Grid-scale

Colbún shelves $500M Encanto solar-plus-storage 1,040 MWh project in Chile, cites viability concerns

Chilean utility Colbun has scrapped El Encanto solar-plus-storage project, citing viability concerns amid local opposition.

By

Tristan Rayner

May 28, 2025

Grid-scale

Chilean utility Colbún SA has officially withdrawn its USD 500 million El Encanto solar-plus-storage project, a grid-scale development planned for the O’Higgins Region in central Chile. The project was designed to feature a 249.7 MWp solar farm co-located with a 260 MW / 1,040 MWh battery energy storage system (BESS) capable of four hours of discharge.

Colbún confirmed the cancellation in a statement, citing an “evaluation of various factors that affect the viability of the project in the state in which it is currently found,” which included “technical, socio-environmental, and economic elements”.

The project also faced considerable local opposition and over 300 technical observations from the Environmental Assessment Service (SEA) in its initial review stage.

The withdrawal is seen as a “setback for the company’s energy storage strategy,” it said, given Chile’s surplus of solar energy during the day. However, Colbún did state its continued interest in exploring opportunities in the O’Higgins Region and elsewhere, emphasizing that “renewable generation and storage systems will be key for a more sustainable and resilient supply”. Colbún is advancing other significant BESS projects in the busy Chilean region. Its portfolio under construction includes the 228 MW/912 MWh battery project.

Written by

Tristan Rayner

Tristan is an Electrical Engineer with experience in consulting and public sector works in plant procurement. He has previously been Managing Editor and Founding Editor of tech and other publications in Australia.

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