Verano Energy has made a significant move in Latin America's renewable energy sector. The company has secured a 15-year power purchase agreement (PPA) for its 83-MW Domeyko solar project in Chile. The project will feature a 660-MWh battery energy storage system (BESS) to enhance energy availability.
Expanding Renewable Energy Capabilities
The Domeyko solar project will be located in the Atacama Region. This area is known for its high solar energy potential. Verano Energy has committed an investment of USD 230 million to bring this project to completion. The project is expected to be operational by the end of 2026.
Abastible SA, a liquefied gas distributor and a subsidiary of Empresas Copec will purchase the power generated. This agreement reinforces Verano Energy’s role as an independent power producer (IPP). The company has expanded its operations beyond solar project development. It now finances, operates and manages large-scale renewable energy initiatives across Latin America.Verano Energy has been increasing its presence in Latin America. The company has
more than 350MW of capacity across 60 projects. Many of these projects operate under Chile’s Pequeños Medios de Generación Distribuidos (PMGD) program. This program supports small-scale renewable energy developments.The integration of BESS with solar projects has become
in Chile. The country has faced rising energy curtailment issues. In 2024, solar and wind energy curtailment reached a record 6TWh. This figure was more than double the 2023 level. Declining electricity prices and zero marginal cost challenges have made solar-plus-storage solutions a necessity.
Driving Energy Transition in Latin America
Chile has been a key market for Verano Energy’s solar projects. The company has also expanded into Argentina, Peru and Colombia. In Argentina, Verano Energy started building a 200MW solar plant in 2024. In Peru, it aims to develop a nearly 6GW solar farm for green ammonia production by 2027. In Colombia, it recently secured solar PV capacity through a government renewables tender.
Verano Energy’s commitment to innovation and sustainability strengthens its position in the market. The company’s CEO, Dylan Rudney, emphasized the importance of integrating BESS with solar power. This technology allows energy captured during the day to be available 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. The country has been actively working to reduce dependence on fossil fuels. Solar power has emerged as a leading solution due to Chile’s high solar radiation levels.
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 highlights 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.