June 23, 2024

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Engie is processing 860 megawatts of projects amid a renewed offensive in Chile

Engie is processing 860 megawatts of projects amid a renewed offensive in Chile

The company said in a presentation that Engie Energía Chile has 860 megawatts of renewable projects in an advanced stage of development.

The associated investment in the terminals, scheduled for 2025-2027, is US$1.1 billion.

The energy company plans to build wind and solar farms, as well as associated battery storage systems.

The expenditure is part of a broader energy transition plan to add 2.1 GW of renewable energy capacity between 2019 and 2027. About 0.8 GW of new construction projects and acquisitions, involving nearly US$800 million, are already in the works. Approximately 500 MW is under construction, based on Q4 2022 results.

For this year, Engie plans to invest 387 million US dollars in renewable energy projects, including wind power Lomas de Taltal 343 MW), for 433 million US dollars; and the battery storage system at Koya Solar Farm (139 MW), valued at US$191 million.

Lomas de Taltal should be ready by the end of next year and Coya in 1Q24.

New renewables and battery storage capacity, as well as improved hydrology, along with lower fuel prices and revised power purchase agreements that capture fuel price increases for 2022, should help put pressure on supply costs and support a recovery in EBITDA this year, That fell 40% in 2022 to $189 million, the company said on an earnings call.

Like Enel, Engi is also looking for gas in Argentina, which is usually cheaper than buying on the international market. Imports averaged 4.7 million cubic meters/day in the fourth quarter of 2022 and projected volumes increased to 5.3 million cubic meters/day-5.8 million cubic meters/day for the first quarter of 2023, according to the filing.

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moving in

The company’s transportation unit plans to deploy $109 million this year in the midst of an investment program 2020-2026 that includes $67 million in national projects and $83 million in regional projects. Approximately $110 million has been awarded in new construction and expansion initiatives, and the first is expected to be ready by the first quarter of 2014.

Green loan from the International Finance Corporation

To finance renewable energy and restructuring projects, Engie is structuring a US$400 million green loan with the International Finance Corporation (IFC).

The conference was told, “We’re working with the IFC, and we’re doing our due diligence.”

The company told BNamericas last year that it was in loan negotiations with Engie.

To cover all planned investments, the company has a financing plan that can be revised if investment plans change.

Secured lands and environmental licenses

Engie has been awarded government land concessions in Taltal, Antofagasta Region, for wind, solar and battery energy storage system projects with a capacity of up to 1.45 GW.

A companion project, US$645 million, Pampa Fidelia, is in EAS. The project consists of a 337 MW wind farm and a battery storage system. Another initiative known as Bamba Yolanda is also planned.

Also being evaluated is the $140 million Libélula solar photovoltaic storage facility in the Santiago Metropolitan Region, as well as the 180 MW Pemuco wind farm in the Ñuble Region.

In the generation sector, ENGIE has environmental approval for the Pampa Camarones II projects (up to 300 MW solar PV and 180 MW battery storage, in the region of Arica and Parinacota) and Vientos del Loa (wind power 205 MW, Antofagasta region).

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Installed capacity and conversion

In terms of installed capacity, the company aims to reach 3.4 GW by 2026, with 69% coming from renewables and biomass, 29% gas and 2% diesel.

By comparison, in 2018 the generation mix was 58% coal, 33% gas, 8% diesel and 1% renewables.

The installed capacity is 2.36 GW (45% coal, 27% gas, 26% renewables and 2% diesel).

Authorities are also working on a $77 million plan to convert 700 megawatts of new coal capacity into gas and biomass. Engie, like other energy companies in Chile, has a plan underway to phase out coal-fired electricity generation.

The company holds 7% market share in Chile in terms of installed capacity, after Enel Generación, AES Andes and Colbún.