Commissioning of Innergex’s largest storage facility to date
The facility is expected to generate CAN$11.4 million in annual revenues over its first full year of operation, which includes the contribution of capacity payments
Innergex Renewable Energy Inc. is pleased to announce that its 50 MW/250 MWh (5 hours) Salvador battery facility located on the site of Innergex’s existing Salvador solar facility in Northern Chile has begun operations and is injecting energy to the grid.
The Salvador battery facility is Innergex’s first utility-scale battery storage site and among the first installed in Chile. This achievement will not only serve Innergex in providing stable energy to the grid with its diversified portfolio of complementarity assets, it will also support the country in the decarbonization of its energy sources. Combined with the rest of the Corporation’s portfolio of wind, solar and hydro assets, this facility will support a growing supply demand for 24/7 renewable energy production and contribute to increasing returns on energy production.
“The commissioning of our largest storage facility to date is a significant addition to our portfolio that showcases our commitment to sustained growth and long-term value creation,” said Michel Letellier, President and Chief Executive Officer of Innergex. “The facility will enable Innergex to leverage surplus solar production and enhance revenue optimization by aligning with market trends and demand in Chile, while capacity payments will bring important additional revenues to the facility’s revenue streams. We regard battery storage as a very attractive technology for Innergex’s growth and we look forward to developing additional renewable energy and complementary battery storage initiatives to seize the abundant opportunities before us.”
The Salvador battery facility is located on the site of the 68 MW Salvador solar facility in the Atacama Desert, a region with one of the highest solar irradiance potential in the world. The renewable energy produced by the solar facility is stored during the day to be dispatched to evening hours to benefit from peak prices on the merchant market at times of greater demand. This enables the storage facility to avoid daytime congestion and support the grid upon peak energy demand and optimize the project’s returns.
The facility will start benefiting from capacity payments by the end of 2023. Combined with capacity payments, the Salvador battery facility is expected to generate annual revenues of approximately US$8.2 million (CAN$11.4 million) in its first full year of operation, while operating, general and administrative expenses are expected to reach US$0.9 million (CAN$1.2 million) during the same period.
The facility is already fully financed through Innergex’s green bonds issuance completed on August 5, 2022.
