Enel Green Power Chile and Empresa Nacional de Electricidad (Endesa Chile) have signed a long-term power supply contract, which is worth around $2.3bn and includes the sale of green certificates.
Endesa Chile, a subsidiary of Italian renewable energy corporation Enel Green Power, was the only participant in the recent tender of the distribution companies of the Sistema Interconectado Central (SIC). It was awarded 15% of the complete offering at a price below the cap.
The scope of the deal includes supplying power for two wind projects over a term of 20 years, and for three solar photovoltaic (PV) projects for around 25 years.
Under the agreement, Enel Green Power Chile will develop the wind and solar PV plants with a combined installed capacity of about 307MW. The firm is likely to invest around $611m in total for the projects.
The deal raises the installed capacity of Enel Green Power in Chile to up to 875MW.
Currently, the firm owns and operates 284MW of renewable power in the South American country including wind, hydroelectric and solar. Endesa Chile has an additional 284 MW under its portfolio, which is being developed and added in the next few months.