Colbún and Codelco amend a power purchase agreement, aiming to promote the supply of renewable energy. It replaces coal-based electricity supply with zero-emission energy supply. The agreement will be phased in and will feed the existing portfolio of both companies.
Modification of the contract
Colbún and Codelco announce, however, that the contract will remain in force until 2044. However, the transition will take place by the end of 2025. Colbún will provide Codelco with 1000GWh of emission-free renewable energy per year.
The signing of this agreement reinforces Colbún’s growth strategy based on renewable energy and storage. It is reflected in a broad portfolio of solar, wind and new technology initiatives. The various projects are either under construction or undergoing environmental assessment or development.
The Chilean company aims to build more than 4000MW of renewable energy by 2030. This growth in renewable energies and storage is complemented by the renewable energy portfolio. This energy comes from the company’s hydroelectricity, which amounts to 1567MW.
Multiple projects
The portfolio of renewable initiatives developed by Colbún includes many projects. The company has three solar farms currently in operation producing 257MW. It also has two projects under construction, a wind farm and a battery project.
It also has two environmentally approved solar farm projects. In addition, last August, Colbún submits the Celda Solar photovoltaic and battery project to an environmental assessment. The project has an installed capacity of up to 421MW plus 240MW of batteries.
The Chilean company is also preparing to submit to SEIA the Junquillos wind farm project, with an installed capacity of up to 462MW. José Ignacio Escobar, CEO of Colbún, says:
“As we’ve always said, the main driver of Colbún’s energy transition and transformation is our customers, who are increasingly demanding clean, renewable energy sources.”
The agreement signed between Colbún and Codelco reflects the market conditions for this type of operation, taking into account the contracts in force.
