Chile's Colbun, Codelco agree to replace coal with renewables in PPA
Ovejeria solar park in Chile. Image by Colbun (www.colbun.cl)
Chilean utility Colbun SA has renegotiated the terms of a decade-plus old power purchase agreement (PPA) with state-owned copper miner Codelco to gradually replace the contracted supply of coal-based electricity with 100% renewables.
Under the new terms, Colbun will gradually introduce renewable power into the delivery and finalise the transition to a 100% renewables-based supply on December 31, 2025. After that date, the Chilean mining company will start receiving 1,000 GWh of clean and emissions-free power per year, Colbun said.
The contract will be in force until 2044.
Colbun has only one coal-fired power plant in operation, and that is the 350-MW Santa Maria station located in the Chilean region of Biobio. The plant went into operation in 2012.
Colbun's generation profile is mostly based on hydro power, with few thermal power plants and non-conventional renewables in commercial operation. The company is now working to add more wind, solar and battery storage to its portfolio, with plans to build more than 4,000 MW of renewables by 2030, it added.
Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.