Roundup: Mine-supply power line, subsidy bill, energy projects
Mine-supply solution
Argentine generator YPF Luz signed an MOU with miner McEwen Copper surrounding a planned power-supply project.
The agreement centers on a new transmission line, which would be financed and built by YPF Luz, to carry electricity from grid-connected YPF Luz renewable generation assets to the Los Azules open pit project in San Juan province.
Under the MOU, the parties will carry out associated negotiations on an exclusive basis, a YPF Luz statement said.
YPF Luz and McEwen had inked an initial agreement in 2023 to explore supply solutions.
High in the Andes mountain range, Los Azules is a US$2.46 billion feasibility-stage copper project whose construction is planned to start in 2026. An initial throughput rate of 80,000t/d is planned, followed by an expansion to 120,000t/d.
BNamericas, which has reported previously that generators were exploring mining sector supply opportunities, has contacted YPF Luz for more details.
Subsidy bill
Chilean energy minister Diego Pardow outlined the pillars of a government subsidy-focused bill.
The draft legislation, which entered congress on Monday afternoon, sets out proposed sources of funding deemed necessary to triple, to 4.7 million homes from 1.5 million originally, a temporary electricity bill subsidy scheme.
Around US$360mn was originally budgeted to pay for subsidies through 2026 to mitigate the impact of the unfreezing end-user electricity rates on 1.5mn vulnerable homes after they remained virtually unchanged for around four years.
The government is now looking to pay subsidies to more homes and through 2027, which will require sourcing around US$900mn more.
One pillar is a temporary increase, to US$10/t from US$5/t currently, in the carbon tax applied to fixed emitters such as thermoelectric generators, another is increased VAT revenue resulting from higher bills that have started to land on doorsteps after end-user rates were unfrozen.
A third is a temporary charge, for 2025-27, applied to withdrawals from the grid, while a fourth involves Chile’s PMGD distributed generation plants. The government proposes that PMGDs inject and withdraw power at the same connection point and sell it to their respective distribution firms, and that qualifying small businesses can access associated preferential prices, a ministry presentation states. The proposal establishes that a maximum of 500GWh of injections, annually, can be destined for this purpose.
Quarters of the power generation segment have been voicing concerns over changes, made unilaterally, in remuneration obtained by PMGD plants, which are up to 9MW in capacity and chiefly solar PV.
The government has also included proposals – surrounding distributor performance, fines and end-user compensation – linked to this month’s mass power outages in and around capital Santiago following a windstorm.
See the bill in the Documents box in the top-right corner.
Energy projects
Energy projects involving outlay of more than US$220mn were filed for environmental review in Chile in recent days.
Planned by developer X-Elio, US$181mn El Sobrante involves building in Valparaíso region a 110MW solar PV plant and a battery storage facility with 90MW capacity. Work is penciled in to start in March 2025.
Meanwhile, Biwo Renovables filed for review a US$45mn O’Higgins region standalone energy storage project. The project, due to enter the construction phase in July 2025 and branded Volcán Hudson, involves building a battery system with four-hour discharge capacity.
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