MYTILINEOS Signed a 10-Year Renewable Energy PPA With Enel Generación Chile for the Sale of 1.1 TWh/Yea

PVTIME – MYTILINEOS S.A. (RIC: MYTr.AT, Bloomberg: MYTIL.GA, ADR: MYTHY US) through its Renewables & Storage Development (RSD) Business Unit has signed a solar power purchase agreement (PPA) with Enel Generación Chile S.A. This PPA will supply the Chilean utility with up to 1.1 TWh per year for the next 10 years. With this agreement, MYTILINEOS will deliver green energy generated, from a portfolio of four solar projects totaling 588 MWp.

The portfolio’s contracted energy of 1.1 TWh per year is equivalent to the electricity necessary to provide power to 532,000 homes in Chile, eliminating 123,000 cars from the road, and avoiding the emission of 570,000 tons of carbon pollution to the atmosphere.

“MYTILINEOS has set very ambitious growth targets globally and Latin America is a key part of the strategy to reach our goals. I am very excited to announce today the signing of MYTILINEOS’ first power purchase agreement in Chile for our first 588 MWp portfolio, which marks a solid point to position our presence in the country and from which to continue executing a disciplined growth strategy in Chile and our other choice jurisdictions in Latin America” said Nikos Papapetrou, General Manager of MYTILINEOS’ Renewables & Storage Development Business Unit.

“With this agreement Enel boosts its renewable energy portfolio to offer our clients competitive energy supply, in line with the company’s efforts to support Chile’s energy transition” mentioned Alfredo Hott, Trading and Commercialization Manager for Enel Generación Chile.

The portfolio of four projects was acquired in “brownfield” stage by MYTILINEOS during 2020-21 and marked the Company’s first incursion in Chile as an investor. Prior to that, the Company had been involved in the country as a top-tier EPC contractor. Since acquiring full control of these assets, MYTILINEOS has been focused on completing their development, contracting them through a PPA, and at the same time enhancing its local development team. To enhance its positioning in the Chilean energy market, the Company is adding geographic and technological diversification through greenfield development and acquisitions of new solar and wind projects in the central and central-south regions of Chile.

Out of the four projects in the portfolio, one is already under construction and the other three are in their final stages of development and are expected to start construction during 2022. The projects are located in the Arica-Parinacota (109 MWp), Antofagasta (228 MWp), Atacama (165 MWp), and Coquimbo (86 MWp) regions of Chile. Once the portfolio is built, MYTILINEOS’ RSD Business Unit will also oversee its operation and maintenance.

The signing of this 588 MWp portfolio PPA with Enel Generación Chile further establishes MYTILINEOS as one of Chile’s leading renewable power producers and provides a solid launching base for the Company’s ambitious growth strategy in Chile and other key markets in Latin America. In addition to this first portfolio, the Company is already developing an additional 1 GWp of capacity in Chile, Mexico, and Colombia.

The total capacity of the MYTILINEOS’ RSD Business Unit’s international portfolio currently stands at c. 2.326 MW out of which:

  • 123 MW in operation
  • 665 MW are under construction
  • 1.538 MW are Ready To Build (RTB) or expected RTB within the next 6 months

On top of the above, the portfolio also includes a pipeline of projects in various stages of development, with a capacity of c. 3.7 GW.

Larraín y Asociados and Tarelec acted as legal and commercial advisors to MYTILINEOS in this transaction.