The Power Purchase Agreement (PPA) establishes a direct relationship between the independent producer and the consumer.
Pacific Hydro, a company specialized in clean energy solutions, and the National Copper Corporation of Chile (Codelco), have renewed an energy supply contract that conveys the supply of the electricity required with 100% renewable sources. Over the next 10 years, Pacific Hydro will supply the Chilean mining company with 375 gigawatts per year, setting an important precedent for the promotion of a more sustainable future, while raising industry standards.
The contract, focused on El Teniente division --in charge of the operation of the underground mine of the same name-- guarantees an energy supply adaptable to fluctuating needs, which can vary between 60Hz and 50Hz.
The Power Purchase Agreement (PPA) establishes a direct relationship between the independent producer and the consumer, ensuring a constant supply over a predetermined period and at an agreed price, benefiting both parties.
Additionally, the agreement incorporates innovative technology. For example, the Coya and Pangal run-of-the-river hydropower plants will play a key role as technological support. Although they generate electricity at a frequency of 60Hz (unusual in Chile, as the national electricity system operates at 50Hz), these plants will provide the stability necessary to support the renewable energy supply to Codelco.
“This supply contract, which represents 100% renewable energy production, will provide Codelco with an amount of 375 gigawatts per year over the next decade. 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,” said Luis Arqueros, executive manager of Commercial, Development, New Business & Corporate Affairs of Pacific Hydro Chile.
Codelco, a state-owned company with a long history in the mining industry, recognizes the importance of reducing its environmental footprint and is committed to adopting more sustainable practices in all its operations. The El Teniente Division, responsible for the operation of the El Teniente underground mine, located eighty kilometers southeast of Santiago, has demonstrated its leadership by actively seeking electricity supply alternatives that minimize its environmental impact.
It should be noted that generation is considered renewable given the plants' nature. The supply will be accredited by Pacific Hydro annually through I-REC certificates --international standard documents, which validate that the energy used comes from 100% renewable sources-- or in its absence, by any other institution of recognized international prestige and accepted by Codelco.
