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TEN completes SING-SIC Interconnection Project in Chile [free access]

November 27, 2017

Transmisora Eléctrica del Norte (TEN), a joint venture between the French energy group Engie SA (50 per cent) through Engie Energia Chile, and Red Eléctrica Internacional (REI) (50 per cent) through its local branch Red Eléctrica Chile, has completed the Sistema Interconectado del Norte Grande (SING)–Sistema Interconectado Central (SIC) interconnection project (also known as the TEN project) in Chile between the regions of Antofagasta and Atacama.

 

The interconnection project was proposed to interconnect the SIC and SING grids through a 600-km-long, 500 kV line from Mejillones to Copiapó. The USD776 million project also included the interconnection of the Los Changos and Kapatur substations via a 3-km, double-circuit 220 kV line.

 

The interconnection will help supply power to mining projects in Atacama and Coquimbo. It has a capacity of 1,000 MW to transfer electricity from power generator Energía Chile S.A.’s (EECL) coal-fired plant Proyecto Infraestructura Energética Mejillones (PIEM) in Chile’s northern Region II (Antofagasta), to Copiapó in Region III.

 

In January 2016, 50 per cent equity shares of TEN were sold to the REI’s parent company Red Eléctrica Corporación S.A (REC). Under the deal, Engie SA received USD218 million for the shares plus an amount corresponding to 50 per cent of the advances granted by Engie SA to TEN, to finance the project since the beginning of its construction. In December 2016, TEN also signed a multi-tranche long-term project financing of USD745 million plus USD111 million value-added tax (VAT) financing with 10 national and foreign institutions. The first disbursement of about USD457 million in December 2016 allowed TEN to repay USD171 million of the funds provided by EECL to develop the project.