SunEdison announces funding for huge Chilean solar farm
SunEdison has announced the closing of a $212.5 million non-recourse debt financing arrangement with IFC, a member of the World Bank Group and the Overseas Private Investment Corporation (OPIC), the U.S. Government's development finance institution. The debt proceeds will be used to finance the construction of a SunEdison owned 100MWp solar power plant in the Atacama Desert, Chile. SunEdison expects to complete construction of this power plant in Q1 of 2014.
IFC provided $65 million of debt, while OPIC provided a $147.5 million parallel loan. Rabobank provided a local Chilean Peso VAT facility worth $45 million. The total value of the debt for this transaction is approximately $260.5 million.
The construction of the 100 MWp plant began in August 2013 and its interconnection is expected to take place in different phases throughout the fourth quarter of 2013 and first quarter of 2014. The power plant "Amanecer Solar CAP" is expected to be the largest solar photovoltaic power plant in Latin America and will inject energy directly to the Central Interconnected System (SIC). The project is originated from an agreement signed in January 2013 with the mining and steel company CAP.
Pancho Perez, President of SunEdison for Europe, Middle East, Africa and Latin America, stated "We are very pleased to partner once more with OPIC and IFC. "Amanecer Solar CAP" is a landmark project that enables the deployment of solar energy in Chile in a meaningful way. Developing sophisticated energy solutions while reducing electricity costs has been a key differentiator of SunEdison's success in Chile."
Furthermore, he added "Photovoltaic solar energy is an ideal source to diversify the current energy mix, reduce energy costs, and contribute to the growing energy demand in a country that has extraordinary conditions for the development of this type of energy. This project is just the first step of SunEdison's long term commitment to the development of the green energy in Chile."
"As one of OPIC's first renewable energy transactions in Chile, this project will take advantage of the country's solar potential to increase energy access and create local jobs," said Elizabeth Littlefield, OPIC President and CEO. "We look forward to continuing the strong partnership with SunEdison as it supports Chile's effort to diversify its energy sources,"
"IFC's support to Chile's renewable energy sector through this landmark solar project with SunEdison is a continuation of our previous wind and hydropower investments in the country," said Bernard Sheahan, IFC Director for Infrastructure and Natural Resource. "We hope that this project will catalyze the growth of Latin America's solar sector and further the Government of Chile's efforts to better develop the country's remarkable renewable energy resources."
"We are pleased to extend our support for our client SunEdison, with whom we have partnered on many projects in the U.S., and look forward to continuing our cooperation," said Ron Klein, Managing Director for Rabobank Project Finance. "Amanecer Solar CAP is an exciting project and we are enthusiastic about the prospects for renewable energy in Chile, where Rabobank has a well-established banking business."
Located in the town near the city of Copiapo, Atacama Region, the project covers an area of approximately 215 hectares and will feature more than 300,000 SunEdison Silvantis photovoltaic solar modules mounted on SunEdison AP90 single-axis solar trackers. Once fully completed, it is expected to be the largest solar photovoltaic plant in Latin America. In its first year of operation, the system is expected to generate 270 GWh per year of clean energy, avoiding the emission of over 135,000 tons of CO2, equivalent to removing more than 30,000 cars from the streets.
