Providing stable, 24-hour baseload energy and solving the intermittency of renewable energy through a combination of pumped storage hydroelectric energy and a solar power plant

Exposed to spot market price, the Chilean energy market is unique in that it has volatile pricing throughout the day. Many renewable energy projects encounter intermittent issues where volatile pricing on the spot market can be a great disadvantage, particularly in solar power plants, which operate during the daytime only.

The Espejo de Tarapacá project comprises two commercially-integrated power plants: (1) a 300 MW pumped storage hydroelectric plant using the Pacific Ocean as its lower reservoir; and (2) and a 561 MW photovoltaic solar plant.

The project will set a precedent by providing a renewable baseload solution at a competitive price. It will also contribute to climate change adaptation by providing stable water supply from its own desalination plant to vulnerable local communities. GCF’s USD 60 million anchor equity investment will help attract additional private sector debt and equity investors, which will fund the remaining investment of USD 1.1 billion.

This project has an estimated lifespan of 35 years.