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Finnish renewable energy developer and investor Korkia has received authorization for the construction of the Terrazas sectioning substation in Chile, a key milestone that enables the grid connection of its large-scale solar and battery energy storage (BESS) project.

The approval allows Korkia to advance the final infrastructure required to connect the Terrazas hybrid energy development, located in the Coquimbo region, to Chile’s national transmission system (SEN).

The project combines 280 MW of solar photovoltaic capacity with a 1.24 GWh battery energy storage system, designed to improve grid flexibility and shift renewable generation to periods of higher demand.

The authorized sectioning substation is a key element of the project’s infrastructure, enabling controlled connection to the 220 kV transmission network.

Sectioning substations play an important role in modern power systems by:

• Dividing and managing high-voltage transmission lines
• Improving grid reliability and fault isolation
• Enabling controlled power flows from renewable plants
• Supporting future expansion of transmission capacity

The substation will serve as the interconnection point between the renewable plant and the national grid, ensuring that both solar generation and stored battery energy can be efficiently exported.

Chile is one of the fastest-growing renewable energy markets globally, with solar and storage capacity expanding rapidly but facing increasing transmission and grid congestion challenges.

The Terrazas project is designed to address these challenges by combining:

• Large-scale solar generation
• Grid-scale battery storage
• Dedicated transmission infrastructure

This hybrid configuration allows the project to reduce solar curtailment, improve dispatchability, and enhance overall system stability.

Korkia, headquartered in Helsinki, is an international developer focused on advancing late-stage renewable and storage projects across multiple markets.

In Chile, the company is actively developing a portfolio of solar, wind, and battery storage projects, often paired with dedicated grid infrastructure such as substations and connection points.

The Terrazas project is part of this broader strategy, aimed at delivering grid-ready renewable energy assets that can be rapidly integrated into the national system.

The approval highlights the increasing importance of substations and transmission infrastructure in enabling renewable energy deployment.

As solar and battery capacity expands, grid infrastructure is no longer a secondary consideration but a critical bottleneck and enabler of project development.

In Chile, where renewable penetration is high, investments in sectioning substations, transmission upgrades, and interconnection capacity are essential to support continued energy transition growth.

With the authorization secured, Korkia can now move forward toward construction of one of its most significant hybrid renewable projects in Chile.

The Terrazas substation marks another step in the country’s transition toward a flexible, storage-enabled renewable energy system, where grid infrastructure plays an equally important role as generation capacity.