Enel Green Power’s Chilean subsidiary, Enel Green Power Chile has signed a 25 years of power purchase agreement with the Empresa Nacional de Electricidad worth $3.5bn.
Under the 25-year deal, Enel will supply power generated from its geothermal project, a photovoltaic project and a wind farm in Chile.
The deal also includes 20 years of energy supply and sale of green certificates from a wind power project in Chile.
The funding from the contract is expected to help the company to develop three plants that will have installed capacity of approximately 300 MW.
With the combined power generation output of 300 MW, the project is expected to require $800m for development.
Enel Green Power already operates a portfolio of plants in Chile that has a combined installed capacity of around 600 MW consisting of 340 MW from wind power, 92 MW from hydro project and 154 MW from solar project.
The company has already signed PPA with Endesa Chile for 300 MW projects and around 300 MW from other projects that will escalate the company’s total installed capacity in Chile to about 1,200 MW.
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By GlobalDataEnel said in a statement: "For Enel Green Power this contract represents a related-party transaction, carried out through one of the Company’s subsidiaries, in accordance with the Procedure governing transactions with related parties adopted by Enel Green Power as established by applicable CONSOB (Italian Stock Exchange authority) regulations."
