AES Gener planning US$572 million solar farm in northern Chile

  • AES Gener plans to build a solar farm in Chile's Atacama Desert.
    AES Gener plans to build a solar farm in Chile's Atacama Desert.

Financials

  • AES
    NYSE
    12.55
    +0.17 (1.37%)
    4:04PM EDT

According to reports from Bloomberg, AES Gener, a division of AES Corp., is preparing to construct a US$572 million solar farm in northern Chile, which will help bring electricity to copper mines in the Atacama Desert. The company is pursuing a permit to build the farm in Chile’s Antogafasts region where, Bloomberg reports, BHP Billiton and state-owned Codelco, manage copper mines.

The report notes that BHP, Anglo American and other mining companies’ plant to invest nearly US$80 billion in Chile through 2013 to supplement what is considered a global copper shortage, which in turn will require additional energy delivered to the Atacama Desert. Likewise, AES Gener intends to invest US$2.5 billion in Chile over the next five years. The company currently provides nearly a third of the energy in northern Chile.

AES is not the only company with intent to build a solar farm in the Atacama region. Demersol Chile II is petitioning for a permit to build a US$32 million solar farm. Furthermore, Energias Renovables Fotones de Chile is also seeking a permit so that it can build a 180MW, US$400 million solar farm. Specific capacity information for the AES Gener solar plant was not disclosed.

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