Espejo de Tarapacá
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.
- Private sector
- Public sector
General media inquiriesGCF Communications
Phone +82 10 4458 7751
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Project complaints and grievancesGCF Independent Redress Mechanism (IRM)
Phone +82 32 458 6157
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Integrity issuesGCF Independent Integrity Unity (IIU)
Phone +82 32 458 6155
National Designated Authority
News + Stories
GCF and MUFG Bank initiative to accelerate green energy transition in Chile
11 Dec 2019 / Today at COP25, the Green Climate Fund (GCF) and MUFG Bank, Ltd. took the first step towards allocating GCF resources to the Espejo de Tarapacá renewable energy project in Chile by signing a Funded Activity Agreement (FAA). The project, which was submitted by MUFG Bank – one of GCF’s Accredited Entities – will be led by the renewable energy developer Energía Valhalla.