Photovoltaic Power Plant Will Generate Electricity for More Than 1,600 Chilean Homes

12/18/2015

IIC Loan of US$3.72 million will help diversify the power grid and reduce CO2 emissions 

Washington, D.C., December 18, 2015 — The Inter-American Investment Corporation (IIC) approved a loan of up to US$3.72 million to GR Huingan SpA in Chile comprised of an IIC loan of up to US$1.86 million and a concessional loan from the Canadian Climate Fund for the Private Sector in the Americas of up to US$1.86 million to develop, build, and start up a photovoltaic solar power plant with capacity of 3.4 MWp to generate electricity for more than 1,600 homes in Ovalle, in Chile’s IV Region (Coquimbo).

“This project will enable Chile to diversify its power grid, which today depends mainly on hydroelectric and thermal generation. The project is expected to generate 6,034 MWh of power and contribute to reducing greenhouse gas emissions by up to 4,746 tons of CO2 equivalent annually,” said Ana María Orellana, the IIC lead investment officer in charge of the operation.

The total cost of the project is approximately US$6.2 million, which includes development costs and the purchase of the panels, inverters, transformers, mounts, and other minor equipment, as well as construction, installation, and interest during the start-up period. The photovoltaic plant will connect to the power grid for the central part of the country (Sistema Interconectado Central, SIC) via a 23 kV distribution line.

GR Huingan SpA is a special-purpose Chilean corporation established to hold and develop this project. The power generated by the solar plant will be sold on the spot market at a set price.

About the IIC

The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). The Corporation provides companies with financing in the form of equity investments, loans, and guarantees, as well as with technical assistance, advisory services, and innovative knowledge products. In 2014, the IIC approved 64 operations totaling $426.3 million. Since its inception, the IIC has approved more than 920 loan and equity investments for SMEs and financial intermediaries, for a total of US$5.63 billion. An additional $3.7 billion has been mobilized through cofinancing and syndication agreements. For additional information on the IIC’s activities, visit www.iic.org.
 

Contact: Ana María Orellana

Telephone: + (562) 431-3707 in Santiago, Chile

Email: anamariao@iadb.org