Energy storage and reserve power systems - Energy storage and reserve power systems provide essential backup capacity for grid reliability. These systems enable fast frequency response, peak load management, and seamless integration of renewable energy, strengthening the region’s power resilience and operational flexibility.

Energy storage, particularly Battery Energy Storage Systems (BESS), is revolutionizing the provision of reserve power and other ancillary services in Latin America. Reserve power systems are essential to cover unexpected outages of generation or transmission equipment. Historically, this was managed by keeping thermal or hydro generators partially loaded (spinning reserve) or available for quick startup (non-spinning reserve). BESS technology offers a superior alternative due to its zero-emission operation, high ramp rates, and modular deployment.

In Latin America, BESS is being deployed to provide various reserve functions: fast contingency reserves (seconds to minutes) and capacity support (hours). Chile’s regulatory framework has been a frontrunner in financially incentivizing BESS for these roles, often co-locating them with intermittent renewables to firm their output and provide system services. Furthermore, large-scale pumped hydro storage remains a vital component in some countries, offering a substantial and long-duration storage and reserve solution. The increasing deployment of both BESS and modernized pumped hydro fundamentally enhances grid resilience, reduces reliance on expensive, polluting peaking plants, and enables the deeper integration of intermittent clean energy sources.