Espejo de Tarapacá
- Energy generation and access
- Health, food and water security
- Livelihoods of people and communities
Location & People
- Latin America and the Caribbean
- Chile CHL
- Public / Private
- Project size:
- E&S Risk category:
- Category A
- Category B
- Category C
- Instrument Equity USD
- Valhalla Equity USD
- Strategic Private Investor Equity USD
- TBD Loan USD
Project ownersAccredited Entity
- Access Modality: International
- Energía de Tarapacá SpA
- Tarapacá Fund
- Energía Valhalla
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.
|ESS report||FP115 - MUFG - Chile||17 Jun 2019|
|Approved funding proposal||FP115 - MUFG - Chile||23 Jul 2019|
- MUFG Bank, Ltd (formerly, Bank of Tokyo-Mitsubishi UFJ, Ltd.) (MUFG Bank (formerly, BTMU)) Mr. Toshiyasu Sugama Tel: +81-3-6259-2214 Mr. Akira Otaka Tel: +81-3-6259-2213