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Espejo de Tarapacá

TONNES of CO2 Anticipated tonnes of CO2 equivalent avoided


Mitigation & Adaptation
GCF results areas
  • Energy generation and access
  • Health, food and water security
  • Livelihoods of people and communities

Location & People

  • Latin America and the Caribbean
  • Chile CHL
Beneficiaries (approx.) 17,600,550

Investment Data

  • Financing:
    • Public
    • Public / Private
    • Private
  • Project size:
    • Micro
    • Small
    • Medium
    • Large
  • E&S Risk category:
    • Category A
    • Category B
    • Category C
Total project investment
GCF Financing
  • Instrument Equity USD
  • Valhalla Equity USD
  • Strategic Private Investor Equity USD
  • TBD Loan USD

Project owners

Accredited Entity Executing Entity
  • Energía de Tarapacá SpA
  • Tarapacá Fund
  • Energía Valhalla
Espejo de Tarapacá Approved July 2019 Est. implementation period 5.0 years

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.

Document title
Published date
Gender assessment FP115_MUFG_Chile 05 Sep 2019
Gender action plan FP115_MUFG_Chile 05 Sep 2019
ESS report FP115 - MUFG - Chile 17 Jun 2019
Approved funding proposal FP115 - MUFG - Chile 23 Jul 2019
Accredited Entity
  • MUFG Bank, Ltd (formerly, Bank of Tokyo-Mitsubishi UFJ, Ltd.) (MUFG Bank (formerly, BTMU)) Mr. Tomohiro Majima Tel: +81-3-6259-2749 Mr. Akira Otaka Tel: +81-3-6259-2213
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