Glenfarne Acquires Chilean Battery Storage Portfolio for $865 Million
Table of Contents
Glenfarne, a renewable energy infrastructure developer, has finalized the acquisition of a battery energy storage system (BESS) portfolio in Chile from Metlen and its subsidiary, GAC RS Chile II. The deal, initially announced in April 2025, was completed last week with a total valuation of US$865 million. This acquisition substantially expands Glenfarne’s technology diversity and geographic reach within the rapidly growing energy storage market.
Expanding Glenfarne’s Renewable Energy Capacity
The acquisition adds substantial battery capacity to Glenfarne’s infrastructure portfolio, bringing the company’s total renewable energy pipeline to 3.1 gigawatts (GW) of capacity. “[W]ith this acquisition, Glenfarne is increasing the technology diversity of our infrastructure by adding battery capacity and increasing geographic and revenue diversification,” stated Brendan Duval, Glenfarne CEO and founder.
This move underscores a broader trend of investment in energy storage solutions, particularly in regions with high renewable energy penetration. Battery storage is crucial for mitigating the intermittency of renewable sources like solar and wind, ensuring a stable and reliable power supply.
Chile: A Leader in Long-duration Energy Storage
Chile is rapidly emerging as a global leader in battery energy storage, especially for long-duration systems. Nikos Papapetrou, metlen chief executive director of renewables and energy transition platform, highlighted Chile’s position as a “frontrunner for long-duration BESS.” This is evidenced by projects like Acciona Energia’s planned addition of a 200MW/1GWh 5-hour BESS to its Malgarida solar PV complex announced in November 2024.
The country’s aspiring renewable energy goals and favorable regulatory surroundings are driving this growth. According to Chilean energy minister Diego Pardow Lorenzo,Chile is on track to exceed its 2050 BESS deployment targets as early as 2027 as reported by Energy-Storage.news. This accelerated timeline reflects the increasing demand for reliable energy storage solutions to support the country’s transition to a cleaner energy system.
Financing the Acquisition
Glenfarne secured a finance package exceeding US$1 billion to facilitate the acquisition. Underwriting for the package was provided by BNP Paribas, Scotiabank, and Société Générale. Legal advisory services were provided by Claro & Cia, Paul Hastings LLP, and White & Case LLP.
Key Takeaways
* Critically important Investment: Glenfarne’s $865 million acquisition demonstrates substantial investment in Chilean energy storage.
* Chile’s leadership: Chile is rapidly becoming a global hub for long-duration BESS deployment.
* Growing Demand: The demand for energy storage is driven by the need to integrate intermittent renewable energy sources.
* Expanded Capacity: Glenfarne’s renewable energy pipeline now totals 3.1 GW.
Looking ahead
The acquisition positions Glenfarne to capitalize on the growing demand for energy storage in Chile and beyond. As renewable energy adoption continues to accelerate globally, investments in BESS will be critical for ensuring grid stability and reliability. Chile’s proactive approach to energy storage policy and its abundant renewable resources make it an attractive market for continued investment and innovation in this vital sector.