IFC, DEG, Canada fund Chilean solar power project

World Bank Group member International Finance Corporation (IFC), Deutsche Investitions und Entwicklungsgesellschaft (DEG) and the Canadian government have provided funds for the expansion of SPS La Huayca’s solar power plant in the town of La Huayca, Northern Chile.

Under a loan package, IFC has financed $28.6m, including $14.3m from IFC’s account and $14.3m from the IFC-Canada Climate Change Program, while DEG provided $18.5m.

The Canadian government’s contribution was instrumental, in makinge the financing package viable.

IFC infrastructure senior manager Gabriel Goldschmidt said that the corporation is pleased to support the first project-financed merchant solar plant in Chile.

"We hope that this transaction will help to accelerate the development of the solar photovoltaic industry in the country," Goldschmidt added.

The goal of the project is to expand the company’s existing 1.4MW plant capacity to 30MW, while reducing GHG emissions of 24,500 tons of CO2 per year.

Saferay, owner of SPS La Huayca, managing director Marko Schulz said that the financial support of IFC, DEG and the government of Canada is helping us demonstrate that solar energy has great potential to diversify Chile’s energy mix to include commercially sustainable renewable energy projects.

Canada environment minister Leona Aglukkaq said that the global challenge of climate change requires a global solution and the government of Canada is proud to support environmental efforts such as these.