Building on yesterdays massive 5 GW MOU with the Rajisthan Government in India, SunEdison has closed financing on a major Chilean plant. The Javiera solar park will be completed and connected to the grid in Q1 2015.
In a theme that is common to much PV development in mineral-rich Chile, the power plant will supply the copper mining operations of Minera Los Pelambres, a subsidiary of Antofagasta Minerals under a 20 year PPA.
SunEdison has highlighted the financing deal as it says it is the first time that: solely commercial banks are participating in the senior debt facility for a solar project in Chile. Presumably, by local banks becoming backers of the PV sector, financing costs for PV arrays in the country can be driven down – accelerating the development of the sector.
TerraForm Power will be the owner and operator of the power plant, while SunEdison will provide the O&M under a long-term agreement.
We are delighted to expand our collaboration with world-class financial institutions such as CorpBanca and BBVA, said Jose Perez, the President of SunEdison Europe, Middle East, Africa and Latin America. This project is further proof of the ability of solar photovoltaic energy to compete with other traditional energy sources in Chile, and demonstrates how clean energy technologies can contribute to meet the growing energy demand from the country’s mining industry.
Perez said that the model could be rolled out to other parts of Latin America.
CorpBanca and BBVA representatives commented on the continuing growth of renewables in Chile and their growing status as bankable investments. CorpBancas Rodrigo Oyarzo Brncic said: "This year, we have seen how renewable energy has made great strides in our country’s development, and CorpBanca has become a permanent partner in energy projects.