Enel Green Power signs power supply agreement worth $3.5bn with Endesa Chile

9 July 2015 (Last Updated July 9th, 2015 18:30)

Italian renewable energy firm Enel Green Power (EGP) has signed a long-term energy power supply agreement with Empresa Nacional de Electricidad (Endesa Chile), which is worth about $3.5bn.

Italian renewable energy firm Enel Green Power (EGP) has signed a long-term energy power supply agreement with Empresa Nacional de Electricidad (Endesa Chile), which is worth about $3.5bn.

Under the contract, Enel’s Chilean subsidiary and Endesa Chile has agreed to supply renewable power for around 25 years from a geothermal project and a solar photovoltaic project and supply power for 20 years from a wind project in the country.

The three facilities will have a combined power generation capacity of 300MW, with a likely investment of around $800m for their construction by EGP.

"The three facilities will have a combined power generation capacity of 300MW, with a likely investment of around $800m for their construction."

The deal also includes provision for the sale of green certificates for all three facilities.

The 50MW Cerro Pabellon project will be a geothermal energy plant and will be constructed north of Antofagasta.

Power will be generated from volcanic steam, with project investment estimated at around $180m. Commissioning for the facility has been scheduled for late-2016.

The 160MW Finis Terrae is the solar photovoltaic facility that the power purchase agreement has been signed for with Endesa Chile.

Claimed to be the largest PV plant in the country, the facility is expected to involve an investment of nearly $270m and scheduled to enter service by the first half of 2016.

Once operational, the facility will be able to generate over 400GWh of renewable energy in a year, which can meet the power requirements of almost 198,000 houses in the country.

The wind farm to be built by EGP in Chile will have an installed capacity of 24MW. The Los Buenos Aires wind project will be developed in the region of Bio-Bio and involve an investment of $55m.