AES Andes Completes US$1.3 Billion Solar-Storage Hub in Chile

AES Andes, the Chilean subsidiary of US power company AES, has recently completed a massive solar-and-battery complex in northern Chile's Antofagasta region. The project, named Andes Solar Hub, combines 692 MW of solar panels with 510 MW of battery storage, making it the largest facility of its kind in Latin America. The hub reached full operation on April 14, 2026, and was built in stages over nearly ten years.

The Andes Solar Hub is strategically located in the Atacama Desert, one of the sunniest places on Earth, which ensures optimal solar energy generation. This concentrated region is home to many solar plants due to the abundant sunlight. However, solar panels only generate power during daylight hours, which poses a challenge for evening energy demand when homes and factories still require electricity.

To address this issue, AES Andes incorporated a 171 MW battery system capable of providing power for approximately three hours after sunset. This battery storage system effectively captures surplus midday solar energy and releases it during the night, enabling the grid to rely on solar power for a more extended period. As a result, the hub significantly reduces the need for fossil fuel-based generation, such as gas or coal, during peak demand periods.

The Andes Solar Hub was not built overnight - AES Andes constructed it gradually over nearly a decade, adding capacity piece by piece. Earlier phases, such as Andes Solar IV, were completed in October 2024 near Calama, around 230 km east of Antofagasta. That phase introduced a 130 MW battery capable of running for five hours.

Northern Chile's geography is ideal for solar power generation, with the Atacama Desert offering some of the strongest and most consistent sunlight globally. The main challenge has been developing storage solutions to make solar energy more reliable and accessible. By combining solar panels with a substantial battery storage system, AES Andes has created a flexible and sustainable energy source that can help meet the region's growing electricity demands while reducing greenhouse gas emissions.

Furthermore, AES Andes is not only constructing new clean energy infrastructure but also decommissioning older coal plants as part of its Greentegra strategy. The company has already retired its Norgener coal plant in April 2024, ahead of the initial 2025 target, and plans to close more coal units. Chile aims to phase out all coal-fired power plants by 2040 and achieve carbon neutrality by 2050.

This solar-and-battery complex represents a significant step forward in Chile's efforts to transition away from coal and reduce its carbon footprint. By providing a reliable and sustainable energy source, the Andes Solar Hub will help meet the region's growing electricity needs while supporting industrial buyers' transition to cleaner energy sources. As Chile continues to invest in renewable energy projects like this, it moves closer to its ambitious 2050 carbon neutrality goal.