The renewable energy arm of Italy's Enel Group, Enel Green Power (EGP) will supply 3 TWh of renewable energy annually for a period of 10 years to a mining company in Chile. Global mineral and metal mining company AngloAmerican will power its Chilean operations with the power supplied by EGP's local subsidiary Enel Generación Chile.
Enel said this as not only the largest deal of its kind in Chile, but also the largest renewable energy supply deal ever signed by the group in terms of annual volumes. However, it did not want to divulge the energy mix or individual share of renewable energy resources sealed under the deal. In response to TaiyangNews query on the subject, Enel's media team said it is not disclosing further details.
In Chile, the company has an installed capacity of around 7.5 GW with 4.7 GW of renewables. Solar's share is around 500 MW but the largest contributors are more than 3.5 GW of hydro power, over 600 MW of wind and close to 40 MW of geothermal.
Using the power supplied by Enel, AngloAmerican aims to bring down its total CO2 emissions in the country by more than 70%. The agreement will take effect in 2021, said Enel.
EGP is currently seeking environmental approval for the $400 million 404 MW Sierra Gorda PV project in Chile's Antofagasta region (see Enel Green Power Planning 404 MW PV Project In Chile).
A September 2018 Fitch Solutions Macro Research report on mining sector's use of renewable energy claimed rapidly falling costs of solar PV and wind power, regulatory push and pressure to improve ESG standards will drive mining companies globally to generate power from renewables, mainly PV and wind (see Mining Industry To Go Solar PV & Wind).