The Chilean National Energy Commission (CNE) said on Tuesday that it has granted approval for the early termination of the power supply contracts associated with Mainstream Renewable Power’s 109-MW Ckani wind farm project on the basis of force majeure.
Mainstream’s Chilean unit Huemul Energia SpA and local distribution companies filed the termination request due to delays in the project caused by the discovery of archaeological remnants on the construction site. The findings included what would have been a part of an important pre-Hispanic ceremonial centre, called Ckonatur Marka, leading the National Monuments Council to order a complete halt of construction activities, the CNE said.
Mainstream secured power purchase agreements (PPAs) for Ckani, later renamed Ckhuri, in August 2016 as part of the 2015/01 bidding process. The contractual commitments included the start of wind energy supply on October 1, 2021, with an annual delivery of 374 GWh at the current price of USD 52.1 (EUR 46.59) per MWh.
However, due to the impossibility to finalise the project and meet the contractual conditions, Huemul and distributors requested early termination by invoking force majeure, the CNE said.
In a statement obtained by BNamericas, Mainstream said that the clauses in the regulated supply contracts allow for an early termination due to a force majeure event that lasts for more than 12 months.
The Ckhuri project is part of the Huemul portfolio within Mainstream’s 1,300-MW Andes Renovables wind and solar photovoltaic initiative in Chile. The package includes three wind and two solar projects with 630 MW of combined generation capacity.
According to Mainstream’s website, the Ckhuri wind farm is still listed as under construction, and its commercial operation date is scheduled for 2023.
(USD 1.0 = EUR 0.894)
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