The El Arrayán Wind power project is the largest wind project in Chile and all of South America. Construction works started in May 2012 and the first turbine was erected on 29 October 2013. The project entered into a long-term lease agreement with the land-owner in January 2012.
Skanska was awarded the construction contract worth $76 million for the wind farm in March 2012. The scope of the contract includes planning, design, procurement and construction of roads, foundations, buildings, and electrical infrastructure, including two substations and a 220kV transmission line.
Financing for the US$245 million wind farm was secured in May 2012. Eksport Kredit Fonden, Bank of Tokyo-Mitsubishi UFJ, Credit Agricole, Sumitomo Mitsui Banking, and local bank Corpbanca are providing funds for the project.
Pattern Energy is the operator of El Arrayán Wind and is a joint venture owner with a net ownership interest of 31.5% in the project. Its joint venture partners include AEI El Arrayán Chile SpA, a subsidiary of AEI, and Antofagasta Minerals SA (AMSA) with net ownership interests of 38.5% and 30% of the project, respectively.
In addition, AMSA is the controlling party of the off-taker Minera Los Pelambres, which will acquire approximately 70% of the project's expected electricity generation through a long-term fixed-for-floating hedge. The project will sell its remaining output into the Chilean spot market at the prevailing market price at the time of sale.
El Arrayán connects to the Sistema Interconectado Central's 220kV transmission system. The project is located on approximately 15,320 acres of coastal land on a long-term lease with a single landowner. The project 115MW project consists of 50 2.3 MW Siemens turbines mounted on 80m-high towers.
The renewable power project will offset the emission of around 320 million tonnes of CO2, while helping to meet Chile's goal of producing 20% of its energy from non-conventional renewable sources by 2020.