Espejo de Tarapacá

Espejo de Tarapacá

  • Status Under cancellation
  • Date approved 08 Jul 2019 at B.23
  • Est. completion 12 Feb 2025
  • ESS Category Category A

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.

Total project value


Tonnes of emissions avoided






Result areas

Project timeline


30 Aug 2017 - 678 days

Concept note received

30 Aug 2017

Funding proposal received

22 Nov 2018

Cleared by GCF Secretariat

23 Apr 2019

Legal opinion on AE's Internal Approval

27 May 2019

Cleared by iTAP

14 Jun 2019


08 Jul 2019 - 220 days

Approved by GCF Board

08 Jul 2019

FAA executed

11 Dec 2019

Under implementation

12 Feb 2020 - 982 days

FAA effective

12 Feb 2020

Disbursement - USD 6,194,873

22 Apr 2020

Under cancellation

20 Oct 2022

One region

  • Latin America and the Caribbean

One country

  • Financing
    • Private sector
    • Public sector
  • Size
    • Micro
    • Small
    • Medium
    • Large

GCF financing10% disbursed

EquityUSD 60,000,000
Total GCF Financing
USD 60,000,000


Co-FinancingEquityUSD 360,900,000
Co-FinancingLoanUSD 647,300,000
Co-FinancingEquityUSD 25,800,000
Total Co-Financing
USD 1,034,000,000

GCF Contacts

General media inquiries

GCF Communications
Send e-mail

Request for information

GCF Information Disclosure
Request information about this project

Project complaints and grievances

GCF Independent Redress Mechanism (IRM)
Phone +82 32 458 6186 (KST)
File a complaint

Integrity issues

GCF Independent Integrity Unity (IIU)
Phone +82 32 458 6714 (KST)
Send e-mail

Accredited Entity

MUFG Bank, Ltd
Ms. Atsuko Nuibe

Director, Sustainable Business Division
2-7-1, Marunouchi, Chiyoda-ku, Tokyo, Japan
Phone +81-3-3240-8186
More contacts

National Designated Authority

Ministry of Finance
Ms. Heidi Berner Primary
Undersecretary of Finance
Teatinos 120, Santiago, Chile
Phone +56 28282007
Mr. Jaime Tramon Secondary
Senior Advisor, Financial and International Affairs
Teatinos 120, Santiago, Chile
Phone +56 2 28282216


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.

GCF investment supports green energy transition in Chile

07 Aug 2019 / Green Climate Fund’s early equity investment in a solar power and pumped storage hydroelectric project will help decarbonise Chile’s energy mix and catalise private investments to the renewable energy market.