Valhalla's development of 561MW PV and 300MW of energy storage in Chile's Atacama should reach commercial operation in 2025 (Credit: Flickr / Alessandro Caproni)
Financing is being lined up for Chile to deliver a colossal solar-plus-storage installation in the Atacama desert, paving the way for construction to start next year.
The Green Climate Fund (GCF) agreed this week to allocate US$60 million in fresh funding to the Espejo de Tarapacá project, slated for construction at a site near the Pacific coast.
The scheme, the work of Chilean renewable developer Valhalla, is designed to deliver a 561MW solar PV plant alongside a 300MW pumped hydro storage system.
The overall project is set to cost US$1.094 billion, split into equity (41%) and debt (59%). At US$543 million, the storage unit will take up half of the funding, while the PV plant will require US$425 million.
Work to develop Espejo de Tarapacá got underway in 2011, and has since cleared the engineering, design, permitting and community engagement phases.
The project sponsors expect it to hit financial close in 2020, followed by the start of construction in the same year. Commercial operation is slated to come in 2025.
The 1,500GWh-a-year scheme will be mostly owned by private sector investors (81% of all equity), but the GCF (13%) and Valhalla (8%) will retain smaller shareholdings.
According to project documents, Tarapacá’s first backers were a group of Chilean individuals who believed that bulk energy storage is key for the country to become fully renewable.
The scheme – which represents 35 million tonnes in CO2 savings – comes to fill a support gap for Chilean energy storage, according to its promoters.
According to them, current regulations claim to be technologically neutral but are indirectly promoting less-clean sources, by failing to recognise the environmental and social benefits of renewables and storage.
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2020 for its 7th edition!
The 6th Annual Solar & Storage Finance Asia conference will bring together policy makers, developers, financers and investors from across the region to discuss how we mobilise investment in tomorrow’s projects and overcome some of the challenges slowing us down. Don’t miss out, join the conversation and help us in our goal of driving forward large-scale renewable Solar & Storage projects across Asia.
The Energy Storage Latin America agenda provides the industry with an unrivaled opportunity to discuss how the region is set to unlock the full potential of energy storage, accelerate deployment and address the main regulatory and financing challenges. The Energy Storage Summit Latin America is the first event of its kind, designed with a clear goal to accelerate both dialogue and deployment of energy storage solutions. Hear from a world-class line up of industry speakers discussing: The changing market, Active and pending projects, Regulatory environment, Financing options and New storage technologies. This event is the only place where the entire energy storage value chain will be present. Enquire now and be part of an unparalleled platform enabling you to network and do business with: Government, Utilities, Developers, EPCs, Investors and more.