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Featured in Curtailment creeps – 07-08-2026

Chile’s hybrid heroics

In 2024, Chile passed a law incentivizing battery development paired with utility-scale solar. This move quickly led to a flood of big battery project announcements, as the capacity payments model combined with arbitrage revenue means hybrid solar and storage is very profitable. By the end of 2026, Chile is expected to surpass 6 GW of battery energy storage systems (BESS) capacity.
Blathnaid O’Dea
By
Blathnaid O’Dea
Chile is building a transmission line to connect capital city Santiago and other demand centers with the north of the country. | Image: Echovisuals

The Iberian Peninsula is emerging as a key test case for hybrid PV and battery storage, driven less by inherent project attractiveness and more by mounting pressure on standalone solar. As merchant exposure, price cannibalization and curtailment risks intensify, co-located battery energy storage systems (BESS) are becoming a tool to stabilize revenues rather than unlock …

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