GDF SUEZ to build new power plant and transmission line following successful energy auction in Chile
GDF SUEZ, through its subsidiary E-CL, has been successful in the recent energy auction in Chile. The Group will deliver 5,040 GWh per year to the distribution companies of the SIC (Chile’s central electricity system) from 2018 for a period of 15 years. The energy will be provided from E-CL’s diversified portfolio of new and existing facilities, including LNG supply from GDF SUEZ.
The auction results are a significant development for the Group in Chile and will lead to the construction of the 375 MW IEM thermal power plant and an associated port, as well as a transmission line (TEN) that will connect the Mejillones and Copiapó cities.
Gerard Mestrallet, CEO and President of GDF SUEZ commented : “This success, following the energy auction result in Brazil in November, is a new step for GDF SUEZ to achieve its ambition to be the leading private power producer on the continent within three years. This project allows E-CL to commercialize energy in SING and SIC markets, to diversify its client portfolio and to contribute to an overall more efficient power market in Chile.”
IEM will be located in Mejillones, in the Northern system and represents an investment of approximately US$ 1,000 million. Environmental permits for the plant have been obtained and an EPC contractor appointed. The plant is expected to start operation in 2018.
The energy from this plant will be delivered to the SIC via the 600 km TEN transmission line, which has the potential to interconnect the two main electrical systems in Chile, as well as enable further deployment of non-conventional renewable sources. The total investment in the transmission line is estimated at US $700 million.
GDF SUEZ in Chile
GDF SUEZ is present in Chile through E-CL, the principal electricity generator on Chile’s Northern Electricity Grid (SING), with an installed capacity of 2,016 MW. GDF SUEZ also holds 63% in the Mejillones LNG terminal which became commercially operational in April 2010. In Chile’s Central Power Grid (“SIC”), the Group owns and operates the Monte Redondo wind farm. The Laja 1 hydroelectric project, a “run-of-the-river” plant, is currently under construction.
Solgas (100% GDF SUEZ) is a company dedicated to purchasing, selling and distributing gas to industrial and corporate clients.
GDF SUEZ is also present in energy services through its subsidiaries Cofely and Tractebel Engineering.
GDF SUEZ develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: independent power production, liquefied natural gas, renewable energy and energy efficiency services. GDF SUEZ employs 147,400 people worldwide and achieved revenues of €81.3 billion in 2013. The Group is listed on the Paris and Brussels stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20).