Pacific Hydro and Codelco have renewed their energy supply contract, which consists of 100% renewable energy production. Over 10 years, Pacific Hydro will provide the Chilean copper company with 375 gigawatts per year, representing a significant milestone in the drive towards a more sustainable future and setting a new standard in the industry.
A renewable and sustainable energy contract
The contract between Pacific Hydro and Codelco is a PPA (Power Purchase Agreement), also known as a Power Purchase Agreement in Spanish. This type of purchase and sale contract allows you to purchase energy directly from an independent producer for a certain period of time and at an agreed price that is profitable for both parties.
Energy for the El Teniente division
In this case, the energy supply contract includes the El Teniente division, responsible for the operation of the underground mine of the same name. This division may require a power supply between 60Hz and 50Hz, and Pacific Hydro has taken these needs into account in its proposal.
Innovative technology
One of the notable features of this contract is the integration of innovative technology. For example, the Coya and Pangal run-of-river hydro plants will be used as key backup technology. These plants are capable of generating electricity at a frequency of 60Hz, which is not common in Chile because the national electrical system operates at a frequency of 50Hz. However, this feature guarantees the stability necessary to support the supply of renewable energy to Codelco.
Commitment to the energy transition
This renewable energy supply contract represents 100% renewable energy production and its main objective is to support Chile’s energy transition towards cleaner and more sustainable energy sources. According to Luis Arqueros, executive manager of Commercial, Development, New Business & Corporate Affairs of Pacific Hydro Chile: “This strategic collaboration reinforces the commitment of both organizations to the energy transition of our country and its accelerated pace towards cleaner and more sustainable energy sources.” .
