The Green Climate Fund approves $49m loan for solar plant in Chile

The Green Climate Fund approves $49m loan for solar plant in Chile

The Green Climate Fund (GCF), a global scheme launched after the UN climate talks to advance the goal of keeping the temperature increase on the planet below 2C, has approved a US$49 million loan for a 143MW solar PV project in Chile.

The plant, called Atacama Solar, will be developed by Sonnedix, a US solar independent power producer. It will be situated in Chile’s Taracapá region, which has the highest level of solar irradiation in South America.

The project is planned to operate at $44/MWh by 2017, with estimates increasing prices up to $80/MWh by 2035.

The total cost of the project is expected to be $265 million and GCF’s loan will be offered through the Development Bank of Latin America.

Atacama Solar has the potential to make a substantial difference in fulfilling Chile’s renewable energy mandates and publicising GCF’s climate change values. Phase I of the project is 143MW, expandable to 250MW and is expected to generate 412GW per year.

The plant will be able to displace around 200,000 tonnes of carbon dioxide emission annually once completed.

Chile is still heavily dependent on imported fossil fuels, despite being the first Latin American country to surpass 1GW of solar PV capacity. The country’s government aims to have 70% renewables in the country’s energy mix by 2050.

@RGNOnline