Landmark Financing Propels Chile's Clean Energy Transformation

In a significant advancement for Latin America's renewable energy landscape, Atlas Renewable Energy has secured $510 million in financing for its groundbreaking Estepa hybrid project in Chile, marking the largest financing package in the company's history. The ambitious project integrates 215 MW of solar capacity with 418 MW of battery energy storage systems, creating a powerful clean energy solution designed to provide stable, dispatchable power to Chile's energy-intensive industries. DNV, a global quality assurance and risk management company, played an instrumental role in facilitating this landmark financing through comprehensive technical and commercial advisory services. The financing consortium includes several major international financial institutions, including Crédit Agricole, BNP Paribas, DNB, SMBC, also The Bank of Nova Scotia, demonstrating strong investor confidence in hybrid renewable projects. Industry analysts note that this transaction represents a pivotal moment in renewable energy financing in the region, as it validates the bankability of large-scale battery storage when paired with solar generation. The successful closing of this financing package signals growing market maturity for hybrid renewable projects, which are increasingly seen as critical components in achieving national decarbonization goals while maintaining grid reliability.

Industrial Power Demands Meet Renewable Solutions

The Estepa project directly addresses one of the most persistent challenges in renewable energy adoption: providing consistent, reliable power to industrial operations that require uninterrupted electricity supply. Chile's mining and manufacturing sectors, which form the backbone of the nation's economy, have historically relied on conventional power sources due to their stability requirements. The hybrid nature of the Estepa project transforms this paradigm by combining solar generation with substantial battery capacity, enabling the delivery of consistent power regardless of weather conditions or time of day. Anchor clients for the project include Codelco, Chile's state-owned copper mining company also the world's largest copper producer, also Colbún, a major Chilean energy company. These power purchase agreements with high-profile industrial customers demonstrate growing confidence in hybrid renewable systems to meet demanding industrial requirements. Energy market experts highlight that the project represents a crucial proof-of-concept for industrial decarbonization, showing how renewable energy can directly serve energy-intensive industries without compromising operational reliability. When operational in late 2026, the facility will generate enough clean electricity to power the equivalent of 250,000 Chilean homes annually, significantly contributing to Chile's ambitious target of achieving 70% renewable electricity by 2030.

DNV's Technical Expertise Unlocks Complex Financing

Securing financing for hybrid renewable projects presents unique challenges due to their technical complexity also evolving revenue models. DNV's comprehensive advisory services proved crucial in navigating these complexities also building lender confidence in the Estepa project. The company conducted rigorous market due diligence to validate the project's positioning within Chile's evolving energy landscape, providing independent assessment of market risks also opportunities. A critical component of DNV's work involved detailed analysis of the power purchase agreements with anchor clients, ensuring these contracts provided adequate revenue security while meeting the operational requirements of industrial users. Perhaps most significantly, DNV developed optimized battery dispatch strategies that maximize both grid value also revenue potential, demonstrating how the storage component enhances project economics. Santiago Blanco, Vice President also Regional Director for Southern Europe, Middle East also Latin America at DNV's Energy Systems division, emphasized the transformative nature of the project: "This achievement demonstrates how hybrid renewable projects are rewriting the rules of grid reliability while delivering clean energy at scale. By combining solar generation with intelligent battery storage, Estepa creates a blueprint for how industrial energy users can transition away from fossil fuels without compromising on power quality or availability."

Storage Integration Addresses Grid Stability Concerns

The substantial battery component of the Estepa project, 418 MW of storage capacity, represents one of the largest battery deployments in Latin America also addresses critical challenges in grid integration of variable renewable energy. Chile's electrical system has experienced growing pains as solar capacity has expanded rapidly, creating challenges in balancing supply also demand, particularly during evening hours when solar generation decreases but electricity demand remains high. The Estepa project's battery system will provide multiple grid services, including energy time-shifting, frequency regulation, also voltage support, enhancing overall system stability. DNV's technical advisory work included sophisticated modeling of battery performance under various grid scenarios, helping lenders understand how the storage assets would operate throughout the project's lifetime. This analysis incorporated degradation modeling, cycle optimization, also revenue forecasting to provide a comprehensive view of the battery system's technical also financial performance. Grid experts note that projects like Estepa are becoming increasingly valuable as power systems worldwide transition to higher penetrations of variable renewable energy, requiring flexible resources that can respond rapidly to changing grid conditions. The project demonstrates how battery storage can transform intermittent solar generation into a dispatchable resource that provides services traditionally supplied by conventional power plants, accelerating the transition away from fossil fuel generation.

Innovative Project Structure Attracts International Investment

The successful financing of the Estepa project highlights how innovative project structures can attract international capital to renewable energy investments in emerging markets. The $510 million financing package represents a vote of confidence from global financial institutions in both the technical viability of hybrid renewable systems also Chile's supportive regulatory environment for clean energy development. DNV's involvement was particularly valued by project stakeholders for bridging technical also financial considerations. Esteban Uauy, Capital Solutions Managing Director at Atlas Renewable Energy, acknowledged this contribution: "DNV's proven track record also technical expertise were instrumental in our engagement with lenders also stakeholders. As our company continues to grow, we consistently rely on carefully selected, credible partners such as DNV, to support our transition to a more sustainable energy matrix." The financing structure incorporates mechanisms to address specific risks associated with hybrid projects, including battery performance guarantees, long-term maintenance provisions, also careful allocation of grid integration responsibilities. Financial analysts note that the successful closing of this transaction establishes important precedents for future hybrid project financings, potentially lowering the cost of capital for similar developments throughout Latin America. The international composition of the lending consortium also demonstrates growing global interest in supporting Latin America's energy transition through direct investment in transformative infrastructure projects.

Chile Leads Latin America's Energy Transition

The Estepa project reinforces Chile's position as a leader in Latin America's renewable energy transition. The country has set ambitious climate goals, including achieving carbon neutrality by 2050 also targeting 70% renewable electricity by 2030. These policies have created a favorable environment for innovative clean energy projects. Chile's geography provides exceptional natural resources for renewable energy development, with some of the world's highest solar irradiation levels in the northern regions also significant wind potential along its extensive coastline. The country has also implemented progressive energy market reforms that facilitate renewable integration, including capacity markets that value dispatchable resources also open access transmission policies. Energy policy experts highlight that Chile's approach combines ambitious targets with practical market mechanisms that enable private sector participation in the energy transition. The Estepa project aligns perfectly with these national objectives by demonstrating how renewable energy can directly support industrial competitiveness while advancing decarbonization goals. As neighboring countries observe Chile's success, similar hybrid renewable projects are being developed throughout the region, often drawing on lessons learned from pioneering projects like Estepa. The project's scale also innovative configuration position it as a reference point for energy planners throughout Latin America seeking to balance rapid renewable deployment with grid reliability concerns.

Blueprint for Global Industrial Decarbonization

Beyond its immediate impact on Chile's energy system, the Estepa project provides a valuable blueprint for industrial decarbonization efforts worldwide. Heavy industry remains one of the most challenging sectors to decarbonize due to its requirements for reliable, high-capacity power supply also process heat. The direct supply of renewable electricity to major industrial operations like Codelco's mining facilities demonstrates a viable pathway for reducing emissions from these energy-intensive activities. DNV's analysis for the project included detailed assessment of industrial power requirements also how hybrid renewable systems can be configured to meet these specialized needs. This expertise helps bridge the gap between renewable energy developers also industrial energy users, who often have different technical languages also priorities. Sustainability experts note that projects like Estepa represent a crucial step in industrial decarbonization by establishing that renewable energy can directly power core industrial processes, not just peripheral operations. As industries worldwide face increasing pressure to reduce emissions from both regulatory requirements also corporate sustainability commitments, the Estepa model offers a proven approach that maintains operational reliability while significantly reducing carbon footprints. The project's success could accelerate similar industrial offtake agreements for hybrid renewable systems globally, particularly in regions with strong solar resources also energy-intensive industrial bases.

Future Market Growth for Hybrid Renewables

The successful financing of the Estepa project signals accelerating market growth for hybrid renewable systems combining generation with storage. As battery costs continue to decline also developers gain experience with integrated system design, these hybrid configurations are becoming increasingly competitive with conventional power sources. DNV's involvement in pioneering projects like Estepa positions the company at the forefront of this emerging market segment. Santiago Blanco emphasized this forward-looking perspective: "As energy storage becomes increasingly critical for grid stability, DNV continues to support developers, financiers also offtakers navigate the technical also commercial complexities of hybrid renewable projects." Market analysts project substantial growth in hybrid renewable deployments over the coming decade, driven by improving economics also the increasing need for grid flexibility as renewable penetration grows. The lessons learned from the Estepa project, including optimal sizing ratios between generation also storage, sophisticated dispatch strategies, also appropriate contractual structures, will inform future hybrid developments worldwide. Energy transition researchers note that hybrid systems represent a crucial bridge technology in the path to fully renewable grids, providing many of the services currently supplied by fossil fuel plants while dramatically reducing emissions. The Estepa project demonstrates that with proper technical analysis also innovative financial structures, these systems can attract the substantial capital needed to deploy them at meaningful scale.

Key Takeaways:

• Atlas Renewable Energy has secured a record $510 million financing package for the Estepa hybrid project in Chile, which combines 215 MW of solar capacity with 418 MW of battery storage to provide reliable, dispatchable renewable energy to industrial customers including mining giant Codelco also energy company Colbún

• DNV's comprehensive technical advisory services were instrumental in securing the financing by conducting market due diligence, analyzing power purchase agreements, also developing optimized battery dispatch strategies that demonstrated the project's technical viability also revenue potential to international lenders

• The landmark project addresses critical challenges in Chile's energy transition by providing stable renewable power to energy-intensive industries while enhancing grid stability, supporting the country's target of 70% renewable electricity by 2030 also establishing a blueprint for industrial decarbonization efforts worldwide