Spanish renewables developer Grenergy has started building a 4.1GWh energy storage project, which it claims will be the world’s largest, in Chile’s Atacama Desert.

Grenergy revealed its plan for the Oasis de Atacama behemoth project today (Tuesday), saying it has already started construction on what will be the “world’s largest” energy storage facility.

Grenergy said it will invest $1.4bn in the project, which is expected to “come on stream in phases over the next 36 months.”

It did not specify what type of storage will be used for the project, which will include a 1GW solar farm.

“Chile is a superpower in terms of the development of energy storage due to the exceptional conditions of the Atacama Desert," said David Ruiz de Andres, CEO of Grenergy.

The Atacama Desert in northern Chile is the driest place on Earth and is also said to have the highest level of solar irradiation in the world, making it ideal for such a project.

"Oasis de Atacama will be an iconic project for Grenergy and the entire renewable sector,” added Ruiz de Andres.

The Moss Landing Energy Storage Facility in California is said to be the world’s largest current battery energy storage facility at 3GWh.

Ruiz de Andres said Grenergy has also signed a 15-year PPA for Oasis de Atacama to supply more than 8TWh of green energy to a subsidiary of COPEC, one of the main fuel distribution companies in Chile.

The project also has the backing of five international banks, he said.

Grenergy said it is “one of the first companies in the world to sign a PPA combining solar energy and storage projects.”

Grenergy, which was founded in 2007, made the announcement as part of its first capital markets day.

The company also revealed its plan to make a global investment of €2.6bn ($2.8bn) “until 2026.”

The company is targeting having 5GW of installed solar capacity by 2026 along with 4.1GWh in energy storage capacity.

Currently, Grenergy says it has a 15.5GW platform in various stages of development and has successfully sold a total of 1.1GW.

Grenergy said it plans to generate more than €600m by 2026 through the sale of assets.