Atlas Renewable Energy talks Codelco, Copec contracts

US-headquartered clean power player Atlas Renewable Energy is helping drive Chile’s energy transition. 

Atlas was recently awarded contracts to supply electricity to state-owned mining giant Codelco and to energy trader EMOAC, a subsidiary of local group Copec. It will build a solar-energy storage hybrid facility under the agreement with the former and a standalone storage system under the deal struck with the latter.

In Chile, Atlas has utility-scale solar farms in operation for combined capacity of over 400MW – one in Santiago Metropolitan region and one each in Antofagasta and Atacama regions – and has three planned wind parks that constitute its 417MW Alpaca portfolio, which are earmarked for the country’s south. 

To find out more, BNamericas conducted an email interview with Alfredo Solar, Chile CEO of the Miami-based firm, whose regional footprint also covers Brazil, Colombia, Mexico and Uruguay.

BNamericas: In recent months, Atlas has made announcements about projects and contracts in Chile. It seems the company continues to bet on renewables and that the decarbonization of the productive sector is generating opportunities.

Solar: Yes, at Atlas Renewable Energy we continue with great interest in developing our investment plan and taking advantage of the commercial opportunities that arise to seek long-term contracts with the best counterparties, as has been the case with Copec and Codelco.

The above is part of our essence as an international 100% renewable energy generation company - since its origins - that develops, builds, finances and operates clean energy projects in Latin America since the beginning of 2017 and has positioned itself as the second-largest producer of solar energy in the region.

Specifically in Chile, supported by these two recently closed contracts, Atlas consolidates itself as an ideal partner to support different industries and large companies in their energy transition processes and as a leader in the development of storage systems, a key technology to continue advancing on this path.

BNamericas: Atlas was awarded a contract with Codelco for the implementation of a new solar park with a battery system in Chile, which will supply 375GWh per year. What can you share about this project, for example, size, location, development status?

Solar: To supply the contract with Codelco, Atlas will build a hybrid park in María Elena district [in Antofagasta region], consisting of a solar plant with an installed capacity of 220MWp plus a 200MW battery system with four hours of storage, a project that will be connected to the Crucero substation. 

With this project, Codelco, the world’s main copper supplier, will be supplied 24/7, that’s, during the day and night thanks to the solar plant and the storage system.

BNamericas: Will this project be the first in the pipeline of new projects to be built here in Chile?

Solar: As you know, in Chile we already have three operational assets: Javiera, which supplies Antofagasta Minerals, Quilapilún which has a contract with regulated clients and Sol del Desierto which has a PPA [power-purchase agreement] with Engie. 

Now, what’s coming is BESS del Desierto, a 200MW independent battery project, or stand-alone plant, with four hours of storage, which will begin construction in 2024, to supply EMOAC, a subsidiary of Copec. And then, we will begin the construction of the solar project that, together with a battery system, will supply energy 24/7 to Codelco, as I explained in the previous question.

Along these lines, at Atlas we’re [also] developing a portfolio of wind projects called Alpaca, which consists of three plants: Guanaco, in Maule region, Los Alpes, in La Araucanía region, and Altos de Tablaruca, located in Los Lagos region. It’s projected that this portfolio will add 417MW of energy.

BNamericas: What were the reasons for this strategy of targeting the southern zone, for example, the profile of the wind resource, availability of transmission, demand for industrial offtakers in this part of the country?

Solar: Wind energy is a complementary renewable source that also allows generation during both the day and night, and it seems essential to us to have this resource in the generation portfolio. 

Without a doubt, the south of Chile has become an important focus in terms of wind resources and hence our interest in developing our portfolio in those territories, maintaining the stamp of quality and high standards that we have maintained in our previous solar projects.

BNamericas: What’s the current situation regarding the projects in the Alpaca portfolio and is the eventual incorporation of BESS systems foreseen?

Solar: The projects are in the process of environmental development, interconnection and engineering. The eventual incorporation of BESS must be analyzed in the future; for the moment our focus on storage systems has been linked to the two milestones launched in March of this year: Codelco and Copec.

BNamericas: Regarding BESS del Desierto, for Atlas, and given the context of curtailment in the north, how important is this step and are more agreements like this foreseen?

Solar: This milestone is of great importance for Atlas and also for the country, since it addresses a crucial problem in the current energy context: the curtailment of renewable energy. 

In Chile, about 3,000GWh is lost annually, mainly due to squeezed transmission and other associated variables. Of the total annual sustainable energy curtailment, almost 1,400GWh corresponds to solar energy, which - in turn - corresponds to 15% of the total supply of said technology, with all that this means for the advancement of the sustainable energy transition and improving the quality of life of Chileans.

As Atlas, we’re interested in finding suitable solutions for our customers, such as this power purchase agreement and a storage system. We hope to continue closing contracts of this type, which make a lot of sense.

BNamericas: Is there a provisional schedule and can you say how this storage system will be funded? For example, would the eventual purchase and sale contract be used to obtain financing?

Solar: The idea is that this BESS project will be operational in mid-2025. Its financing will be a combination of our own resources and bank debt.