SUSI Partners, through its SUSI Energy Transition Fund (SETF), has committed to funding the development of a substantial battery energy storage system (BESS) portfolio in central-southern Chile.
This agreement strengthens the existing partnership with local developer BIWO Renovables (BIWO), further diversifying their collaborative efforts in renewable energy projects within the country.
Transaction Details and Project Scope
The transaction entails SETF’s investment in a portfolio comprising 22 BESS projects, aiming for a total capacity of 860 MW and up to 3.5 GWh.
The majority of these projects are in advanced development stages, with the first batch expected to be ready for construction in the first half of 2025.
Strategic Locations and Regulatory Advantages
BIWO, the developer of all these projects, has secured limited interconnection capacity in strategically advantageous locations.
As renewable energy sources like solar and wind become increasingly prevalent in Chile’s power grid, standalone BESS offer a cost-effective and swift solution to address grid stability challenges.
This investment also aligns with Chile’s recently updated capacity market regulations, which emphasize the need for energy storage solutions.
Partnership Expansion and Strategic Growth
This deal marks a significant step in the ongoing collaboration between SUSI and BIWO.
Their partnership already encompasses distributed generation projects under Chile’s PMGD price stabilization regime and utility-scale hybrid solar PV and battery storage projects.
The addition of standalone BESS projects represents a natural progression for their partnership, leveraging the expertise of both entities in the energy sector.
Capitalizing on Expertise and Local Knowledge
The transaction highlights SUSI’s proficiency in combining its energy transition investment acumen with portfolio and partner companies’ established local networks and market insights.
This enables access to exclusive project pipelines and the ability to swiftly capitalize on specific opportunities in the Chilean market.
Diversified Energy Transition Portfolio
SETF, the firm’s flagship evergreen infrastructure equity fund, maintains a well-diversified portfolio across various energy transition themes.
This includes clean energy generation, energy efficiency, battery energy storage, customer energy solutions, and electric vehicle charging infrastructure.