Chile (SEN / Coordinador Electrico) Energy Storage Analysis

The Chilean National Electric System (SEN) is widely considered the fastest-growing and most attractive energy storage market in Latin America. Blessed with world-class solar irradiation in the Atacama Desert and massive domestic lithium reserves, the grid is experiencing unprecedented solar curtailment during midday hours. The Coordinador Eléctrico Nacional (CEN) manages the dispatch, and the regulatory framework strongly incentivizes storage through capacity payments and deep daily arbitrage opportunities. To combat the severe 'duck curve' and transmission bottlenecks preventing northern solar from reaching central load centers, the government passed a landmark energy storage law allowing standalone systems to participate fully in the wholesale market.