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BESS: Making the Case From Chile
A key to a more flexible and resilient power system.
BY ROBERTA ANDREANI
AND DIEGO PEÑA
Around the world, utilities and governments are prioritizing grid resilience, reinforcing networks and emergency systems so that when the next disaster strikes, the lights stay on (or at least come back much faster).
In Latin America, recent large-scale blackouts – including a February 2025 outage that plunged over 90% of Chile into darkness – have underscored also why “resilience” is now a watchword in the global electric sector.
Since 2015, Chile has had a Long-Term Energy Policy which, in its first version, already included supply security and quality as a foundational pillar. This vision has deepened over time: the 2021 update placed the goal of having a resilient and efficient energy system as its first goal. In parallel, the Ministry of Energy published the Strategy for Flexibility of the National Electric System in 2020, outlining 12 specific measures to move in that direction. More recently, the Initial Agenda for a Second Phase of the Energy Transition was issued in the same direction.
In all of these initiatives, one recurring solution stands out: Battery Energy Storage Systems (BESS). These systems not only enable better daily energy management, but can also provide power adequacy, support service restoration, function as transmission infrastructure, and crucially, offer ancillary services.
According to data from the National Energy Commission, from the total system costs in recent years, 38% corresponds to ancillary services and 31% to energy over costs. One of the underlying causes of these figures is the operation of power plants at their technical minimums, underscoring the urgency of integrating more flexible technologies such as storage.
Promoting the participation of BESS in ancillary services represents a strategic opportunity. Incentives should be structured so that it makes no difference whether a facility participates in the market by selling its energy or by providing ancillary services, enabling a more efficient allocation of resources.
There are nearly 1,355 MW of installed storage capacity in operation, 3,507 MW under construction, and 9,804 MW undergoing environmental evaluation. However, for this capacity to translate into tangible benefits, progress in the regulatory framework is essential.
There are currently ongoing regulatory processes aimed at defining the role and operation of storage within the Electric System, including modifications to Supreme Decrees No. 88 and No. 57 and a significant amendment to Supreme Decree No. 125, which governs system coordination and operation.
The amendment to Supreme Decree No. 125 is relevant, as it will require the National Electric Coordinator to justify dispatches outside the economic order, potentially paving the way for new ancillary services that, with appropriate remuneration, could lead to greater renewable energy integration through storage.
Aligned with this evolution, the National Energy Commission published Exempt Resolution No. 545, which modifies and replaces the Ancillary Services Definition Report. This new resolution significantly enhances the regulatory framework by updating the methodologies for the remuneration of ancillary services, particularly by introducing a clear methodology and calculation procedure for the opportunity cost of Storage Systems and Renewable Power Plants with Storage Capacity in real-time operation —an aspect that was not previously defined.
By providing a transparent and detailed approach for valuing the opportunity cost of storage, the new regulation ensures fairer and more efficient compensation for these resources, thereby promoting their optimal participation in the electricity market.
Ultimately, energy storage is poised to play multiple critical roles within our power system. Therefore, accelerating the ongoing regulatory changes is urgent, with the goal of effectively reducing system costs, strengthening supply security, and giving a decisive boost to the energy transition.
DLA Piper associate Roberta Andreani concentrates her practice in Energy and Natural Resources Law, particularly in the development of renewable energy projects and in energy transition matters.
DLA Piper partner Diego Peña leads the Energy and Natural Resources practice group of DLA Piper in Chile and is also a Co-Leader in the US-LatAm Energy, Infrastructure & PPP Practice Group Regional.
