Scaling it out proportionally would only have economies of bulk purchase and site engineering.
So, more storage is better.
Storing for say 1 month means you get 12 payouts per year, storing it for 12 hours means you get 365 payouts per year. If your on average getting say 1c/kWh from the distance in values prices every day then your monthly sale needs to be at 30c/kWh to be worth it. Prices simply don’t rise that high every month making long term storage less valuable than daily storage.
On top of this these things aren’t 100% efficient. Buying at 7c/kWh and selling at 8c/kWh is losing money if these are say 80% efficient. Which means you’re never going to profitably buy and sell throughout the day. Thus the 500MWh capacity will mean some long term storage.
So we do need long-term storage and we will have to finance it so that when we need it, we can count on it
Next solar and wind don’t correlate and solar output never hits zero on cloudy days. So, excess capacity always directly reduces the need for storage. Working out the ideal amount of excess capacity isn’t trivial, but unless storage costs tank dramatically something like 85+% on worst case days is likely viable. Which could then easily be covered by hydro.
A large issues is islands, but plenty of people setup off grid houses completely dependent on Solar. It’s simply generally more expensive.
I am very glad you are not responsible for planning for the availability of power I depend on.
Now, if your saying Chile can’t trust it’s maintaining good relationships with any of those 3 counties then sure.
All the tradeoffs, together, are an optimization problem that is not hard to solve for conditions found. Since the ultimate source of power, solar, is the cheapest ever devised, they start with a huge advantage. It would be foolish to bet against them.
This apparatus is for use mainly when the sun is not shining, or when it is not shining enough. Sometimes the sun barely penetrates the clouds, and then you need a boost all day. Maybe it would be cheaper to import power from a dam in Paraguay than to keep your tanks full and cold until you need it. But it might be cheaper to buy power only if they know you don't really need to.
Energy economics are more complicated than we can safely generalize about here. The safe bet is that somebody spending $150M has thought it through.
The other grid storage I wonder about was that Army salt water battery that Jeff Dahn said fairly effusive things about a few years ago. I have heard nothing of it since, so I assume it had cycle problems or other fundamental issues.