- This is the Yallique Consortium formed by Transelec, ISA Inversiones Chile and China Southern Power Grid International (CSG), who submitted the best offer for the Kimal-Lo Aguirre project in Chile.
- This line is the first in Chile to use direct current technology (HVDC), which will enable a significant advance in the decarbonization of the country’s energy matrix.
- With this new project, ISA will have more than 2.300 km of transmission lines in Chile.
The Yallique Consortium, formed by Transelec, ISA Inversiones Chile and China Southern Power Grid International (CSG), submitted the best offer for the construction and operation of the Kimal-Lo Aguirre project, for an annual remuneration of USD 116,3 million, in 2021 dollars. The event took place after Chile’s National Electric Coordinator opened the economic proposals submitted in early October for the international public bidding process.
The Kimal-Lo Aguirre project considers the construction of a bipolar HVDC transmission line with a capacity of 3.000 MW at 600 kV, and will extend over 1.415 km. This is the first direct current line in Chile; a technology that allows greater transmission capacity with lower transmission losses, compared to alternating current projects, and does not require intermediate substations. This project will also allow connecting the energy from renewable projects in the north of the country to the center and south of Chile, leveraging the decarbonization of the energy matrix.
This new infrastructure will be essential to improve the security of the transmission grid, strengthen and increase the capacity of the National Electric System, while allowing the evacuation of large volumes of renewable energy, making it possible to meet the demanding commitment made by Chile at COP 26 to end coal use by 2030.
Regarding the project, ISA´s CEO, Bernardo Vargas Gibsone, said that “Kimal-Lo Aguirre is undoubtedly the most important milestone of the year for the group, as it represents an important challenge that we are sure we can face with the experience and confidence gained with Cardones-Polpaico, in addition to the experience and recognition of our allies Transelec and CSG. But most importantly, it is a project that effectively contributes to decarbonize Chile’s energy matrix, a goal that we have not only in this country, but in all the countries where we are present with our electric power business”.
Kimal-Lo Aguirre involves demanding deadlines for both the proponent and the Chilean government. About 3 years of environmental and sectoral licenses and 4 years of construction are foreseen for the line to be in service by the end of 2028.
It should be noted that this is ISA’s second HVDC technology project after the construction of the 2.400 km HVDC Madeira line in Brazil, at the time the longest direct current line in the world. In addition, both Transelec and CSG have developed multiple AC and DC electric power lines.
About ISA Inversiones
ISA Inversiones Chile is ISA’s investment vehicle in Chile.
ISA is a multi-Latin company with more than 54 years of experience and trajectory, operating in the Energy, Roads and Telecommunications and ICT businesses, which contributes to the quality of life of millions of people in Colombia, Brazil, Chile, Peru, Bolivia, Argentina, and Central America, through the work of its more than four thousand employees in its 48 companies.
The group does business based on technical excellence, efficient provision of services, and creation of sustainable value for its stakeholders and society in general, leveraged by innovation and digital transformation, and supported by best corporate governance and ethics practices.
ISA and its companies are committed to the mitigation and adaptation to climate change, the rational use of resources, the development of programs that generate a positive impact on the environment, the comprehensive development of the communities where it operates, as well as the quality, reliability, and availability of the services it provides.
About Transelec S.A.
Transelec is the main electric power transmission company in Chile with more than 10 thousand kilometers of lines between the regions of Arica and Parinacota, in the north of the country, to the Los Lagos region in the south.
Transelec is owned by a consortium comprising Canadian Pension Plan Investment Board (CPP), British Columbia Investment Management Corp. (bcIMC), Public Sector Pension Investment Board (PSP), and China Southern Power Grid International (CSGI).
About China Southern Power Grid International (CSGI)
China Southern Power Grid, with a service area covering 1 million km² and a population of approximately 254 million people, is engaged in the construction and operation of electric power grids in China’s five southernmost provinces. In 2021, CSG was ranked 91st on the Fortune Global 500 list. Due to its extensive experience in the operation of hybrid and long-distance AC/DC lines, CSG effectively operates one of the most sophisticated and technically advanced electric power grids in the world. CSGI, which is the investment arm of CSG outside of China, has a broad international portfolio and has become one of the leading electric power transmission companies seeking to deliver green and reliable electric power.
