Enel Green inks USD-3.5bn renewables PPA in Chile

Enel Green Power SpA (BIT:EGPW) said today it has struck a power purchase agreement (PPA) worth up to USD 3.5 billion (EUR 3.16bn) tied to solar, wind and geothermal projects in Chile totalling 300 MW.

The Italian renewables company expects to spend some USD 800 million on building its first geothermal power plant in the country as well as a solar photovoltaic (PV) park and a wind farm. Empresa Nacional de Electricidad SA (Endesa Chile), another unit of Italy’s Enel SpA (BIT:ENEL), has agreed to buy the electricity and green certificates generated by the geothermal and PV facilities for a 25-year period and those from the wind park for 20 years.

In separate statements, Enel Green said it is initiating construction of the 160-MW Finis Terrae solar plant in the Antofagasta region and the 24-MW Los Buenos Aires wind farm in Los Angeles municipality that will sell their output to Endesa Chile. The USD-270-million Finis Terrae solar project is seen to become operational in the first half of 2016.

At present, Enel Green runs 600 MW of renewable energy plants in Chile, including 340 MW of wind, 154 MW of solar and 92 MW of hydroelectric capacity. Together with the 300 MW from the PPA with Endesa Chile and a further 300 MW that are currently being realised, the company’s total installed capacity in the Latin American country will hit 1,200 MW.

(USD 1.0 = EUR 0.905)

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