A consortium led by Spanish energy company Iberdrola has been chosen by Chile’s National Electric Coordinator to participate in a tender to build and operate a high-voltage direct current (HVDC) transmission line.

The 600kV HVDC line will run between the Kimal and Lo Aguirre substations, measuring 1,500km in length.

Known as Meval, the consortium includes Iberdrola’s transmission arm, Iberdrola Redes España, as well as energy investment company Celeo and Netherlands-based pension fund APG.

The project includes the construction of two alternating current (AC) / direct current (DC) converter stations at the Kimal substation in Antofagasta and the Lo Aguirre substation in the Metropolitana region.

These converter stations will feature Siemens technology and support the connection of renewable energy in the regions, where power demand is high.

The project also involves upgrading the region’s existing power stations.

It is expected to involve a total investment of more than $2.5bn.

In addition to the Meval consortium, the National Electric Coordinator has received a bid from a consortium called Yallique, which includes ISA Inversiones Chile, Transelec Holdings Rentas and China Southern Power Grid International.

National Electricity Coordinator president Juan Carlos Olmedo said: “Eighteen months ago, we began the work for this bidding process, the most important and largest that we have been responsible for as coordinator in our five years of life, work that we have had to develop during the Covid-19 pandemic.

“This project is essential to have a reliable, safe, resilient and affordable electricity supply for the country’s inhabitants.”

The successful bidder for the project is due to be announced by the National Electric Coordinator in December.

Construction of the project is estimated to take 84 months, with the line scheduled for commissioning in 2028.

Last month, RES sold a 245MWdc Avonlie solar development project in New South Wales, Australia, to Iberdrola for an undisclosed sum.