The International Finance Corporation (IFC) is to support the construction of a major wind farm in Chile, boosting the country’s ambitions to develop a strong renewable energy sector.
The IFC has signed an agreement to invest $61.5 million in the Totoral wind farm, which is the country’s first project-financed wind farm project. It is also expected to be one of the largest operating wind farms in Chile when it is completed in 2009.
The Totoral project is located 300 km north of Santiago and will have a capacity of 46 MW. It is the first renewable energy project to be financed under Chile’s new Non-Conventional Renewable Energy Law, which was passed in 2008 and is designed to promote clean energy and diversify Chile’s energy mix.
IFC will invest $30.75 million for its own account and syndicate $30.75 million, to be funded by DnB NOR, the leading Norwegian financial services firm. The project developer is Norvind S.A., a special-purpose vehicle set up by the project sponsors, Statkraft Norfund Power Invest A.S, the Norwegian power developer, and its Chilean partner, Centinela.
Bernie Sheahan, IFC Director for Infrastructure, said, “IFC expects the investment in Norvind to catalyze more project finance in non-conventional, renewable energy projects in Chile. We look forward to continuing our support for such sustainable energy projects in the country, including wind power, geothermal and small hydropower.”
The Chilean government is aiming to rapidly increase and diversify energy supplies in the country to improve security of supply and overcome shortages. Endesa Chile last year announced plans to expand the 18 MW Canela wind farm in Chile, while in September 2008 Spanish renewable energy developer Grupo Enhol and Haciendas Talinay of Chile said that they plan to build a 500 MW wind farm near Ovalle in Chile.
The Totoral project will be equipped with 23 Vestas wind turbines. It will generate around 110 GWh/year of electricity for the central grid, helping to relieve supply constraints in the region.
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