The capital expenditure of $12.6 million was financed through an energy service company model and a long-term power purchase agreement backed by an investment fund, removing the need for the mining company to deploy its own balance sheet. This financing structure reflects a broader shift in industrial energy procurement, where third-party capital underwrites renewable generation and storage assets in exchange for predictable off-take contracts. Carlos Angulo, solar business manager at SGS Skyclope, emphasized that the challenge in mining now extends beyond adding renewable capacity to managing generation, storage and consumption with real-time data to optimize dispatch decisions and reduce hidden inefficiencies.
The environmental displacement is significant. Using a standard emission factor of 2.68 kilograms of carbon dioxide per liter of diesel, the projected reduction of 2.7 million liters corresponds to approximately 7,236 metric tons of avoided CO2 emissions annually. The project also addresses a systemic issue in Chile, where 6,200 gigawatt-hours of renewable energy have been curtailed due to transmission congestion, according to data from the national grid coordinator. The national energy commission has identified a requirement for 1,100 megawatts of additional battery capacity to absorb otherwise wasted clean generation.
The case highlights a transition in energy strategy for mining operations, where intermittent solar output is time-shifted to match production schedules rather than relying on continuous baseload supply from fossil fuels. SGS Skyclope incorporated real-time monitoring to identify consumption anomalies and optimize charge and discharge cycles, converting energy management into an operational variable rather than a fixed cost. The firm notes that visibility into granular consumption patterns allows operators to detect inefficiencies that remain hidden in aggregate metering, supporting more informed decisions on generation capacity, storage sizing and contracted supply terms.
Chile’s storage buildout has accelerated sharply. As of March, the country reported 2,071 megawatts of storage in operation, 2,119 megawatts in testing and 4,597 megawatts under construction, surpassing the government’s 2,000-megawatt target set for 2030 well ahead of schedule. The rapid expansion reflects both favorable solar resources and an increasing need to firm intermittent generation as renewable penetration rises across the national grid. For industrial users, particularly in mining, storage enables capture of low-cost or zero-marginal-cost solar electricity during midday and redeployment during peak demand or high-tariff periods, improving both cost structure and supply reliability without sacrificing operational continuity.
This article was curated and published as part of our South American energy market coverage.
