Chile will expand the use of renewable resources to substitute for fossil fuel generation to meet the energy needs of its mining industry with two loans from the Inter-American Development Bank (IDB) of $27.7 million for the Arica 1 project and $25.7 million for the Los Loros project. Both projects will sell energy to the spot markets.
“These Projects will contribute to diversifying the energy matrix in the country, which is presently heavily dependent on imported fossil fuels, through the incorporation of renewable energy that is fueled by the exceptional solar resource of Chile’s Atacama Desert,” said Jean-Marc Aboussouan, Chief of the Infrastructure Division of the IDB’s Structured and Corporate Finance Department.
Arica 1 Solar Photovoltaic Power Project
The Los Loros project is the first solar PV project financed by the Bank in the Sistema Interconectado Central (SIC) of the country. The project, located approximately 50 km southwest of the city of Copiapó, has been developed by Solairedirect Chile. Solairedirect of France will be the majority shareholder in the project. It will generate approximately 54 MW of renewable energy and will connect at the Los Loros node, serving the significant energy needs of the central region of the country, and especially the Santiago area, with a reduction of 57,000 tons of greenhouse gas emissions annually.