Chile’s oEnergy Bets $2.5 Billion on Solving Renewable Energy’s Biggest Problem: Waste
Chile is rapidly becoming a global hub for renewable energy, but a critical challenge threatens to undermine its progress: energy dumping – the wasteful curtailment of clean power. oEnergy, a Chilean firm founded by engineers Ricardo Sylvester and Yuri Andrade, isn’t just building renewable projects; it’s aggressively tackling this issue with a $2.5 billion investment portfolio focused on battery energy storage systems (BESS). This isn’t simply about adding capacity; it’s about building a resilient, efficient, and ultimately, useful renewable energy grid.
From PMGDs to Pioneering Storage Solutions
oEnergy’s journey began over a decade ago with small distributed generation plants (PMGDs). However, the company quickly recognized the limitations of simply generating power without a means to store and dispatch it effectively. “We have built about 52 projects, equivalent to 296 megawatts (MW), but today we operate about 100, from other players in the sector,” explains Yuri Andrade, highlighting the company’s growth and expanding role in the Chilean energy landscape. This realization spurred a “second phase” for oEnergy, centered on developing advanced storage solutions – a move timed perfectly with the increasing urgency to address energy waste.
The Rise of Battery Energy Storage Systems (BESS) in Chile
The core of oEnergy’s current strategy lies in deploying both stand-alone BESS projects and hybrid solar-plus-storage initiatives. Currently, the company boasts a portfolio of 54 projects, comprising 30 stand-alone BESS and 24 solar generation projects integrated with BESS. This focus on **battery energy storage** isn’t unique to oEnergy; it’s a global trend driven by the intermittent nature of renewable sources like solar and wind. However, Chile’s unique geographical advantages – high solar irradiance and strong wind resources – coupled with its growing energy demand, make it a particularly compelling market for BESS deployment. According to a recent report by BloombergNEF, battery storage deployment is expected to increase five-fold by 2030, underscoring the global momentum behind this technology.
A Unique Business Model: Development and “Asset Rotation”
oEnergy doesn’t intend to hold onto these assets indefinitely. Their business model centers on project development – securing permits, navigating community engagement, and obtaining environmental approvals (RCAs) – and then attracting investment for construction and operation. “oEnergy has invested and will continue to invest its own risk capital in the project development phase and the structuring of financing,” Andrade clarifies. This involves forging “flexible associative models” with generators, mining companies, infrastructure funds, and strategic partners. Crucially, the company anticipates “partial or total asset rotation,” a strategy for recycling capital and fueling further growth.
Navigating the Regulatory Landscape and Project Timelines
Securing the necessary RCAs is a critical step, and oEnergy is making significant progress. Thirteen RCAs are already approved for stand-alone BESS projects, with six projects having received a favorable environmental relevance resolution. The company expects to secure the remaining RCAs by the first half of 2026. For the 24 solar-plus-BESS projects, 11 have favorable RCAs, two have positive environmental relevance resolutions, and seven are currently undergoing environmental evaluation, with resolutions anticipated in early 2026. This proactive approach to regulatory approvals demonstrates oEnergy’s commitment to timely project delivery.
The Borda Group Investment: Fueling Expansion
In April 2025, the Borda Group, linked to Chilean businessman Martín Borda, injected capital into oEnergy, acquiring a 40% stake in the company. While the financial details remain undisclosed, this investment provides a significant boost to oEnergy’s expansion plans and validates its strategic direction. The Andrade family retains majority ownership, ensuring continued control over the company’s vision. This partnership signals growing confidence in Chile’s renewable energy sector and the critical role of energy storage in its future.
Beyond Chile: Implications for Global Renewable Integration
oEnergy’s success in Chile offers valuable lessons for other nations striving to integrate higher percentages of renewable energy into their grids. The company’s focus on BESS, coupled with its innovative business model, demonstrates a viable pathway for overcoming the challenges of intermittency and energy waste. As renewable energy penetration increases globally, the demand for sophisticated storage solutions will only intensify. The future of renewable energy isn’t just about generating clean power; it’s about intelligently managing and deploying it, and companies like oEnergy are leading the charge.
What are your thoughts on the role of battery storage in unlocking the full potential of renewable energy? Share your insights in the comments below!
