Colbun inks renewable power supply contract with Chilean copper miner

Chilean utility Colbun SA announced on Tuesday that it has signed a contract with Chile-based copper miner Collahuasi to supply the company with electricity from 100% renewable sources as the miner prepares to expand its operations in the country.

The 12-year contract was awarded to Colbun in a tender process organised by Collahuasi, which sought to purchase competitively-priced green energy to ensure the continuity of its already 100% renewables-based supply for operations in Chile. The procurement comes as Collahuasi starts the development of the expansion project at its mine in the Tarapaca region, an initiative that will include construction of a desalination plant, according to Tuesday’s announcement.

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Colbun said that its power supply contract will run from January 2024 to December 2035. During the 2024-2025 period, the utility is to deliver 230 GWh of electricity per year. The volume will then increase to 650 GWh/year in 2026-2035, drawing from Colbun’s renewable projects currently under construction and new ones that will follow, the company said.

At present, Colbun’s renewables portfolio consists of 17 hydroelectric plants totalling 1,600 MW and 250 MW of solar photovoltaic capacity installed across three parks in Chile. The company’s 816-MW Horizonte wind farm is currently under construction, with operations expected to gradually start in 2024. The company is also carrying out final testing of its 8-MW/32-MWh Diego de Almagro Sur battery energy storage system in the Atacama region.