Carey counsels Codelco on bidding for three 15-year PPAs

Carey has counselled Codelco in the preparation of the strategy and all applicable documents for a public renewable energy tender for the company’s corporate supply for the period 2026 – 2040, in which more than 50 national and international companies participated. The process culminated in the award and conclusion of three 15-year power and energy supply contracts (PPAs) for a total volume of 1.8 TWh/year.

The consultancy included the preparation of the Prequalification Bases, the Bidding Bases, as well as the preparation and negotiation of PPAs with three relevant generation companies (Atlas, for 375 GWh/year; Colbún, for 1,100 GWh/year; and Innergex, for 350 GWh/year).

The bidding process, which closed on 28 February, involved a large volume of energy that was the subject of the tender: 1,800 GWh/year and in which bidders had to back their proposals with 100% supply from renewable energy generation sources. With this process, Codelco secured a matrix with 85% renewable electricity from 2026.

At the same time, it was innovative because the bidding process provided the possibility for participants to support their proposals, at their choice, either through their entire energy portfolio or through a single renewable energy generation project, which implied greater competition and allowed for the participation of different market players. The process even offered two types of contracts, at the bidders’ choice, depending on whether they chose to back the supply with their entire portfolio or with a particular renewable energy project, with different and innovative clauses depending on the industry’s requirements.

Ignacio Diaz and Delia Fontaine acted as in-house counsels to Atlas.

Carey’s team was led by partner José Miguel Bustamante (pictured), with support from associates Pablo Morales and Santiago Lagos.