CHILE — Chilean grid coordinator CEN has awarded the county’s largest ongoing transmission project to a consortium comprised of local player Transelec, Colombia’s ISA and China Southern Power Grid International.

The three firms, under the name Yallique, will now have the right to build and run the $1.5 billion Kimal-Lo Aguirre HVDC project, which is expected to strengthen Chile's center-north interconnection, reports BNamericas.

The companies offered the winning bid for the 1,500-km (933-mile) line last week, which offered to execute the project in return for an annual cost by a tranche of $116 million, 34.3% less than the maximum price established by CEN.

The tender’s other bidder, a consortium comprising Spain’s Iberdrola and local firm Celeo Redes, offered a VATT of $197 million.

The line is considered pivotal for Chile’s ability to carry out its coal retirement commitments by replacing thermal generation in its central regions with renewable output that is strongly concentrated in the country's north.

The winning consortium will have three years to complete the environmental and other permitting processes, and construction will take some 4.5 years. The project is therefore expected to enter operations towards the end of 2029.

Source: BNamericas