The company has received board approval for the financing from the Overseas Private Investment Corporation (OPIC), the US government’s development finance institution, and IFC, a member of the World Bank Group. The loans are expected to close later this summer and they clear the way for First Solar to proceed with construction planning at the site, located near the city of Copiapo.
Terms of the deal have not been disclosed, but the amount approved by OPIC is up to $230 million with the IFC board approving a figure of $60 million.
The Luz del Norte project is the first of several projects the company has in its regional development pipeline. It will be the first of the company’s projects in Chile to start construction. The Chilean government’s National Energy Strategy includes a plan for expansion of renewable energy capacity to 20 percent of its total generated power by 2025. The power generated by the Luz del Norte project will be injected into the Chilean Central Interconnected System thereby contributing significantly to the government’s renewable energy goal.
“The Latin American region has a growing need for innovative and efficient energy solutions right now” said Tim Rebhorn, Senior Vice President, Americas for First Solar. “This investment support from OPIC and IFC is instrumental in bringing the project in Chile to life.”
The Atacama Desert receives some of the world’s steadiest concentrations of direct sunlight thereby presenting ideal conditions for solar power generation. The Luz del Norte project therefore represents an important advancement for Chile with regard to solar energy development in the region. First Solar has been working closely with the Chilean government, regional authorities and the local community to design, develop and build the project. Particular effort has gone into understanding the concerns of the local community with regard to environmental impact, the national interest in the technology related to connection to the grid and the broader industry power requirements, among other considerations.
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