IIC supports the development of the first geothermal power project in South America
The Inter-American Investment Corporation (IIC) has signed a US$30 million corporate loan facility with Enel Green Power Chile to finance exploratory works for what could be the first geothermal power project in South America—the Cerro Pabellon geothermal power plant in Chile. The loan will be funded by the Clean Technology Fund Loan (CTF), administered by the IIC.
The project, located in the Atacama Desert at an altitude of over 4,500 meters above sea level, consists of three power plants with a combined capacity of 75 MW, an 80-kilometer transmission line and other associated facilities. The loan will finance drilling costs of the exploratory phase, when other sources of financing are typically unavailable.
Unlike other intermittent renewable energy sources, the baseload electricity produced by geothermal power plants aligns with Chile’s high-energy consuming mining sector. The project will support the country to reduce its energy dependence on foreign oil and its vulnerability to oil price fluctuations. Cerro Pabellon will also have a positive impact on the environment, displacing the equivalent of approximately 232,761 tons of carbon emissions per year.
About the Inter-American Investment Corporation (IIC)
The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank Group (IDB Group), is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. The IIC finances sustainable enterprises and projects to achieve financial results that maximize social and environmental development for the region. With a current portfolio of $11 billion under management and 350 clients in 21 countries, the IIC works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.