Chilean firm Cariola, Díez, Pérez-Cotapos &
Cía Ltda has helped underground railway network Metro de
Santiago agree US$500 million worth of power purchase agreements
(PPAs) with solar energy provider SunPower and a subsidiary of
Latin American Power (LAP), paving the way for it to become the
first metro system in the world to run predominantly on renewable
Under the PPAs, SunPower, which is controlled by French oil
company Total, and LAP's San Juan will supply 60 per cent of
the transport system's energy demands. SunPower hired
Chile's Carey and the New York office of White
& Case LLP. Carey also advised San Juan.
San Juan will supply power from a 185-megawatt wind farm it runs
in northern Chile, while SunPower will draw energy from a
100-megawatt solar plant it is building, also in the north. The El
Pelícano Solar Project will go live by the end of 2017. Both
projects will start supplying the metro with energy in 2018, for a
The PPA between Metro and San Juan was signed on 23 May, while
SunPower's contract was agreed on 19 May. SunPower will finance
its PPA with Metro with a project finance agreement with a group of
banks, including Crédit Agricole. The banks are being
advised by Chadbourne & Parke LLP's New York office.
LAP funded its San Juan wind farm last year with a US$306
million project finance package from a syndicate of European
multilaterals and international commercial banks, in a deal that
called on Clifford Chance LLP, Carey and Cubillos
Evans Abogados as counsel to San Juan. White & Case, Barros
& Errázuriz Abogados, NautaDutilh, Kroman Reumert and
Larraín Rencoret Urzúa Abogados advised the
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Notwithstanding international and domestic adversities (ups and downs of prices for crude oil, peso-dollar parity, a not so-friendly neighbor president), the energy reform, perhaps the most daring of those undertaken by President Peña, offers yet a lot to reap from.
To achieve the goals, the Brazilian Government will carry out at least three energy auctions per year in the modalities A-3, A-5, Alternative Sources and Reserve Energy.
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