Chile's Codelco revamps PPA to achieve decarbonisation before 2030

Chilean state-owned copper miner Codelco has contracted enough renewable energy to ensure its operations are 100% decarbonised before the committed deadline of 2030.

The mining company said on Monday it has modified the terms of its 2007 power purchase agreement (PPA) with Central Termoelectrica Andina SpA (CTA), a subsidiary of utility Engie Chile, to replace CTA’s coal-based electricity with renewables.

Subscribe for Renewables Now's Corporate PPA Newsletter here for free!

Under the PPA, CTA supplies 1,000 GWh of electricity to Codelco’s Gabriel Mistral Division mine and part of the Chuquicamata mine until 2032. Among the modified terms is the switch from coal to renewables from January 1, 2026.

It was this revised PPA that enabled Codelco to reach the goal of 100% green electricity before 2030. Earlier this year, the miner awarded 15-year PPAs to three companies for a total of 1.8 TWh/year, procuring enough electricity to ensure its power mix is about 85% renewables-based from 2026.

Before that, Codelco renegotiated its PPAs with utilities Colbun and AES Andes to swap coal for renewables.

Engie Chile, part of French utility group Engie SA (EPA:ENGI), has committed to stop generating coal-based power in the country in 2025.