Colbun Initiates $500M Solar and Storage Project in Chile

• Colbun SA embarks on a transformative journey with its Encanto project—a 249.7-MW solar farm and cutting-edge battery storage, propelling Chile's renewable energy future with a $500 million investment.

Chilean utility Colbun SA has initiated the environmental permitting process for its Encanto power project in the O’Higgins region, aiming to secure approval for a 249.7-MW solar farm alongside a 260-MW battery energy storage system (BESS). The estimated investment for this venture is USD 500 million, as indicated in Colbun’s application to O’Higgins environmental authorities.

The Encanto project will feature over 349,000 photovoltaic modules, a substation, and a transmission line, all to be built on private land in Marchigue. Construction is slated to begin in April 2026, marking a significant step for renewable energy development in Chile.

What are the key features and timelines of Colbun's Encanto solar power project?

Key Features and Timelines of Colbun's Encanto Solar Power Project

Location:

• Situated in the O'Higgins region of Chile, specifically in Marchigue.

Capacity:

• The project includes a solar farm with a capacity of 249.7 megawatts (MW).
• It will be integrated with a 260 MW battery energy storage system (BESS) to enhance grid stability and provide reliable energy supply.

Investment:

• The total estimated investment for the Encanto project is approximately USD 500 million.

Technology:

• The project will utilize over 349,000 photovoltaic (PV) modules, which will convert sunlight into electricity.

Infrastructure:

• A dedicated substation will be constructed to manage electricity distribution.
• A new transmission line will be built to connect the solar facility to the grid, facilitating energy dispatch.

Timeline:

• Environmental Permitting Process: Currently underway, as Colbun has initiated the necessary steps to obtain environmental approvals.
• Construction Start Date: Scheduled to commence in April 2026.
• Operational Timeline: Expected to start operations in 2028, aligning with Chile's renewable energy goals.
  

Environmental Impact:

• The project aims to contribute to Chile's commitment to increasing its renewable energy capacity, reducing reliance on fossil fuels, and achieving sustainability targets.

Economic Benefits:

• The Encanto project is expected to create jobs during the construction phase and potentially in ongoing operations.
• It will contribute to local development and increase the energy supply for both residential and commercial consumers in the region.

Integration with Renewable Goals:

• The project aligns with Chile's broader strategy to derive 70% of its energy from renewable sources by 2050, supporting national and international climate commitments.

Community Engagement:

• Colbun plans to involve local communities in the project’s development, including consultations to address concerns and potential impacts.

These key features and timelines underline the significance of Colbun's Encanto project in advancing renewable energy initiatives in Chile, fostering economic growth while addressing environmental goals.