Etrion Corp., a solar power producer, and Empresa Eléctrica ERNC-1, a power trading company, announce the execution of a long-term power purchase agreement for Project Salvador, a 70 MW solar power plant in northern Chile (Project Salvador).
As previously announced, Etrion and its partners, Total and SunPower, celebrated the completion of the Salvador solar power plant in January 2015. Project Salvador is owned initially 70 percent by Etrion, 20 percent by Total and 10 percent by a local developer. Project Salvador is expected to produce about 200 GWh of solar power per year, enough to supply electricity to about 70,000 households in Chile.
Project Salvador is currently operating on a merchant basis where the electricity produced is sold on the spot market and delivered to the Sistema Interconectado Central electricity network. To secure a portion of the revenues, Project Salvador has executed a long-term PPA with EE-ERNC-1, an investment grade off-taker.
The PPA is for about 35 percent of Project Salvador's production for 15 years starting January 1, 2016, with the electricity price denominated in U.S. dollars and inflated according to the US Consumer Price Index.