Enel Green Power, acting through its subsidiary Enel Green Power Chile Ltda (“Enel Green Power Chile”), and Empresa Nacional de Electricidad SA (“Endesa Chile”) have signed a long-term power supply contract, which also envisages the sale of the green certificates, with a term of around 20 years for two wind power projects and about 25 years for three photovoltaic projects.
The contract, worth an estimated total of approximately 2.3 billion US dollars, will allow Enel Green Power Chile to develop wind and photovoltaic plants for a total installed capacity of about 307 MW and a total investment of approximately 611 million US dollars.
Thanks to the projects of Enel Green Power Chile, Endesa Chile was the only participant in the recent tender of the distribution companies of the Sistema Interconectado Central (SIC), and was awarded 15% of the total offering at a price below the cap.
In Chile, Enel Green Power owns and operates 284 MW of wind, hydroelectric and solar capacity. An additional 284 MW, currently under construction, will be added in the coming months. Including the 307 MW called for under the power purchase agreement (PPA) with Endesa Chile, the Company’s installed capacity will total 875 MW.
For Enel Green Power the contract represents a transaction with a related party, to be carried out through a subsidiary, in accordance with the Procedure governing transactions with related parties adopted by Enel Green Power in implementation of the applicable Consob regulations. Endesa Chile is a related party of Enel Green Power since both companies are subject to the common control of Enel S.p.A.. In view of the terms and conditions agreed, for Enel Green Power the contract is exempt from the above procedure since it is an ordinary transaction of greater importance with terms and conditions equivalent to market or standard conditions.
Enel Green Power is the Enel Group company fully dedicated to the development and management of renewable energy sources at the international level, with operations in Europe and the Americas. The company generated over 29 billion kWh in 2013 from water, sun, wind and the Earth’s heat – enough to meet the energy needs of more than 10 million households and avoid the emission of approximately 16 million tonnes of CO2 into the atmosphere. Enel Green Power is a world leader in the sector thanks to its well-balanced generation mix, providing generation volumes well over the sector average. As of June 30th, 2014, the company has an installed capacity of approximately 9,150 MW from a mix of sources including wind, solar, hydroelectric, geothermal, and biomass. The company has about 750 plants operating in 16 countries in Europe and the Americas.