we integrate storage into the grid at this scale. We believe Oasis de Atacama will become a reference plant for the global energy transition."

By March 2023, Grenergy will be installing over 900,000 bifacial solar modules (which can capture light from both sides) and 3,200 battery racks from China's BYD. In addition to that, the project will have a real-time AI-based Energy Management System that will optimize charging and discharging cycles according to price signals as well as grid conditions.

Local permitting and environmental impact assessments (EIA) were completed by the end of 2025 after 2 years of consultation with the Atacameño community and Chile's environmental regulator (SEA). Some of the measures that will be implemented to mitigate the impact of this project include using dry-panel cleaning robots with minimal water use (which is extremely important due to the hyper-arid desert) and relocating native cacti and lizard habitats prior to clearing.

With the $268 million now secured, Grenergy says it remains on track to deliver the project on time and within budget. The company's stock rose 4.2% on the Madrid Stock Exchange following the announcement, reflecting investor confidence in hybrid renewable models.

Headquartered in Madrid, Grenergy Renovables (GRE: SM) develops, finances, and operates solar, wind, and storage projects across Europe and the Americas. The company has a global pipeline of 10.5 GW, with 2.1 GW in advanced stages of construction or ready-to-build. Since 2020, Grenergy has committed over €3 billion to renewable infrastructure.