President of Colbún at the Shareholders Meeting: “Chile needs to resume growth, regulatory stability and improvements in environmental processes to advance the energy transition”

PRESS RELEASE from Colbún
April 26, 2024

(Machine translation of original release, issued in Spanish)

Within the framework of the 2024 Ordinary Shareholders' Meeting, the president of Colbún, Hernán Rodríguez, highlighted in his speech the company's progress and challenges on its path to long-term sustainability and profitability. In addition, he pointed out four fundamental conditions for Chile to achieve a successful energy transition: economic growth, regulatory stability in the electricity sector and improvements in environmental evaluation processes and reaching agreements to promote the development of Green Hydrogen.

Regarding green hydrogen, Rodríguez stated that its development and role in the energy transition faces enormous technological, social, territorial and environmental challenges that will require agreements. “We need solid public-private agreements that allow us to have a shared view between the State, civil society and companies on the future of Green Hydrogen in our country. Without this common vision, it will be a case of frustrated development, losing the race to other countries that are advancing rapidly on this agenda,” the executive said.

In this context, the president of Colbún emphasized the need for improvements in environmental evaluation processes to promote investment development. “While private companies have the duty to carry out projects with high technical, environmental and social standards, involving communities very early - which in Colbún has been a systematic practice for years -, the public sector must provide stable regulatory frameworks. and without distortions that give the correct signals for the deployment of private initiative in competitive conditions,” he stated.

In addition, Rodríguez addressed the need to advance quickly in the modernization of regulations and in achieving greater regulatory stability in the electricity sector. “It is no mystery to anyone that our industry is currently experiencing significant regulatory stress. This has been, in part, a product of the accelerated technological reconfiguration of our industry, which has not been accompanied with the same speed by the necessary modernization of the respective regulations. A clear example of this is represented by the lack of investment in transmission lines, which have not followed in the same way the great growth that generation has had throughout the country," said the president of the Company.

“The above has also been influenced by political-regulatory decisions that, although they have had good intentions in their origin, have generated complex price signals that are critical for the good performance of the current and future system. In order for the private sector to continue contributing to the country, and for companies like ours to maintain the investment figures deployed in recent years, it is essential to clear up this type of uncertainty. With that objective in mind, we call for public policy decisions to be made based on technical information and available evidence, which enable a responsible energy transition that ensures the security of the electricity supply,” Rodríguez added.

company strategy

During 2023, the company made significant progress in its strategy, highlighting the alliance with Sumitomo for Green Ammonia projects and the development of potential projects in Antofagasta and Magallanes. In January 2024, Colbún inaugurated its first Green Hydrogen plant at the Fénix plant in Peru, which will be complemented this year with a similar plant at the Nehuenco Complex, thus reducing emissions from both facilities. Additionally, the company is carrying out other projects such as the development of buses powered by the new fuel in collaboration with Anglo American and Corfo .

Meanwhile, the Horizonte Wind Farm, one of Colbún's emblematic projects that will have a capacity of 816 MW, located in the commune of Taltal, reached 80% progress in March 2024. The company entered into environmental evaluation an expansion of the project to reach 996 MW of installed power, consolidating itself as the largest electric power generation plant in Chile for any type of technology.

In the last three years, Colbún has invested more than US$750 million in renewable energy and storage, a figure that will increase to more than US$1 billion at the end of this year once Horizonte is completed. The company has also strengthened its project portfolio, with milestones such as the environmental approval of the Celda Solar photovoltaic and battery project, and the entry into environmental evaluation of the Cuatro Vientos wind project, both in Chile.

Regarding Colbún's project portfolio, this includes renewable generation and storage initiatives in earlier stages of development, with the objective of reaching at least 4,000 additional MW of wind, solar and storage capacity by 2030.

Purpose and election of board

During the Ordinary Shareholders' Meeting, the update of Colbún's Purpose was highlighted with the aim of making visible the mobilizing element behind its strategy, which reflects why it exists as a company. The process had the active participation of more than 80% of the workers and allowed the meaning of the company's work to be crystallized in a few words: "We transform energy, in balance with the planet, to promote projects and dreams."

In the event, the election of the company's board of directors was also held, with Viviane Blanlot, Marcela Angulo, Hernán Rodríguez, Bernardo Larraín, Rodrigo Donoso, Juan Carlos Altman, Francisco Matte, Franco Bozzalla and Andrés Kuhlmann being elected. In addition, the distribution of a total final dividend of US$196 million was approved.