Codelco ensures 100% renewable energy supply by 2030

Javiera Pizzoleo / Mayo 6, 2024 | 15:18
The Corporation signed a modification of the contract signed in 2007 with Engie, which will allow it to replace coal electricity supply with renewable energy.

Codelco and Engie have announced the modification of the electricity purchase contract signed in 2007 between Codelco and Engie's subsidiary, Central Termoeléctrica Andina SpA (CTA), with which the copper company ensured a 100% clean energy matrix by 2030, according to its sustainable development goals.

The agreement involves the modification of the contract for 1,000 gigawatts per year (GWh/year) currently supplying electrical energy to the Gabriela Mistral Division and a portion of Chuquicamata, with validity until 2032. Among other changes, the agreement establishes that as of January 1, 2026, Codelco may replace CTA's coal-based supply with renewable energy.

Codelco's CEO, Rubén Alvarado, highlights that "this agreement allows Codelco to advance towards its purpose of being a pillar of sustainable development in Chile and the world; ensuring an energy supply from renewable sources is aligned with our aspiration to be leaders in environmental protection."

In this regard, Engie Chile's Corporate Commercial Manager, Enzo Quezada, states that "our company is committed to ceasing coal-fired energy generation by 2025. In that sense, the contract modification with Codelco is another action in line with our transformation plan to accelerate energy transition and decarbonize the country's energy matrix."

Mauricio Acuña, Codelco's Vice President of Supply, comments that "with this agreement, we fulfill our commitment to migrate 100% of electrical energy to renewable sources ahead of schedule. In addition to this agreement, the recently awarded tender and previous renegotiations of coal-based contracts have allowed us to access better market conditions."

The path to decarbonization 

The signing of this agreement reinforces Codelco's strategy to transition to a matrix of clean energy supply, a process initiated in 2018 through the signing of a decarbonization contract for the Chuquicamata Division.

In 2022, the copper company agreed to significant renegotiations with its supplier, Colbún, and in January 2023, it materialized a new agreement, this time with the generator AES Andes, to renegotiate the contract supplying the Ministro Hales and Radomiro Tomic divisions.

In February of this year, the Corporation announced the successful conclusion of the public renewable energy tender process developed during 2023, awarded to Atlas, Colbún, and Innergex, for a total of 1.8 TWh/year, thereby ensuring a matrix with 85% renewable electrical energy by 2026.

With this agreement with Engie, the state-owned company will decarbonize 100% of its energy contracts before the committed date of 2030.

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