-
Canada’s Total Climate Finance Contribution:
$18,000,000 CAD
- 2011 to 2012: $18,000,000 CAD
Targeted Countries:
Chile
Funding Period: 2011 to 2012
Type of Support:
Mitigation
Delivery Partner(s):
Description
The Canadian Climate Fund for the Private Sector in the Americas (C2F) at the Inter-American Development Bank (IDB) provided support for a 53 megawatts peak (MWp) solar photovoltaic (PV) power plant in Chile. This project aims to increase the supply of renewable energy in Chile, to meet growing demand and reduce the reliance on fossil fuels. The project will inject energy into the Sistema Interconectado Central (SIC) electricity grid, allowing it to sell its full energy output to the spot market. This is one of the IDB’s first merchant solar PV projects, placing it in direct daily market competition with fossil fuel based power generators. The C2F is supporting this project by absorbing initially high market risk, particularly in the first several years when market prices are expected to be quite low.
Results/Expected Outcomes
The expected intermediate outcomes of this project include 53 megawatts peak (MWp) of renewable energy capacity installed, the production of 109,660 megawatt hours (MWh) each year of electricity from renewable sources, and the abatement of an estimated 73,800 tons of CO2 each year. These results will help to enhance energy capacity in Chile, providing national and local benefits. Including providing new employment opportunities for approximately 128 people. The project will also work with the community and local officials to identify potential social programs to support, including preference to those which benefit vulnerable groups in the area, such as women. Results achieved to date include the completion of 90% of construction.
Co-Financing/Mobilized Finance ($CAD):
$78,700,000
Estimated GHG (metric tons of CO₂) Reduction Associated with Project (per year)Disclaimer *:
73,800