In a significant move for Latin America’s renewable energy sector, Verano Energy has secured a 15-year power purchase agreement (PPA) for its 83-MW Domeyko solar project in Chile. The project will also feature a 660-MWh battery energy storage system (BESS) to ensure consistent energy availability.
Expanding Renewable Energy Capabilities
The Domeyko solar project is set to be built in the Atacama Region, an area known for its high solar energy potential. Verano Energy is investing USD 230 million in the project, which is expected to be operational by the end of 2026.
The generated power will be purchased by Abastible SA, a liquefied gas distributor and a subsidiary of Empresas Copec. This agreement reinforces Verano Energy’s role as an independent power producer (IPP), expanding its operations beyond project development to financing, operating, and managing large-scale renewable energy initiatives across Latin America.
Verano Energy has been steadily increasing its presence in the region, with more than 350 MW of capacity across 60 projects. Many of these operate under Chile’s Pequeños Medios de Generación Distribuidos (PMGD) program, which supports small-scale renewable energy developments.
The integration of BESS with solar projects has become a necessity for Chile’s solar power market as the country faces rising energy curtailment issues. In 2024, solar and wind energy curtailment reached a record 6 TWh—more than double the 2023 level. Amid declining electricity prices and zero-marginal-cost challenges, solar-plus-storage solutions have become essential.
Driving Energy Transition in Latin America
While Chile has been a key market for Verano Energy, the company has also expanded into Argentina, Peru, and Colombia. Construction began on a 200-MW solar plant in Argentina in 2024. The company also aims to develop a nearly 6-GW solar farm in Peru for green ammonia production by 2027 and recently secured solar PV capacity in Colombia through a government renewables tender.
Verano Energy’s commitment to innovation and sustainability is strengthening its position in the market. The company’s CEO, Dylan Rudney, emphasized the importance of integrating BESS with solar power—a technology that allows energy captured during the day to be deployed at night, improving grid stability and efficiency.
Future Outlook for Solar Projects in Chile
The Domeyko solar project aligns with Chile’s broader renewable energy goals, as the country works to reduce its dependence on fossil fuels. Solar power has emerged as a leading solution, largely due to Chile’s high solar radiation levels.
As the adoption of solar-plus-storage projects continues to grow, companies like Verano Energy are at the forefront of this transition. Their investment in large-scale solar projects and BESS solutions is driving the shift toward a more reliable and efficient energy grid.
With the Domeyko project set to begin operations by 2026, Verano Energy is positioning itself as a leader in Latin America’s renewable energy landscape. The 15-year PPA with Abastible SA marks another milestone in the company’s journey toward energy sustainability.
