Atlas Renewable Energy and Codelco sign pioneering agreement for the implementation of a new solar park with battery system in Chile
1. Deal Description
Guerrero Olivos advised Atlas Renewable Energy during the tender process for the award of the Power Purchase Agreement (PPA) to supply the electricity needs of Codelco, Chile's leading state-owned mining company and the world's top copper producer, for 15 years starting in 2026. A total of 375 GWh per year will be supplied.
The transaction involved a complex tender process, which included stages of Q&A, preparation of administrative and technical offers, followed by a PPA review process.
The PPA integrates innovative technology, such as the use of storage batteries, a pioneering practice in the context of energy supply contracts in Chile that allows addressing the current needs of the industry, through Atlas's experience in solar energy and the implementation of cutting-edge technology for the renewable industry.
Through this contract with Atlas, Codelco will have a diversification of the portfolio of suppliers providing energy. Additionally, the incorporation of batteries (BESS) represents a pioneering strategic investment in the Chilean industry, contributing to achieving greater stability and reliability of the electrical supply in the region and the country.
The above also responds to the systemic needs of the country, where there is an urgency to implement technologies that allow maximizing the use of renewable resources to advance rapidly in the required energy transition.
2. Counsel list
Counsel to Atlas Renewable Energy: Guerrero Olivos
Lead partner: Felipe Frühling
Associates: Joaquín Rojas, Begoña Albornoz and Eduardo Larraín
Counsel to Codelco: Carey y Cía.
3. Date of closing
28/02/2024
4. Deal Value
Confidential
5. Jurisdictions involved
Chile