ISA eyes US$1.2bn Chile transmission project as part of major investment plan

Colombian electric power and infrastructure group ISA said it could participate in Chile’s tender to build the US$1.2bn Kimal-Lo Aguirre HVDC (high voltage direct current) line as part of a three-year investment plan for the Chilean market.

Through local subsidiary ISA Interchile, the firm plans to invest US$2.2bn in new Chilean transmission assets during 2021-2023, as well as in some of its existing assets in Chile, including the US$1bn Cardones-Polpaico line that started operations in 2019.

The investments will be focused on projects that are included in Chile’s transmission expansion plan, ISA said in a press release. 

The company added that it is also considering investing US$1bn in bolstering and expanding existing transmission assets.

In Chile, ISA plans to invest a total of US$4.85bn in energy, roads and telecommunications over the next three years.

The firm’s investments to date in the country amount to US$2.8bn. 

The Kimal-Lo Aguirre line is the biggest ongoing transmission project in the country and it will mark a key milestone in Chile’s plan to decarbonize its power matrix over the coming decades by enabling additional transport capacity from the north to the center-south.

Chile’s largest transmission firm, Transelec, has also expressed interest in carrying out the project.

Parties that have registered for the tender process - which according to grid coordinator CEN include more than 60 firms - are able to submit comments until December 31. 

CEN will issue the final technical documents on February 1, when a consultation period will begin and run until April 22. Bids will be received from August 2-4 and the project will be awarded on October 29 next year.

In related news, Isa Interchile has energized nine new transformers as part of the overhaul of three substations in Chile’s central and northern regions with an investment of US$72.5mn.

The project will double transformation capacity at the Maitencillo, Nueva Pan de Azúcar and Nueva Cardones substations, local outlet Electricidad reported the company as saying.