Canadian Solar Inc. has announced that its energy storage business, e-STORAGE, which operates under its majority-owned subsidiary CSI Solar Co., Ltd., has signed a contract with Colbún, one of Chile’s prominent power generation companies. Under this agreement, e-STORAGE will supply a 228 MW/912 MWh Battery Energy Storage System (BESS) for the Diego de Almagro Sur project, located in the Atacama Region of Chile.
This energy storage system will be powered by SolBank 3.0, e-STORAGE’s proprietary solution designed specifically for large-scale applications. The system features lithium-iron-phosphate battery technology, an active balancing battery management system, and an advanced liquid cooling system to enhance performance, reliability, and safety. In addition to supplying the storage technology, e-STORAGE will deliver a comprehensive solution for the project, which includes local project management, commissioning support, and long-term maintenance services.
José Ignacio Escobar, CEO of Colbún, explained, “This agreement with e-STORAGE positions us as one of the leading companies in Chile’s energy storage market, ensuring a continuous and secure supply of renewable energy for our industrial clients. This project, together with the other battery systems we are developing in the north of the country, will complement the storage capacity we already have through our reservoirs in the south. It is aligned with our vision of driving a responsible energy transition, where renewable energy must be not only sustainable, but also secure, continuous, and competitive.”
Colin Parkin, President of e-STORAGE, stated, “We are proud to support Colbún’s bold vision of advancing Chile’s energy transition through large-scale storage. The Diego de Almagro Sur BESS Project represents a significant milestone for e-STORAGE’s expansion in Latin America and reinforces our role as a key enabler of Chile’s clean energy transformation. This project showcases the critical role of BESS in enabling greater grid reliability, optimizing renewable energy usage, and supporting industrial demand with a secure and continuous supply. With our SolBank 3.0 technology, we are not only delivering cutting-edge performance and safety, but also reinforcing our long-term commitment to Latin America’s clean energy future.”
Construction of the Diego de Almagro Sur BESS Project is planned to begin in June 2025 and is expected to create up to 150 jobs at the peak of activity. The project is scheduled to begin commercial operations in December 2026. Once operational, the storage system will have the capacity to meet the electricity consumption needs of approximately 55,480 households. The battery system will be co-located with Colbún’s existing 232 MW solar park at Diego de Almagro Sur, which has been operational since 2022 and currently includes a smaller 8 MW/32 MWh battery storage facility.
In addition to storing energy, the new system will provide critical grid services such as grid forming, black start capabilities, and inertia support, all of which are essential for the efficient integration of renewable energy into Chile’s national power grid. The project is expected to have a positive socio-economic impact in the Atacama Region by creating jobs and using local supply chains. The SolBank 3.0 technology also contributes to reducing the project’s environmental footprint through its high efficiency and robust safety design, aligning with Colbún’s broader sustainability objectives while ensuring long-term operational reliability.
