The project, Sol de Tarapacá, will be located in the municipality of Pozo Almonte, in Chile’s northern region of Tarapacá.
The National Mining Company of Chile (ENAMI) will be the first Chilean mining company that will have all of its electricity demand covered by clean energy sources. Supply of electricity under the long-term PPA will begin in April 2018.
The U.S. government’s Overseas Private Investment Corporation (OPIC) increased clean energy financing in 2017, despite the arrival of the Trump Administration and an ongoing investigation.
The Chilean government said that existing coal power plants will be gradually closed, although by 2030, the fossil fuel is still expected to account for 25% of thermoelectric power production. Renewables, however, are forecast to cover the remaining 75%.
The portfolio consists of 12 solar plants to be developed under Chile’s PMGD Program for distributed generation.