Codelco, the Chilean state-owned copper miner, has taken a significant step towards its sustainability goals by securing enough renewable energy to power its operations entirely with green electricity before its original target date of 2030.
The mining company announced on Monday that it has amended its 2007 power purchase agreement (PPA) with Central Termoelectrica Andina SpA (CTA), a subsidiary of Engie Chile, to transition from coal-derived electricity to renewables. This modification, effective from January 1, 2026, accelerates Codelco's journey towards decarbonization.
The revamped PPA is a crucial milestone in Codelco's sustainability strategy, enabling it to achieve complete decarbonization well in advance of its initial timeline. Earlier this year, Codelco also inked 15-year PPAs with three companies, securing a total of 1.8 TWh/year of renewable electricity. These agreements are projected to propel the company's power mix to around 85% renewables-based by 2026.
Furthermore, Codelco renegotiated its PPAs with utilities Colbun and AES Andes, signaling a firm commitment to transitioning away from coal in favor of cleaner energy sources.
Engie Chile, a subsidiary of Engie SA, has also pledged to halt coal-based power generation in Chile by 2025, aligning with global efforts to combat climate change and reduce carbon emissions.
